Hello All,
I'm NEW to this website, and like many others trying to repair my credit. I need some advice, support, and guidance.
I first off pulled a copy of my credit report. Then send DV valdiation to ALL collection agencies (certifiied/return receipt) and original creditior (older inquiries).
I realize the next steps will have be determined depending on what the collection agencies verify or original creditors. (Deletion Letter, Settlement, Payment in full). And I know that any agreements from collections agencies need to be in writitng before making a payment.
A majority of the listings on my reports are student loan consolidation entries. The activitiy descpiton on these enteries state paid and closed. Will these affect me score negatively? or do i need to disputes these to see if they should be removed? (years 1998, 2002, 2001, I live in Alabama). My student loans are now with a new consolidation company.
2nd question
I've received letter from a collection agency stating that a debt has been closed at the request of our client (oriignal creditor). I've also received letters from collections agency stating that account has been charged off?
Do i need to attempt to contact the original creditor on closed or charged off accounts? Some of these accounts have not meet Alabama SOL. What actions to I need to take on the charged off and closed accounts?
3rd Question
From what date on credit report are state SOL applied which date is used to determine if SOL has expireed? Date opened? date reported? Date major delinquency 1st reported? Date of last payment?
Thanks so much for your assistance
repairing credit score
Hi Erick,
Welcome to this forum :) .
Sending debt validation letters to creditors and collection agency is a nice idea, and yes you should get written copies of all the agreements with the creditors and also the collection agencies.
If an account has been closed or charged off, you need to contact the collection agency (CA) to whom the account has been sold off. However, you can contact your original creditor (OC) and request them to pull back the account from the CA. If OC complies to your request, you can contact them henceforth.
If you deal with the OC, you can settle the debt amount with them. However, if you deal with the CA, in addition to the settlement agreement, you can request them to agree to a "Pay for delete" (PFD) agreement. With the PFD, your account will get reported as "Paid in full" if you pay the full due amount. However, if you settle to pay less than the amount owed, it will get reported as "Paid as settled". Not all agencies agree to a PFD.
Statute of limitations start from the last date of activity on the account. This can be making a payment, making agreement to pay, or the account used to charge the creditor.
Hope this helps.
Thanks for your response. But, I still need some clarification.
I've contacted several CA's. One CA sent a letter advising that the "the collection account has been closed at the request of the original creditor. No future collection action will be taken on this account.
Info from Credit Report
Date opened 10/2008, Reported Since 12/2008, Last Reported 12/2008, This account is scheduled to contine on record until Nov 2013 (Alabama SOL)
In this case above do I still need to attempt to contact the Original Creditor? and do i still need to have the OC remove this closed account from collections, and make payments to OC (everything in writing of course)?
I know that someone has to receive payment for this unpaid debt either the collections agency, original creditors. I'm confused on what to do if the CA states that "account is closed or charged off? what steps need to be taking when contact the OC? What measures am i looking for the OC to take?
Thanks in Advance for your assistance
the AL SOL does not have anything to do with the CRA reporting period of 7years which is set by federal law.
the CA can't "charge off" as the OC (original creditor) already did. I would dispute this with the CRA, if you already did then send an MOV method of verification letter to the CRA
reply
Hi,
Charge-off an account closed are 2 different things. Charge-off is when an account is handed over to a collection agency. This happens when a creditor realizes that they won't be able to collect the dues from you. However, the account can be closed on a creditor's request.
First, you need to check your credit report, whether or not the account shows zero balance. If it is so, then you will face no further problem. However, if it is not so, you may contact the original creditor and ask them about it. You can also send the letter of the collection agency as a proof. Other than this, you can also ask the collection agency to upgrade the account.
Hope this helps.
Thanks Cinnamngrl and Aaron.
You two have been very helpful. I'm new to this site so some of the abbrevations are confusing me?
CRA? is that Credit Rating Agency?
Im starting to confuse myself.
Still referring to the above bill.
After reviewing my credit reports. This bill is listed with Amcheck collecitons on my equifax report, and Amsher Collections with my Experian Report and not listed at all on my Transunion report.
I went ahead and contact the original creditor(doctors office). They've agreed to remove the bill from collections so, I can deal with them (OC) directly? However, they refuse to send me anything in writing? The OC is stating that once I make a payment it will take 7 days for them to send me something and for the collection ageny to send me anything.
I want to pay this debt its $147 but, I don't want to risk paying $147 and the collection agency not removing the line from account? what do you think?
Should I do anything about the two collections agency being listed on the same account? or can I do anything?
reply
Hi,
CRA is the Credit Reporting Agency. The 3 most common credit reporting agencies are the 3 credit bureaus - Equifax, Experian, TransUnion. They provide you with your credit reports.
