Collection Accts on credit report
I had a couple of credit cards that I defaulted on when I lost my job back in 2009. They have each been turned over to collection agencies.
I'm back on my feet again and would like to try and clean up my credit score.
How do I best go about this? Do I pay the collection agencies? Do I pay the original debt holder (the card company)? I want to do this in a way so the accounts will reflect as paid in full on my credit report.
If the account was assigned
If the account was assigned to a CA, you can contact the original creditor, explain that you want to make good on the account and see if they will agree to have the account recalled from the collection agency so that you can pay them directly. Explain to them that you want to have the item removed from your credit report and are asking for an act of good faith.
With most major credit cards, this is NOT going to happen. Accounts are assigned to CA's under contract, whereby the creditor agrees not to intervene without cause. (Like a documented FDCPA violation) They cannot recall an account without cause either. Pay for deletes are not going to happen either. Good will is usually given to a "good" customer to keep their business. If you are in collections you are not considered a good customer nor do they want your business. There is no benefit for them.
It has been my experience that once they accept the payment, the account is automatically recalled from the CA.
Maybe for ultility accounts like you are talking about, but again, not for credit cards.
(2) If the account is sold, you go to the CA and explain to them that you are in a better position, etc. and that you want to pay the account if they will agree to remove the item from your credit report. Tell them there really is no benefit to you paying if they don't remove from your CR. Again, this is going to cost you the full amount of the debt. It has been my experience that the CAs won't put this in writing so this is where you need to download a phone recording app and get them to agree to it verbally.
This stategy could also get you sued. PLUS this does not for the charge off tradeline for the original creditor. So in a sold situation, if you have to pay it, settle it for as little as possible.
OK, if what everyone is
OK, if what everyone is telling me is correct, then a charge off from a credit card company that was subsequently sold is on my credit report for 7 years, no matter what I do. Correct?
I had an HSBC account and HSBC got out of the credit card business. Sold my account and the associated receivable. HSBC had charged it off before selling. If I work something out with the buyer, say pay for delete, can they remove the HSBC listing or is that stuck there?
Why would I even try to work
Why would I even try to work something out with the collectors if it does nothing to help my score? Wouldn't I be better off going back to the original debt holder?
So once it becomes a
So once it becomes a collection account, there is nothing I can do to help my credit report? If the outstanding debt was sold, there is nothing I can do to help my credit report?
You can.....but you are going
You can.....but you are going to have to pay the debt. The first thing you want to do is validate the debt so you can deteremine if the account has been assigned to the CA or sold to the CA. If the account was assigned to a CA, you can contact the original creditor, explain that you want to make good on the account and see if they will agree to have the account recalled from the collection agency so that you can pay them directly. Explain to them that you want to have the item removed from your credit report and are asking for an act of good faith. It has been my experience that once they accept the payment, the account is automatically recalled from the CA. After I submitted payment, I followed up with a goodwill letter confirming the payment and requesting the item to be recalled and the CA instructed to remove the listing from my credit report. You will have to pay the full amount due in order to get them to delete the item. I have yet to find anyone that will accept less than full amount and delete the item. The items fell off my credit report within a couple of days. (I was able to do this with both AT&T and DirectTV.)
(2) If the account is sold, you go to the CA and explain to them that you are in a better position, etc. and that you want to pay the account if they will agree to remove the item from your credit report. Tell them there really is no benefit to you paying if they don't remove from your CR. Again, this is going to cost you the full amount of the debt. It has been my experience that the CAs won't put this in writing so this is where you need to download a phone recording app and get them to agree to it verbally. I know a lot of people say that this is not a good idea but I have had success with this and just like they record the conversation, I do too. I had a defaulted SpeedyCash loan go to Ad Astra Recovery. I went through the whole process of validation, etc trying to shake them for over a year and a half. I got nowhere. (Legal PDL in Texas) They did agree to work with me - I could either pay a lesser amount and they would just mark the account paid (paid collection is no good), or I could pay the full amount and they would delete it from my CR. Within 2 days of me making the payment, it was deleted off of my CR with all three CRAs.
