     Elaine | Thursday, December 09, 1999 - 02:24 pm 
I just received my credit report and there is a charge-off from 1/96 listed that I need to pay. I faxed a letter to the creditor today stating that I would FedEx them the full amount today, and asked if full payment would warrant them not disclosing the negative entry. I did not get a return call back from them as of the close of business today.
If I don't hear from them, should I send the payment with a restrictive endorsement? What, if any, correspondence should I forward to credit bureaus if I don't get a response in return?
As an aside, we have had perfect credit since 5/96. We are now beginning the househunting process, and need to clear this entry.
If anyone has any suggestions on how to handle further, I would most appreciate it. Christine and everyone else, I have learned much from your posts and information. Thanks for offering this website. |
| rcb | Friday, December 10, 1999 - 03:06 am
If you are adamant about getting the item removed from your credit report, don't send them any money until you have an agreement in your hand, on their letterhead, stating all the details (You pay, they will removed, etc.). If you don't, then they'll more than likely take your money, *maybe* update the report to show that it's paid and you'll lose all your leverage. Once you pay, they won't spend any time 'fixing' anything for you, because they have nothing to gain.
Specifically ask for a letter, signed by an authorized agent of the company and on the letter head of the company that's listed ON YOUR CREDIT REPORT, stating that, if you pay, they will COMPLETELY remove anything and everything pertaining to this debt from ALL of your credit files (TU, Experian, Equifax).
In speaking with each of the bureaus, I was told that if you have that in your hand, then you pay them and they DON'T do as agreed, all you have to do is send a copy of the agreement and proof of payment and the bureau(s) will remove it.
I would not offer full settlement. I would have started at 50 cents on the dollar, and let them counter offer. If they aren't currently getting any money from you (garnishment,etc.), most places are willing to accept less than full amount as full settlement.
Be aware, though, that not all creditors are willing to REMOVE the trade lines/collection information/judgements from your credit reports. Out of 8 or so old, old collections, charge-offs and such, 2 of them absolutely would NOT remove the derogatory info from my reports (they simply changed the status to PAID/WAS COLLECTION).
Remember - you hold the upper hand until you pay them - then you lose all your baraining power. And no matter what, get it IN WRITING -- before you do anything. |
| Sean | Friday, December 10, 1999 - 07:48 am
Restrictive endorsements are a waste of time. I recommend sending them an unsigned check along with an agreement for them to sign. The message? You sign my piece of paper and I'll sign yours. |
| Elaine | Friday, December 10, 1999 - 11:39 am
Thanks to both of you for your responses. I just got a voice mail when I came back from lunch from a supervisor there, and he said he can't find my account. Just left him a message so waiting to see what he says. On another post, if I understand correctly, if they can't find my account history, and I receive a letter from them saying same, the bureaus would delete this if I forwarded the letter to them? I'm a major novice, so if I'm incorrect, it won't hurt my feelings! |
| paul | Friday, December 10, 1999 - 11:55 am
The first step is to ALWAYS dispute the entry with the credit reporting bureaus; just like your situation, many creditors just can't figure out who you are and when they receive a dispute notice from the CRA, they don't respond and the entry is disputed. Do all of your negotiating in writing, keep good records of your efforts... and don't pay for anything that will continue to destroy your credit... unless that is your only recourse in getting a house...
-paul |
| Charlie | Saturday, December 11, 1999 - 06:21 am
I agree with Paul.
I had a couple of collection items I was going to have to pay to get a mortgage. The collection agency couldn't find the,m and was uncooperative -- so I disputed them, they vanished, and I saved about $1300.00. |
