I have read in many different forums and many websites that if i were to go head to head with a CA on debts that are nearing the 7 year mark and well past the SOL. "It can be done, it can't be done, you could get sued, it re-sets the SOL." i would like to seperate the fact from the fiction.
I have pulled my credit report/s and i see there are 2 collections and one charge off and a repo still showing on my report. The charge off shows a 0 balance but i don't see any CA assigned to it yet. N-E-ways. I have already disputed the accounts threw the CRAs and they say "it is verified that the debt is yours... Ok, so now i read that i am to ask the CRA or the CA? for a method of verification. And then i could send a letter to the CA "pay to delete" and or settlement letter? I am not concerned about my credit score; as i am current with all my current bills since 2003 and not been late on any thing, plus i am not looking to make any purchases for the next 4 years at least.
So, you may be asking for why worry about the old debts. Well I am looking to get a Security clearance and i need to know if clearing this up will help or not?
Thank Y'all ahead for your input.
Hi thinkingaboutit,
Welcome to the forum :)
Clearing up old debts will surely have a positive impact on your credit records. Can you tell me how old are the negative items listed on your credit report? If you do not have the name of a collection agency mentioned against the charged-off accounts, you can contact your original creditor. Your creditor will be able to tell you to which collection agency, they have sold off the debt. There is a step by step procedure to deal with a collection agency. They are as given below:
1) Ask for Debt Validation- You should send a "Debt Validation Letter" to the CA. In reply to your validation request the CA will provide you with the original contract with your creditor. They will also provide you with the past payment records (with your original creditor) and the amount that you still owe.
2) Negotiate a settlement- You can negotiate with the CA to reduce the debt amount. You can convince the CA, by explaining your financial situation and showing your willingness to pay. If he agrees you should come to a pay for deletion agreement.
3) Send a "Pay for Deletion Letter"- A "Pay for Deletion Letter" will ensure that the CA reports to the credit bureaus, after the payment is made. The credit bureaus will remove the negative remarks and update your the records.