So, if you really are trying to clean up your credit report, it is most likely going to cost you. If the debts are legal (not illegal PDLs, etc.), I have never been able to get it off my CR by disputing, validation, or not paying the full amount. I have resolved all of my negative issues except for Western Sky/Cash Call this way. They are an entirely different animal (illegal tribal lender) and it will be a cold day in hell before I cave in to them......they are killing my credit score, but this one I will fight as long as it takes.
This probably isn't what you want to hear, but hope it helps.
do not pay any collections. i
do not pay any collections. i got scammed by paying a cash advance i took out indians were calling me and took over 1000 from me i needed help so i turned to consolidation with www. 123settlement .com 8883666602 cost me NOTHING
If the accounts are in
If the accounts are in collection, you pay the collectors. Just so you know, paying a collection account does nothing positive for your score. Keeping that in mind and also the fact that you might still wish to pay on the accounts, you need to do a couple of things first. Check to see if the debts are past the state SoL. If they are, they cannot be legally collected upon so you might want to skip out on those. If the accounts are within the SoL, you might want to negotiate a settlemnet with the collectors.
If you do not pay and the JDB
If you do not pay and the JDB that 'bought' your debt which they can collect on legally, they just might choose to sue you. That would mean a judgment on your report, your score sliding further, your bank account(s) levied and your property liened. So yes, things can always get worse. Just sayin'
well
if the debt was assigned then it can be recalled,but alot of debt is sold to JDB'S(junk debt buyers)if that's the case then you never pay without proper validation.hope that helps as there is a difference.
Your account is a collection
Your account is a collection account. Paying a collection account will never be reflected postively on your credit report. If the JDB chooses to sue you, you can fight it....most have no proof of the debt and are pretty easy to win against in court.
Who is the original creditor and who is collecting it now???
Noting is going to remove the
Noting is going to remove the HSBC listing. The buyer has no ability to negotiate a pay for delete for the original creditor.
Hi Borrower,
Hi Borrower,
The fact that it remains isn't the end all be all. What your future lenders are looking for is resolution. Most lenders will not lend to you until your delinquent accounts are resolved or fall off your credit report. It's not as bad as you think. :)
If it was assigned to
If it was assigned to collection agency then, I can go back to the original debtor an work something out with them? If it was sold to JDB, what do I do? I don't want to pay unless I can get something positive on my credit report.
Just sharing my experiences
Just sharing my experiences with successfully removing collection accounts from my CR. Soap Lady is correct, I don't have any experience with a credit card company charge off/collection so maybe those work differently. Again, I find that it helps to remove the attitude and tone and be polite and courteous. This approach makes people want to help you out and work with you a lot more than being defensive and a complete nightmare.....just my two cents.
Borrower, I'm assuming your
Borrower, I'm assuming your ultimate concern with your question is how long till you acquire new credit again?
And the answer to that question is fairly simple and straightforward.
Most creditors, and pretty much all A lenders won't lend to you until ALL of your delinquencies are resolved.
Outside of bankruptcy, resolution can be achieved by paying off the accounts, settling the accounts, or re-aging (assuming they aren't charged off) the accounts.
Generally within 2 years of resolving all of your delinquencies you will begin to acquire new unsecured credit again.
My clients have reported their experiences ranged form 6 - 18 months after completing my service.
Anyway, it will be like you're 18 again. You'll start off with department store cards typically with $300 - $500 credit limits. Then you'll grow your credit again from there.
Generally speaking, once all of your delinquent accounts have been satisfied for 2 years, you'll also qualify (credit wise) for a conventional mortgage. And if you wanted to buy or refinance via FHA, you would generally qualify after 12 months.
Feel free to follow up with any questions.