Credit Repair Company Getting Me SUED???

[DaveQuestions1]

What is the name of your state? Florida

Thanks so much for the quality advice I always receive from this forum, I just hope you can help me with this new dilema.

I have a question regarding a debt that a credit repair company I hired a couple months ago, recently had taken off my credit report.

The credit repair company had a cellular service debt of mine removed from my credit report (the debt has been on there since 2002/2003), and just yesterday I received a letter from a law office informing me that I needed to pay the debt in full and respond to their notice within a 30 day period.

What should I do about this situation, the credit repair company said they got the item removed because the collection agency could not prove the debt was mine. Does'nt that mean the debt is over and done with and I can forget about it?

OR

Should I be paying this debt like this letter is advising me to do?

If I do pay the debt, does it go back on my credit report and how long will it stay on my report if it does?

I really don't want to get sued, which it seems like it's what is going to happen. I don't understand why this is happening if the credit repair agency got the item removed from my report.

**Someone told me credit repair agencies are a scam, what they pretty much do is keep hammering a company/collection agency with dispute letters and eventually the company becomes so overwhelmed with the amount of requests received, that it cannot respond within the 30 day period required by law for them to prove the debt. As a result the credit bureaus have no choice but to remove the negative information from your credit report. Is this true, What should I do?


Thanks,
Very Concerned

[JETX]

Originally Posted by DaveQuestions1

the credit repair company said they got the item removed because the collection agency could not prove the debt was mine. Does'nt that mean the debt is over and done with and I can forget about it?

Nope. You are confusing two separate issues.
The credit 'repair' firm got the debt removed from your credit profile, presumably due to the creditor not providing a timely response to a validation request. That does NOTHING as to the validity of the debt.... only THAT report.
The creditor can pursue whatever legal remedies are available.

Should I be paying this debt like this letter is advising me to do?

From your post, unless you can prove that it is not yours or that the SOL has expired, they can pursue payment from you.

If I do pay the debt, does it go back on my credit report and how long will it stay on my report if it does?

Not relevant. The creditor can put that debt back on your report at anytime up until its 'death' per the FCRA:
§ 1681c. Requirements relating to information contained in consumer reports
(a) Information excluded from consumer reports
Except as authorized under subsection (b) of this section, no consumer reporting agency may make any consumer report containing any of the following items of information:
(1) Cases under title 11 or under the Bankruptcy Act that, from the date of entry of the order for relief or the date of adjudication, as the case may be, antedate the report by more than 10 years.
(2) Civil suits, civil judgments, and records of arrest that, from date of entry, antedate the report by more than seven years or until the governing statute of limitations has expired, whichever is the longer period.
(3) Paid tax liens which, from date of payment, antedate the report by more than seven years.
(4) Accounts placed for collection or charged to profit and loss which antedate the report by more than seven years.
(5) Any other adverse item of information, other than records of convictions of crimes which antedates the report by more than seven years.

I really don't want to get sued, which it seems like it's what is going to happen. I don't understand why this is happening if the credit repair agency got the item removed from my report.

Because removing from the report has NOTHING to do with the validity of the debt, or the creditors right to pursue it.

[DaveQuestions1]

Thanks for your response JETX.

Now I have a little bit more insight on this credit repair process, is it safe to say it is useless? I mean they stirr up things that have been dormant on your credit for years (which could get you sued) and in addition, the negative items may be put back on, so what is the point?...

Can you offer any advice/tips for dealing with the collectors? I think I am going to call them and try to settle.


Thanks,
DaveQuestions1

[debtcollector`]

How to negotiate a settlement:

1. Plan your call and set your goals before calling.
If you want to settle for 50% start negotiating at 25%.

2. Make no solid agreement on your first phone call.

3. Make sure you have the money to pay an agreed settlement immediately

4. Sit at a table with a notepad. Take notes of everything being said. (The collector is I promise you)

5. When you are talking to the collector, remember that the money you will be paying this is with is being given to you by you wife's uncle or something like that -- he has offered you $x - with x being your starting point in the negotiations.

6. Remember X is all the money you have to work with on this call. If the negotiation goes higher and you hit your goal tell them you have to have it in writing so you can bring it you your uncle and ask for more.

7. Make no promise to pay without the written settlement agreement. Don't pay or make a promise to pay on the first call.

8. Remember you are dealing with trained negotiators. If the collector becomes excited or you feel is getting abusive simply say, "Obviously we both want to take care of this, but I feel you and I aren't communicating well. May please speak with your supervisor?

9. It will take more than one call to do this right. You will need to take copious notes and make sure you get the names of who you talk to.

10. If you are concerned that you will not be able to handle the negotiation yourself, there are professional negotiators, but that is a pricey alternative and the possibility of the settlement going your way when you are paying for representation is much lower.

DC

[DaveQuestions1]

Excellent tips, thank you. I have a concern though regarding how this will affect my overall credit rating and for how long...

1) If I pay the full amount of the debt, will that payment be reported on my credit report at all (since it was already taken off) ?

2) Is it more favorable (credit-rating-wise), to pay the full amount of the debt as opposed to a partial settlement of the debt ?

3) If I set up a payment Plan with the collectors (I don't know if they do this) will that more favorably affect my credit?


I hope I was clear with my questions, as always your answers are appreciated.


Thanks,
DaveQuestions1

[JETX]

Originally Posted by DaveQuestions1

If I pay the full amount of the debt, will that payment be reported on my credit report at all (since it was already taken off) ?

No. If the debt isn't currently on your report, your payment by itself won't just magically appear. Any report would have to be done by the creditor or reporting agency.

Is it more favorable (credit-rating-wise), to pay the full amount of the debt as opposed to a partial settlement of the debt ?

No.

[quote]If I set up a payment Plan with the collectors (I don't know if they do this) will that more favorably affect my credit?[/quote
More favorably than not paying at all?? Yes, but only when paid in full.

[DaveQuestions1]

I called the collection agency (law office) that I received the notice from today trying to use the collection settlement strategy you told me about...

I told them my aunt was loaning me the money to pay the debt because of course I just did not have the funds personally and I asked them how much we could settle for (saying my aunt had advised me they would settle). The representative told me a settlement was not being offered at this time, however a payment plan was or I could pay the balance in full -- and I could take either of the two.

Well like you suggested, I made no arrangements and told her I'd have to discuss it with my aunt and get back to her. She didn't seem anxious to do anything either (unusual... I've spoken to collectors before ) and said ok, I can do that.

Do these people have some inside information I don't? like are they checking the balance in my bank account ?

Anyway what should my next move be?



Patiently awaiting your advice
DaveQuestions1

[AmarieNorton]

Originally Posted by DaveQuestions1

She didn't seem anxious to do anything either (unusual... I've spoken to collectors before ) and said ok, I can do that.

Maybe she's a newbie that hasn't completed her "be as aggressive and uncooperative as possible to get the debtor to pay" training yet.

Originally Posted by DaveQuestions1

Do these people have some inside information I don't? like are they checking the balance in my bank account ?

It's hard to say what they've got up their sleeves. They offered a payment plan or payment in full. IMO, you should pay in full (or at least a reasonable settlement amount) in exchange for removal of the neg. tradeline off of your credit reports. If you cannot pay in full then setup a payment arrangement that you can keep.

By the way, I'd advise against any type of credit repair company and I wouldn't go stirring the pot unless you have the money to pay for your valid debts. I think someone already said this but just because it got removed does not mean that you don't owe it.