collections advice

[Richard25x]

Hey guys I'm sure this has been asked before but I've searched everywhere and I can't find the information I need so I hope you guys could help me.

I recently had an account go into collections which would make that 3 accounts in collections. I'm tired of being irresponsible and would like to get things under control and get the right path to a better credit.

1 account I know is mine. I know the amount adds up from the original creditor. I'm willing to pay in full, but I want to make sure it gets updated paid in full to all the agencies. So I guess I need some kind of letter asking for them to update when it's paid, and what I should do if they don't update the paid in full account. Would it be better to contact the original creditor?

The other 2 accounts are slightly older, but still within a year or 2 I think it would be better to get the accounts validated, could anyone recommend a good validation letter, what I should do they can't validate it? Any help would be appreciated greatly!

[drewc]

You can get your credit report, then flag the accounts that do not look familiar to you. It will be the responsibility of the company reporting the account to prove it within a small time frame.

For the account that it yours, just pay it. If it is still on your credit report, just flag it as already paid and they will investigate for you.

[Pari77]

I would always make sure to get any agreement in writing before I settled any debt. Additionally, I would negotiate the amount down because I imagine that if the debt was sold to a collection agency, it was sold for 50 cents on the dollar at best.

[Retired To Win]

Back in the day, I worked for a collection agency for a couple of years. I can assure you that most, most of the time the collectors that contact you don't actually have any legal documentation of the debt they are trying to collect.

The companies you actually defaulted on farmed out the collection to an agency for a percentage of recovery on a contingency basis. All they provided the collection agency was your billing record (who, what, when, how much) either on a computer file or as a hard copy ledger card. So, your first line of defense, if you will, is to tell the collector that you want proof of the debt. Then see what happens.

Also keep in mind that there is a statute of limitations on how old a debt can be collected. ALSO be aware that that clock gets restarted from your latest payment on that debt. So watch out!

[btctony]

For accounts in collections that you know are yours, I would send a PFD (Pay For Delete) letter. You offer them X amount of money and in exchange they delete it from your credit reports. Get it in writing.

I have no personal experience with collections, but I've been reading credit rebuilding forums for several years and lots of people have been very successful with the PFD letters. It's easier to get them to agree to remove it from your credit report before you actually pay them. After you've paid the collection, they have no reason to care. Once again, get it in writing.

For accounts that you are unsure about, you can send the collection agency a DV (Debt Validation) letter.

Get everything in writing. Never do a verbal agreement over the phone unless you just want to pay the debt and not worry about it being on your credit reports for the next several years.

I'm sure there are PFD and DV templates all over the internet. I know there are some in the credit rebuilding forum on the MyFico site.

[btctony]

Also keep in mind that there is a statute of limitations on how old a debt can be collected. ALSO be aware that that clock gets restarted from your latest payment on that debt. So watch out!

Question about that. Maybe you'll be able to answer it. I've always been curious about the legality of this scenario and have never been able to get a straight answer, but I've seen it asked a few times.

Collection agency bought an 11 year old debt. A collection agency sent a letter out. You never respond to the letter. SOL is 10 years. Is the collection agency within their legal rights to try and collect that debt? Are they legally able to report it to the credit reporting agencies if a person has never responded to any of their communication attempts or started paying the debt?

When does the clock start? Can the original creditor even sell the debt if it is outside of the SOL or does the clock start on the SOL on the date that the original creditor sells the debt to the collection agency?

[hamchan]

The SOL starts from the date of first default. It is ONLY restarted if you make a payment. Aknowledging the debt does not restart it. Sale to a new CA does not restart it. It is actually legal for them to attempt to collect and even file suit against you past the SOL. But all you have to do is show up in court, say it is past the SOL, and they lose. I have gotten calls about debt that was well past the SOL before, told them so and hung up when they tried to argue with me that I still owed it (legally, maybe so, but they have no way to collect it unless I paid voluntarily, so screw them) and I never heard from them again.

[hamchan]

Oh, they cannot legally put it on your credit report either after 10 or 11 years. If they do, report them and they have to remove it. You might even be able to take legal action against them, but it's not something I have dealt with so I am not sure. If not, you should be able to IMO.

[Permanent Temp]

For accounts in collections that you know are yours, I would send a PFD (Pay For Delete) letter. You offer them X amount of money and in exchange they delete it from your credit reports. Get it in writing.

I have no personal experience with collections, but I've been reading credit rebuilding forums for several years and lots of people have been very successful with the PFD letters. It's easier to get them to agree to remove it from your credit report before you actually pay them. After you've paid the collection, they have no reason to care. Once again, get it in writing.

For accounts that you are unsure about, you can send the collection agency a DV (Debt Validation) letter.

Get everything in writing. Never do a verbal agreement over the phone unless you just want to pay the debt and not worry about it being on your credit reports for the next several years.

I'm sure there are PFD and DV templates all over the internet. I know there are some in the credit rebuilding forum on the MyFico site.

This is great. I also recently inquire about the same thing. I'll be sure to send these guys a PVD letter as soon as I save up the balance to pay off the debt.