Cleaning my report up.

Submitted by Devildogjn on Mon, 03/30/2009 - 01:47
Forums

Ive been reading through all of the posts that I can, and now I start this topic just to make sure Im clear on everything.

Heres my situation....
Lost a good paying job a few years back. Got upside down on a lot of things. Last June I paid all of my collections except for 2. All of the collections that I paid report as paid on the credit file but it still shows up as a derogatory trade line. How do I get that changed? Is there any way to have it removed or do I have to wait the seven years from the time I paid them off?

The two accounts that I didn't pay pass the 4yr statute of limitations this year. One today and one in November. The one that expires in November is a repossession. What do I do with these accounts? Do I let them expire or try and pay them. The one that expires today is only $90. Last year I called the CA to have them send me a leter and an address to send my check but wasnt able to have any of that get accomplished. So I just forgot about it until now when I wanted to see what my scores are.

I have 4 positive credit cards all appraoching the 24 month mark with perfect payments. I plan on paying the balances down delow 50% next month to help my scores. So with 2 bad accounts and 4 positive accounts my score is still below a 600. I would like to buy a house by the end of the year if its possible.

Any help or suggestions would be greatly appreciated. thank you.

Yes, even if you pay off the debts it will still show as negative in your credit report for seven years and six months from the date you have made your last missed payment. However, the status will change to "paid". But if you had come to a pay for deletion agreement with the collection agency before you had paid off the debt, then the collection listing could have been removed from your credit report.

Mon, 03/30/2009 - 06:32 Permalink

If the statute of limitation on the debt has expired, you should not make any further payments towards the debt because you are not legally liable to the creditor or the collection agencies for the debt.
You should not pay for the debt which has already passed the SOL, but the debt for which the SOL is about to expire in Nov, you can wait for the debt to expire. However, if the creditor tries to recover the debt, you should pay it off, else they can bring judgment against you to recover it and if there is a judgment in your credit report, your score may fall further.

Mon, 03/30/2009 - 06:47 Permalink

JUSTIN........I understand the SOL thing. But, even if you're debt 'expired', how are you NOT "legally liable" for it anymore? Yes...maybe the SOL DID pass, however, it's still your debt. I hope I'm clarifying what I'm trying to say.

Mon, 03/30/2009 - 10:17 Permalink

The way I understand it is if the SoL has passed the CA cannot take any legal means to collect the debt ,and without any legal way to make you pay , you dont have to pay and there is nothing they can do about it.
however clarification on this would be nice.

Mon, 03/30/2009 - 13:35 Permalink
Anonymous (not verified)

Has any one been able to get paid collection accounts removed? I thought in one of the topics sombody had 3 items removed. I just wasnt clear on how they went about it.

Mon, 03/30/2009 - 13:39 Permalink
Anonymous (not verified)

Sorry but I have 1 more thing here. Will it help my score to get the paid collections to report closed and paid, not open account and just Piad in the comments?

Mon, 03/30/2009 - 13:45 Permalink

Ok today I called one of the CA that I paid off last year about reporting my account as closed and paid not open and paid, and she said that I have to dispute the information through the bearus. Is that correct and do I just do a regular account dispute, or is there somthing different for disputing just the info in the file?

I really appreciate all of your help that I am recieving.

Tue, 03/31/2009 - 03:40 Permalink

You can just dispute the item with the credit report by sending a dispute letter by certified mail. You may also send a copy of the proof that you have made the payment. The credit bureaus will list the account as "closed" after verifying it with the collection agency. You can find sample dispute letters if you visit the link letters of credit.

Tue, 03/31/2009 - 05:40 Permalink

What about the CA fist?..I thought it was the CA that has to agree to remove the Paid debt off of the CR, since THEY (CA) are the ones who reported it. Yea..if someone can clarify this, PLEASE do.

Tue, 03/31/2009 - 09:58 Permalink

Even if you do Dispute the piad itmes, through the CB's, I don't think you can have them removed unless the CA agrees to it..'Pay for Delete'..I think.

Mon, 04/06/2009 - 10:13 Permalink