Need forum advice on Debt Settlement
Date: Tue, 08/14/2007 - 20:28
After a nasty divorce and a short bout of unemployment, here is the negatives on my credit report that I want to clear up.
- Repo with a balance of about $7200
- Bill for $96 from my divorce (with a CA)
- Bill for $521 from my divorce (with a CA)
- Bill for $2350 from my divorce (with a CA)
- Bill for about $900
- Bank account went bad for about $850 (with a CA)
Most of these accounts are charge-offs/ with collection agencies now. I have been making monthly payments for the repo and the $2350 bill for the last year.
I want to try and settle with all these companies and start to rebuild my credit. I just recently bought a new vehicle, but they financed me at almost 20%!! I want to be able to refinance that vehicle at a lower rate, but I am sure my past will prevent me from getting much better. My credit score is in the 540's for all three CRA.
My question is where do I start? When I negoiatate a debt is it possible to have it reported differently? And finally, how do I deal with these companies in the most positive manner to get the results I want without getting myself into more trouble?
I have read many posts and replies from these forums and I hope the answers I get are just as helpful!! Thanks for any info in advance!!
According to the FCRA laws, accurate negative items cannot be re
According to the FCRA laws, accurate negative items cannot be removed from the credit report before the seven years reporting time is over. But, you can slightly improve your credit by paying the accounts in full. Then, you can negotiate with the creditors to do a fair reporting on your file with the bureaus. The data furnishers provide information to the CRA. You can request them to remove the negative items from your file.
debtguy- whay not join us and register, it's free!! Bony is righ
debtguy- whay not join us and register, it's free!! Bony is right, if the items are accurate, they will stay. But if you can get your creditors to report paid in full, as opposed to settled, it will help
The sooner you can start paying these off, and get them reported as paid, the better. One word of warning, be sure and have them send you something in writing as to what they will settle for, and how they will report to the credit bureau.Good Luck..Keep us posted..KAren :D
Thank you both for your replies. I will have no problem paying
Thank you both for your replies. I will have no problem paying off the four bills, but the repo is the one that concerns me. I was hoping to settle that one.
Another question I have for you all....I have read conflicting information and I just want to see what I hear here. This refers to the infamous debt clock. Is the "debt clock" based on last activity date or when the debt was original posted? I ask this because once I pay off these debts, when does the seven years start to wait for them to drop off my credit report? The original date of deliquency or from the last activity date?
There is a SET date for when your 7 year reporting period begins
There is a SET date for when your 7 year reporting period begins and that date is SET IN STONE after the recent changes to the FCRA (Fair Credit Reporting Act).
If you are wondering how to figure it out, here is how you do it:
Remember the month that you last paid on the account.
Remember the month that you missed your FIRST payment on the account (and subsequently missed every payment after that).
Add 6 months (180 days) to that date (month and year as best you can).
Your 7 year reporting period begins the MONTH that is 6 months after your date of first delinquency.
Add 7 years to that month and year and that is when the listing SHOULD fall off of your credit report.
If an agency, ANY agency, has changed that date on your credit report in order to keep the listing on there longer, it is illegal. Not only is it illegal for them to change it, it is illegal for the CRA to allow that change to be made.
NOTE-This is only applicable to those accounts which began reporting AFTER 1997.
****but remember**** whenever you make a payment on a collection or a charge off, the seven year clock starts all over again and the item will be reported for seven more years from the date of payment. If you never pay a collection then it will disappear seven years after the time you last made payment on the credit card that resulted in the collection.
So in retrospect, sometimes it is better NOT paying on the old debts and collections on your report.
Ok mca i have a question plz... this is what u state in ur first
Ok mca i have a question plz... this is what u state in ur first paragraph: Quote:
Remember the month that you last paid on the account. Remember the month that you missed your FIRST payment on the account (and subsequently missed every payment after that). Add 6 months (180 days) to that date (month and year as best you can). Your 7 year reporting period begins the MONTH that is 6 months after your date of first delinquency. Add 7 years to that month and year and that is when the listing SHOULD fall off of your credit report. If an agency, ANY agency, has changed that date on your credit report in order to keep the listing on there longer, it is illegal. Not only is it illegal for them to change it, it is illegal for the CRA to allow that change to be made. |
Then at the bottom u put this: Quote:
****but remember**** whenever you make a payment on a collection or a charge off, the seven year clock starts all over again and the item will be reported for seven more years from the date of payment. If you never pay a collection then it will disappear seven years after the time you last made payment on the credit card that resulted in the collection. |
So, which is it? It is ILLEGAL for a CA to reage a debt and if u pay on it and they do indeed reage it u can sue them! Make a copy of ur report with the original deliquencey date then after u pay if they change the date, hire an atty! This is illegal!
I'm not sure where u've seen this information but if u can plz show me where it says a CA can reage a debt once u pay on it.
Thanks,
Ang
