     Eric H (Thered) | Tuesday, February 20, 2001 - 06:15 pm 
In planning to attempt a mortgage in a few months, I'm getting started on cleaning up my reports where I can. I've read quite a few postings on this board and have some idea of what lies ahead.
There's one bone fide mistake -- I'm taking that up with the creditor first even though it's been charged off. There are a couple collection accounts -- I'm going to offer to pay in full after receiving in writing from a company representative an assurance that they'll have their listing removed as it's "an error." (I know this might not work, but I've got to try.)
The one that has me perplexed is a repo. My ex-wife was 'responsible' for the loan payment (read this as "in my name, but she said she'd pay it"). She didn't, I couldn't (I'm a single parent and not exactly a font of cash) and they took the truck in 1996. None of the reports list it as a "reposession", all say "charge off". All 3 have the amount incorrect, one gives the original loan amount (12,000) and the other two give the balance prior to repo (8,000). I have in my files letters from the lender stating the truck had been sold and that the balance was 4,000 (in 1/1997).
So, do I...
Play it straight? = Send a copy of the letter to the CRA's and have the item corrected to show the right balance and as a repo.
Try to win the lottery? = Send a letter to the CRA's claiming I recall that I'd paid that off and the item must be a mistake, hoping the bank could not respond within 30 days on a 5-year-old loan. (A bonus: the bank has been sold twice in that time.)
Or, Come out swinging? = Get a lawyer to fire a letter at the creditor demanding full documentation on the whole affair. If they can't produce paper records, report the vehicle as stolen. Use all evidence against them in the "court of CRAs".
I feel really stupid cleaning up this mess -- sorta like a very smart bird in a dirty cage. I did all this to myself but was too distracted/angry/dispondent at the time to care.
Anyway...any opinions will be valued. |
| Erik (Erik) | Tuesday, February 20, 2001 - 07:05 pm
I don't think a charge off of $4000 will look a whole lot better than a charge off of $8000 or $12000.
I think most real estate loans require you to pay any collections that are on your report and I've always figured that applied to charge offs as well but I'm not sure about that. Maybe someone else here can tell you if it will look better for you as a repossession than a charge off. I really don't know.
If it were me I would try the lottery method first and see where that gets me. If they come back verified then you could either try negotiating the removal of the items or come out swinging. If you come out swinging or make multiple lottery attempts I would think that might take more than a few months even if does work. |
| Dan Tembe (Dtembe) | Wednesday, February 21, 2001 - 05:11 am
Eric H.
Just wanted to add my .02 in.
I have been working on cleaning my credit up for the last 6 months. I used a lot of tips and advice posted on this forum. It has been working for me.
The steps I am taking are as follows:
1) Asked the CRA to wipe off the accounts since they appear to be posted on my credit report as a mistake, error or unknown. Had a lot of luck.
2) If it came back verified, I would wait for a couple of months and then have them reinvestigate the account. I have been lucky, in which I have had a couple of accounts get wiped off this way.
3) Now that I am done disputing all the accounts with the CRA's, and some of the accounts have come back verified, I am sending the creditors letters demanding full documentation of the account. I am using a post by Shylock to format my letter:
=Cut and Paste from Shylock's Post======================
I have no records of or personal recollection of the debt.
Please provide me proof of the debt. Please be aware that bills issued by a company will not be considered proof of a debt. Only copies a signed promissory note will suffice. You should include the front and back of the note and any allonge that may accompany it. A notary's statement and jurat would also be helpful.
Please also document the entire payment history, first date of delinquency and all other relevant facts regarding this account.
Sincerely,
=================End================================
4) I will follow up with the creditor and make sure that the CRA is notified of the outcome of the dispute with the creditor.
5) Once this process is done, I will try to get a lawyer to send dispute letters to the creditors and see if that helps.
6) Last step is negotiating with the Collection agency to pay a percentage to wipe of the account from my credit report.
I tried contacting Lexington Law Firm to see if they will send letters to creditors but all they keep sending me is the same email on how they can help me by disputing accounts with the CRA. I don't need help disputing accounts with the CRA.
If anyone knows any law firms that will actually send letters to creditors please email me their email address or links to their website.
It is a long and a tedious process but I have already been able to refinance my car with my Credit Union ( they had turned me down in Oct'2000 for too many derogatory accounts) and have gotten a couple of unsecured Credit Cards in the process.
Anyway, Eric, I just wanted to let you know the approach I have been taking the last 6-8 months.
I have letters that I drafted in Word 2000 format that I can email anyone who wanted to use them.
I hope this will help you, in making your decision, on how to clean that repo off your account.
Dan |
