Hi! My husband has 3 collections on his credit. I have been reading around the forum (which has such wonderful information!) but I seem to get things criss-crossed through reading so much. Therefore, just needing some confirmation that I am doing everything in correct order....
1. Send letter of debt validation to each CA. (I thought I read somwhere like this is asking to be sued...so just making sure I'm not getting in too deep over my head.
2. If no response within 30 days..write disputer letters to Credit Agencies requesting removal.
2a. If they do respond with proper paper-work...then send a "Pay for Deletion" letter. Is the pay for deletion like a settlement? For example one of the collections is a hospital bill over $2000. Could I ask them to delete the collection on my credit for 50% paid, $1000?
Also, my husband and I together have about $4500 in credit card debt. I would like to consolidate this debt into one payment with a low interest rate, however, keep the cards open so that we could increase his credit score fast. We are trying to raise his credit score by 100 points or more within the next 6 months...is this at all possible...any suggestions on how to do this super-fast with limited funds? I am really enjoying your community! Thanks in advance for any advice. :)
Hi wanna be , First off welcome to the forum. I am glad we are helping you and you enjoy the site.
Now, you are correct about sending the debt validation letter. Unless you are sure the statute of limitations has passes in your state (if you need this let us know the state) before sending a debt validation letter. Once you send one it can open you up for a lawsuit or at least settling the debt.
@. this is correct. They have 30 days to validate and if they do not the mark can be removed if you dispute. Now only the collection agencies mark will be taken off. The origianl creditors mark will stay for 7 years. Also make sure you get proper validation which includes the original signed contract and the collection agencies right to collect. Some will send a bunch of old bills and what not and hope you think this is validation. It is not.
You can ask for a pay for delete but make sure you get this in writing before paying the debt. Once the debt is paid some will not hold up to their word so a written statement is best.
We are trying to raise his credit score by 100 points or more within the next 6 months
It is possible if you are keeping your payment track record very clean without even a single mark henceforth.
Just need to remind you currently you owe 4500 + 2000 = 6500 so in coming six month if you try to make it (you can decide your monthly EMI with the lender) surely 100 point raise is not so difficult to achieve. :wink:
Hi Wannabdebtfree
Mostly the creditors agree to pay for deletion agreement if you pay back the debt in full. However, if you negotiate with the creditor to give you a discount on the outstanding debt amount and you pay off the debt as agreed between you and the creditor, your credit report will show the status of the listing as "settled for less".
You can go for debt consolidation loan to pay off your existing debt, but to get such loan, you need to have a very good credit score.
carol !! do you agree with the following statement?
" If one has really bad credit score and do not have any means to get the debt consolidation loan then he is further going to get trapped in the debt with increasing interest.If government won't intervene then the person is doomed."
thanks in advance. :wink:
FIREYONE..........yep..all this CAN be a bit confusing. I'm STILL confused on some things. So..........you're saying if the SOL has passed, I shouldn't try to do anything to the debt? But.......if the SOL hasn't passed, and I ask for some kind of Validation on the debt ( and none is given), I can 'dispute' the debt? How can I prove, to the CB's, that the OC/CA hasn't validated the debt within the 30 days? Obviously the CB's can't just take my word on this.
Whenever you dispute a debt with the credit bureaus, the bureaus will verify the debt with the original creditor or the collection agency as the case may be, and if the creditor fails to validate the debt properly to the bureaus, the bureaus will get it removed from your report. Now, if the creditor has not validated the debt within 30 days from the date of receipt of your debt validation letter and you have disputed the debt with the bureaus and even the bureaus have not removed it from your report, you can file a complaint with the FTC.
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I think I get it now ( I'm not sure, however). What if I DID dispute an item with the CB's, because the CA din't validate my debt. Does the CB STILL have to give the CA ANOTHER 30 days to validate it?
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First do a simple online dispute with CRA's, you might be surprised at what drops off. Hospital bills seem to disappear quickly with simple dispute through CRA's
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Thanks for the advice, MARK. I had a few of outstanding hospital bills. But...wouldn't you have to go the 'same route' with medical bills?.I mean, have them Validated, etc. from the CA who is handling them?
Yes, you can also ask for debt validation for the medical bills from the collection agency who owns your debt and they need to validate it within 30 days from the date they receive your letter. If they cannot validate the debt, simply dispute it with the bureaus and the bureaus will get it removed from your credit report.
SD, if you asked for debt validation and they did not validate then you need to get the dispute process started. Let them know that you asked for validation and did not get any. Make sure thirty days has passed since your request and hopefully you sent the valdation letter by certified mail. The other poster is correct also. Most hospitol bills can be removed by simply using this same process. The older they are the more likely they will be to not get validated.
Also if your debt is past the SOL I would not touch it. Just wait for it to fall off. One payment will get the clock restarted and open you up to a law suit. You do not want this especially if a debt collector owns the debt. They can be very harassing.
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That's what I'm asking.........how do I PROVE to the CB's that the CA's did not Validate the debt within 30 days? Do I need some kind of prove to them ( the CB's)? Or..does the CB's do their OWN investigation on this?
Or..does the CB's do their OWN investigation on this?
i doubt that CB's will do investigation on their own.you need to dispute it on your own with their standardized format. :arrow: