Proper Lingo?

[jamied66]

What is the name of your state? VA

I'm planning on taking care of some small "dings" in my credit over the next few months as a first step in repairing my credit report.

These aren't things I've been contacted by, but have been placed in collection for small amounts. One I didn't know about and the other I didn't pay in anger at my cable bill.

My question is: What should I be asking for, specifically from the company to provide me with? A "Paid in Full Letter" or is there a better name for what I'll need to forward to the Credit Bureaus to have this removed?

Thanks again.

 

[SCREWCREDIT]

Collection accounts are generally not "REMOVED" from your credit reports. Upon satisfying the balance owed on a given collection account, the collection agency will report the balance as $0.00 and "PAID" which is good, however, the account can and most likely will remain on your credit profiles for 7.5 years showing that the account did reach a collection state which is bad. Also, I'm not 100% positive but I believe by paying on those accounts you're resetting the clock for the 7.5 year time period in which the account can legally be reported for.

You can however contact the collection agencies responsible for these debts and beg & plead with them if you pay the amount owed plus all collection fees and interest, if they will agree to remove the account from your credit reports. Some agencies will give in because they want to recover the debt and legally they are allowed to remove the information as they are the ones that reported it. There is no federal level provision that absolutely requires a creditor or collection agency to report to any of the credit bureaus. THey do so at their own free will and choose what agencies to report to. Therefore, as much as they may tell you they have no control over the matter, they very much do. If they want to remove the information on account of your payment agreement, they most certainly can.. but I wouldn't count on it.. it's your job to convince them to do so.. and to be prepared to pay the debt in full the day you speak with them concerning the account (ps - if you were previously rude to any of their collection specliaists and they notated that on your account (internally), they're going to be less reluctant to help you and will probably tell you to go F yourself as far as getting the accounts actually "removed")

 

[Ladynred]

but I believe by paying on those accounts you're resetting the clock for the 7.5 year time period in which the account can legally be reported for.

And that is absolutely WRONG ! The date of first delinquency determines the running of the 7.5 year clock and that date is supposed to be immutable per the FCRA. Whether you pay it later or not makes no difference at all to the reporting period.

When it comes to collections, you should always negotiate a 'pay for delete'. Some will do it, others will not. If they tell you they can't do that, they're lying, they put it on there, they can take it off. If they refuse, pay it and wait a couple of months, then dispute it as 'not mine' with the bureaus. Having been paid, the collector may not respond to the bureaus and no response = deletion.

 

[SCREWCREDIT]

well perhaps I misconceived some information in the FCRA.. I'm not an expert.. and if you read my reply carefully, you'd see I posted "I BELIEVE" indicating I wasn't positive.. I have come across information in the past suggesting by paying the account you reset the reporting period because you're resetting the "date of last activity" by having initiated consumer activity on the account.. then again I've seen contradictive information suggesting the account expires 7.5 years from the date of the first deqlinquency on the account.. my apologies if my information wasn't 100% accurate.. I do my best but ladynred is correct about "pay for delete" as she calls it..

 

[jamied66]

Thanks for both of your responses.

I'm looking for "buzzwords" in this arena that I can use to help control the conversation as I have them with these people. Referring to their reference on the credit report as a "trade line" goes a long way, and an account being "time-barred from litigation" is a minor miracle when dealing with the bottom feeder collection agencies.

Is there a "magic name" for a letter I can receive in writing stating exactly what they'll do for my credit report? I'll be dealing with wachovia in the next week, if that's any help.

I dealt with Associated Recovery Systems this past Friday about an account my wife had in college (all our "bad" debt is from college or just after) and they were completely understanding and settled for half of a $1000 debt in 2 payments and agreed via a fax copy of a letter that stated pretty clearly that the TL on her report would be referenced as a "paid account" and not as an "paid account in collection". So they're not all evil, I guess.

Thanks again.

 

[Who's Liable?]

You should not be talking to these people on the phone but rather by CRRR letter... This gives you a paper trail that you can send to the Credit Bureaus...

Your first step is to send a validation letter to the collection agency. This letter informs the collection agency that they need to prove the debt is yours or "validate" it belongs to you, and inform them under law they have 30 days to validate.

If they do not send you a letter within 30-days, you send a nother CRRR letter demanding the validation with a reminder that you sent the first one on *date* plus you need to send a copy of their signature on the CRRR form...

The second step is to send a verifcation letter to the credi bureau(s). They have to check that the information they're reporting is correct.

If after all this has gone through and they still have not responded, or they respond AFTER 30 days, you send a "verification" letter via CRRR to the credit bureaus(or whichever one has you on file for the debt) along with copies of the CRRR forms you sent, asking for removal of the debt in you file as the collection agency did not respond in the amount of time allotted...

 

[foolsmission]

Thanks for both of your responses.

I'm looking for "buzzwords" in this arena that I can use to help control the conversation as I have them with these people. Referring to their reference on the credit report as a "trade line" goes a long way, and an account being "time-barred from litigation" is a minor miracle when dealing with the bottom feeder collection agencies.

Is there a "magic name" for a letter I can receive in writing stating exactly what they'll do for my credit report? I'll be dealing with wachovia in the next week, if that's any help.

I dealt with Associated Recovery Systems this past Friday about an account my wife had in college (all our "bad" debt is from college or just after) and they were completely understanding and settled for half of a $1000 debt in 2 payments and agreed via a fax copy of a letter that stated pretty clearly that the TL on her report would be referenced as a "paid account" and not as an "paid account in collection". So they're not all evil, I guess.

Thanks again.

Paying as agreed to Associated Recovery Systems is no better than not from a scoring perspective. No delete no pay.