PLZ HELP: CA damaged my credit report

Submitted by Anonymous (not verified) on Thu, 12/04/2008 - 04:32
Forums

Hello all, I'm a NEWBIE but I've done some research about CA's and Credit Reports, and it seems like everyone's fighting approach is different, so plz take some time to read my story and help me out.. THANKS IN ADVANCE!!!

In August 2008, I started getting unknown calls from Cavalry Portfolio Collection Agency. When I called them back, one of the operator picked up and identified my personal information such as name, SSN, and address (surprisingly they were correct). They told me that I owe about $350 from Sprint mobile services and were insisting me to complete the (debt) payment. I asked them how they got my information and it was the Sprint which sold my debt to Cavalry.
Do I own a Sprint account? Well, YES... I opened my account in September 2004 but then had to 'freeze' my account in April 2006 (was out of country for 2 years), so I called the Sprint customer representative, explained my situation, and was able to freeze it with no doubt. As far as I know, there shouldn't be any incurring fees (which the customer representative didn't mention as well), becase my service worked like a pre-paid phone (no billing statements). So I came back to the States in May 2008, and was horrified to find out what happend in my credit reports. By the way, I wasn't aware of this debt until their first phone call in August...no billings, no calls until then (before I left, I had forwarded anything that's for me to my parents house in case)

Here's what the three credit bereaus say:
Equifax
CAVALRY PORTFOLIO SERVICES
Agency Address: 7 SKYLINE DR 3RD FLOOR
HAWTHORN, NY 10532
(800) 501-0909
Date Reported: 10/2008
Date Assigned: 03/2008
Creditor Classification: Cable/Cellular
Creditor Name: SPRINT PCS
Accounts Number: XXXXXXXX
Account Owner: Individual Account.
Original Amount Owned: $319
Date of 1 st Delinquency: 12/2005
Balance Date: 10/2008
Balance Owned: $354
Last Payment Date : N/A
Status Date: 10/2008
Status: D - Unpaid
Comments: Consumer disputes this account information

TransUnion
CAVALRY PORTFOLIO SVCS #12541737
7 SKYLINE DR 3RD F
HAWTHORNE , NY 10532
(800) 501-0909

Balance: $355 Date Updated: 11/2008 Original Balance: $319 Original Creditor: 11 SPRINT PCS Past Due: >$355<Pay>Collection Account< Account Type: Open Account Responsibility: Individual Account Loan Type: Collection Agency Attorney Remark: Account information disputed by consumer
Date placed for collection: [ 03/2008] Estimated date that this item will be removed: 11/2012

Experian
CAVALRY PORTFOLIO SERVIC
Address:
PO BOX 27288
TEMPE, AZ 85285
(800) 501-0909
Account Number: XXXXXXXX Original Creditor: SPRINT PCS
Address Identification Number: 00XXXXXXXX

Status:
Collection account. $355 past due as of Nov 2008.

Date Opened: 03/2008
Date of Status: 06/2008
Reported Since: 05/2008
Last Reported Date: 11/2008
Type: Collection
Terms: 1 Months
Monthly Payment: $0
Responsibility: Individual
Credit Limit: $319
High Balance: N/A
Recent Balance: $355
Recent Payment: $0
Account History: Collection as of Nov 2008, Oct 2008, Aug 2008, May 2008 to Jul 2008

Your Statement: Account information disputed by consumer (Meets requirement of the Fair Credit Reporting Act).

:cry: :cry: :cry:

At first, I checked out my local Sprint store and find out that it's gone and out of business. Then around september 2008, I sent Cavalry a validation notice of this debt (hand-written, return receipt, certified), and they sent me one letter which is nothing but a payment plan (like if I pay by xx/xx/2008, I'll get 20% discount). So I sent them a second validation notice, and it's been more than 30 days but haven't heard anything back from them. My GOAL is to remove what's on my credit report, regain the score as if nothing happened, and to get away from CA's completely.

So here are some questions I would like to ask:

1) First of all, I find something suspicious about my credit report.
-The reports say Date OPEN: March 2008, Date of 1 st Delinquency: 12/2005, Estimated date that this item will be removed: 11/2012
Are these dates correct according to what I have provided?
-There's a collection activity in November (Experian), and I mentioned to stop all collection activities in my validation notice, isn't this illegal?
-Cavalry tried to contact me through cell phone, isn't this illegal as well?

2) Since they failed to provide proof for the claim, I'm going to dispute with the Credit bureaus. If I succeed in deleting these off my credit report, how can I make sure that it doesn't show up in the future again, or prevent Cavalry from selling my account to another CA?

3) My credit score was perfect (cuz I'm young) before Cavalry reported, so by deleting them, would my score be back to perfect again (not necessarily high, but back to where it was)?

4) How can I make sure that identity theft doesn't happen?

I know this is such a long post... but I'm desperately looking for some help...
Thanks again guys!

1) First of all, I find something suspicious about my credit report.
-The reports say Date OPEN: March 2008, Date of 1 st Delinquency: 12/2005, Estimated date that this item will be removed: 11/2012
Are these dates correct according to what I have provided?
-There's a collection activity in November (Experian), and I mentioned to stop all collection activities in my validation notice, isn't this illegal?
-Cavalry tried to contact me through cell phone, isn't this illegal as well?

"Collection activity" is legally reported on your report. That is simply a statement as to the type of account it is, and little else. If you sent your validation notice after it was reported, and not upon receipt of their (required) letter, indicating that you had 30 days to dispute the account, they aren't required to cease reporting the info. They can call you on any number they have for you... Even cells... Until/Unless you ask them not to. This can be done over the phone the first time, and that buys you 5 days to send them something in writing, asking for no further telephone contact.