You shouldn't go into anything without getting the settlements in writing. Two collection agencies are listed on the same account because, your account may have been handed over from one collection agency to another. You can contact the first collection agency and inquire into the matter.
Hope this helps :) .
Should I contact the original creditor again and advise that payment will be made but, i need somehting in writing stating that this account will be removed from BOTh CA's (Amsher, and Amcheck Collections) and payment in full will need to be update on all on all three (CRA) before payment is done?
The bill is for $147 and I'm planning on paying the Original creditor in full.
Thanks for your assistance.
Who do you send PFD too?
What kind of letter should I send PFD?
PFD letters are sent to CA only? or Can PFD be sent to original creditors and collections agency?
So, if im paying the original creditor "payment in full $147" I need to send a PFD to the collection agency? is this correct?
Also, I reviewed some sample letters on this website. Do you send certified payments in with PFD letters?
Let me know
PFD to creditor or collection agency
Hi Ericks,
A "Pay for delete" letter (PFD) can be sent either to the original creditor (OC) or to the collection agency (CA). If you are settling the debt amount with the original creditor, you need to send the PFD letter to the OC. However, if you are dealing with the CA, you need to send it to the CA.
You should definitely send certified payments with the PFD. After you make the payment, the OC will report it as "Paid in full" to the 3 credit bureaus.
You can contact your original creditor and tell that you are willing to pay only if they give you the written agreement. Send them a a certified settlement letter with return receipt. Check out a sample debt settlement agreement so that you'll know how to format it.
Thanks,
Aaron.
Okay, thanks Aaron.
Still a little confused. I need to send a letter to my Original creditor and advise that I willing to pay the amount in full only if they give me an written agreement?
So, with the sample debt settlement agreement letter. I send in the complete payment in full ($147 certified funds) without having received the approved written agreement from the original creditor?
Or do i send the letter to the original creditor first? then wait for an written agreement? then, submit payment?
Isn't this like paying them upfront (without the written agreement); without them sending me approval that they will remove the account from collections?
How do I know, or can be assured that once I send this letter to the original creditor with certified payments that the OC will have the account removed from collections? I don't want to have my account paid in full with the OC, and the collections accounts still remain on my credit report.
Tentative Debt Settlement Agreement Letter
Please review the Tentative Debt Settlement Agreement Letter. I intend on sending this to a OC for a debt. The terms they have agreed upon or listed in the letter. They need to give me something in writing agreeing to terms. Let me know what you thinK? or what I should change? All criticism is well needed and welcomed. I need all the help I can get.
Your Name
Your Address
Your Phone #
Creditor's Name
Department
Creditor's Address
Date
Dear Creditor,
Re: Account Number__________
In response to my recent conversation with your customer service representative, I'd like to present a complete overview of the verbal payment agreement quoted.
Unfortunately, I have a lot of debt and not enough funds to pay all my creditors. So, I'll be able to negotiate and pay debts with a few creditors only.
The final debt amount that we agreed upon is $__147.00______. As part of the payment agreement, your representative stated and agreed that, “you will co-ordinate with the ALL collection agencies (Amsher Collections and Amcheck Collections etc.), to remove all negative entries, late payments, inquires and collections listing from my credit report. Also, you will also coordinate that removals of these negative entries, late payments, and collections account will be reported to all credit bureaus (Equifax, Transunion, and Experian).â€
Once certified funds of $147.00 are received by your company, American Family Care, has agreed to update my account as “Paid in Fullâ€. Also, your company has agreed that they will remove ALL negative entries and inquiries, and ALL collections account, and collection entries (Amsher Collections, Amcheck Collections etc) accounts from my credit report, and report to all credit bureaus (Equifax, Transunion, and Experian) within 7 business days of receipt of certified funds.
I look forward to receiving a written confirmation from your end regarding the debt payment agreement quoted and terms as listed above. Once written confirmation from your company is received, and reviewed for accuracy of payment terms quoted above; I will be more than happy to submit certified funds payment in full of $147.00 to your payment address. Thanks so, much for your time, and forthcoming written confirmation.
Yours truly,
Your Signature
Your Name
reply
Hi Ericks,
You can send the above letter to the original creditor and request that you would like to pay the amount in full. They will give an answer to your request. Send the letter through certified mail and return receipt. After this you can pay them the due amount. If any problem occurs after this, you can use the copy of your mail, return receipt, their answer and your payment proof to dispute the item.
Hope this helps.
Regards,
Aaron.
ztwpHMfIRSqj
yzJiUk Very good blog.Much thanks again. Want more.
ELJZLTwKznLZZTNtY
RXZoW6 This is one awesome blog.Really thank you! Will read on...
ITKPYmqFUAXkS
cz5REn wow, awesome article post.