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JesMLT
Joined: 14 Feb 2009
JesMLT's page
Posts: 16
645 Magic Points
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Subject: illegal to pay for delete????
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Sun Mar 01, 2009 6:37 am
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I had a collection agency recently tell me it was illegal to remove debts from my credit reports.
They called me and I told them I was aware they had already submitted the debt to the credit reporting agencies. I asked them for a pay for delete situation and the person I spoke with said that was illegal.
I said as far as I had researched that was most definitely not illegal and if they wanted to deal with me they should be expecting a letter asking to validate the debt from me first.
So, is it illegal for them to remove the debt from my credit reports?
And did I handle this situation in the right way? |
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cinnamngrl
Joined: 01 Nov 2008
cinnamngrl's page
Posts: 17
801 Magic Points
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Subject: not illegal, but also not an entitlement
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Sun Mar 01, 2009 3:47 pm
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The collection agent is playing you.
This is a very confusing area. Your credit report is actually paid publication. The federal and state laws that govern how your credit is reported are regulations to prevent companies from reporting debt without proper foundation or proof.
The main threat that a collection agency has against you is to file a civil lawsuit. In court, they can go after assets and garnish your paycheck. Also, a judgment can stay on your credit report for 20 years. This is very expensive for the CA, and they can lose the case if they don't have all the evidence the law requires.
Changing the way this debt is listed on your credit report is considered a mediated settlement. It is perfectly legal. The collection agent bought your debt for pennies on the dollar. These people don't get a salary. They get a percentage of money you pay on this debt. There is a good chance that the person that calls you six times a day doesn't get a dime if the case goes to court.
The big problem is that people are saying that you can get rid of all your debt with "credit repair". That is untrue. There is some backlash to be sure. The person that calls your house works at a call center. The collection agency pays big bucks to report accounts to the CRAs. The managers and owners may be getting more strict about what kind of settlement they will accept. Also the different companies selling debt to the collection agents must be frustrated with repeat offenders running up new debts after running their credit reports through the settlement washup.
This is why it is so important to go through all the steps. Have you made this collection agent validate this debt? Look through the forums and start with sending a CMRRR asking for proof that they own this debt, and proof that you signed an agreement to pay this money. Send them another letter stating, that although you are not acknowledging this debt as yours, you would be willing to pay a settlement as long as they agree in writing to delete the tradeline from your credit reports. Good luck. |
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Sun Mar 01, 2009 4:21 pm
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That's what I thought!
Yes I am working on getting a validation letter together.
Thanks for the information  |
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carol
Joined: 27 Jun 2006
carol's page
Posts: 1308
28489 Magic Points
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Mon Mar 02, 2009 6:47 am
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Pay for deletion agreement is not illegal and it depends on the creditor or the collection agency to agree to it or not. But, if they do not agree to pay for deletion agreement, you cannot force them to do so. Now, even if the creditor does not agree to pay for deletion, you should try and pay off the debt to avoid judgment, because judgment may adversely affect your credit score.
_________________
Keep in touch
Carol |
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ensurepune
Joined: 17 Feb 2009
ensurepune's page
Posts: 75
37 Magic Points
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Wed Mar 04, 2009 7:01 am
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JesMLT if you are sure enough that you will not loose the case in the court and have most of the proofs with you then i think you no longer have to worried about the CA.
Just ask them to go with all the legal procedures.Make sure they won't unnecessarily make you worry in the name of legal proceedings.  |
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