2) Since they failed to provide proof for the claim, I'm going to dispute with the Credit bureaus. If I succeed in deleting these off my credit report, how can I make sure that it doesn't show up in the future again, or prevent Cavalry from selling my account to another CA?

You can't really prevent them from re-reporting (assuming they have the necessary information and unmitigated gaul to do so). Neither can you prevent them from re-selling it... Odds, are, they will. But with each new company, the collection efforts are weaker, and the likelihood of CA success is slimmer, and they know that...

3) My credit score was perfect (cuz I'm young) before Cavalry reported, so by deleting them, would my score be back to perfect again (not necessarily high, but back to where it was)?

Your score will likely go back up upon deletion of the account, but there's no guarantee it will go back to precisely as high as it was...

4) How can I make sure that identity theft doesn't happen?
Shred your info, limit online purchase/transactions to sites that are as secure as technology allows, and check your credit regularly...

Thu, 12/04/2008 - 13:03 Permalink
ntoxicated (not verified)

Thanks for your comment, you pretty much answered all of my questions!!

I'm going to send a dispute letter to Credit Bureus next week, but I wasn't able to find a good sample letter that's really RELEVANT to my case...(Most are about disputing account that doesn't belong to the person, but in my case, I'm disputing it because Colletion agency failed to provide valid proof of the debt)

Could you recommend me some?

Thanks in advance
George

Fri, 12/05/2008 - 05:54 Permalink

Well ntox, Doc gave you some really great information here. He is coreect that they will probaly resell the debt. This usually happens once they fail to collect on it. Once you send them a cease and desist letter and they can not prove this debt (and they know they can't) they will resell it and you will more tha n likely go through this process again. Collection efforts do often lessen as the time goes by.
I see your deliquency date is 12/05. This makes your debt approx. 3 years old. What state are you in so we may check the statutes of limitations for your state (the one you aquired this debt in). There are dispute letters here at the forum. Just do a forum search on "dispute letters" and you should find plenty. Pick one that best suits your purpose.

Fri, 12/05/2008 - 16:50 Permalink
ntoxicated (not verified)

Well, I'm not sure what state would be...
I created my sprint account in MI, I live in NJ, and the CA's office is in NY..

Sun, 12/07/2008 - 05:21 Permalink

Since the account was created in Michigan, MI would be considered for the Statute of Limitation on the debt. The CA's office may be in any state, but only the state in which the account was opened will be considered. If you want a sample letter which you need to send to the credit bureaus, you can find one if you visit the link letters of credit

Mon, 12/08/2008 - 11:59 Permalink

The SOL applies to the state in which you CURRENTLY live... Nothing else matters! Moreover, if anyone tries to serve you/sue you anywhere else, you can have it moved to your home (area).

Sat, 01/10/2009 - 20:32 Permalink

Doesn't that require making a trip to the courthouse that issued the summons? There was a discussion on this very matter on another post and the poster was told they would have to go to that court house file a response to the summons and then file a change of venue. Is this the correct way to proceed or is there a way that the person that was served the summons could take care of it in their state?

Sun, 01/11/2009 - 04:09 Permalink

Hi Ntoxicated
The Statute of limitation in both Michigan and New Jersey is six years for all types of accounts and it starts after six months from the date of your last missed payment. Normally, the SOL applies to the state where the loan agreement was signed between you and the original creditor. It does not matter where the CA office is located at in determining your SOL.

Mon, 01/12/2009 - 09:42 Permalink

Justin, why is it that some people say its six months from the date of your last m issed payment and others here will say it starts ofter the date of last activity (or first missed payment). Doc you have been dealing in these matters first hand, coulod you add some light here and let us know which is the correct answer?

Mon, 01/12/2009 - 23:49 Permalink

If you consider the negative listing in your credit report, it gets reported to the credit bureaus after 6 months from the date you first miss the payment and so the Statute of Limitation also starts after six months from the date of the initial missed payment. This is because, the creditor considers a debt as a bad debt only if there is no payment for a continuous period of six months. So both the borrowers and creditors get 6 months extra. Borrowers get the six months to pay off the debt so as not to be reported to the credit bureaus and the creditors get six months more to claim the debt as the SOL period increases by six months from the date of the last missed payment.

Tue, 01/13/2009 - 09:04 Permalink
Marie (not verified)

Hi. How long do utility collections report on your credit report? Which state's SOL do I use to try and remove outdated information, the state in which the debt occured or the state in which I currently live?

Wed, 09/09/2009 - 05:15 Permalink

Hi Marie

Which state's SOL do I use to try and remove outdated information, the state in which the debt occured or the state in which I currently live?

The state in which the debt occurred.

How long do utility collections report on your credit report?

Normally they stay on your report for 7 years. You may avoid them from getting in to your credit report by being regular on payments. Utility companies do not affect your credit report when you pay on time but will definitely hurt your score if you don't pay up. If you are delinquent, they will first give you some time to pay. If you still don't they will turn the debt to a CA who will then report the debt to the bureaus. This will definitely bring down your score. So avoid them going to the bureaus by paying them off in time.

Wed, 09/09/2009 - 12:25 Permalink

Carol... The statute of limitations on the current state of residence is the only one that matters... Where the debt was incurred is of no consequence...

Wed, 09/09/2009 - 12:39 Permalink

True Doc, that's what happens generally. It would also depend on the state OP lived and lives in. However, there are exceptions. If the SOL on the state in which the debt occurred has passed in that case that SOL will be effective.

Wed, 09/09/2009 - 12:51 Permalink
crorkz matz (not verified)

Ca4qhE Really informative blog.Really thank you! Awesome.

Mon, 08/04/2014 - 22:23 Permalink