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Thread: Disputing credit

  1. #1
    Peanut_Butter
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    Default Disputing credit

    Correct me if I'm wrong please...

    Anything on my credit report that had last activity more than 7 years ago should drop off, correct?

    So if anything is on there from 2001 or later, I can dispute it?

    Now, my question is, what is last activity? Many collection accounts are sold and resold, bumping up that last activity date.

    What defines last activity on an account?

    What if the last activity with the origional creditor was in 1998, but the sold my account to a collection agency in 2005. Does than mean 7 years from 2005, or from 1998?


    Thank you

  2. #2
    Peanut_Butter
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    Default Re: Disputing credit

    More questions please.

    I got my credit report for all 3 agencies. My credit score is between 470-500, depending on which agency. I have 38 negative accounts on my credit and 13 good standing accounts. My total debt is $60,000. $10,000 of it is a car repo that should be removed from my credit this month. $28,000 is in student loans that are in good standing. The rest are medical bill collection agencies or other random collection agencies.

    What is the best way for me to go about cleaning up my credit and raising my score? Is bankruptcy the best solution for me? I am no longer dancing, so do not have the income to even dream of paying this down quickly, but if I joined a credit counseling agency and set up a payment plan for 5 years, that would be doable. Would it be better to do that, or file bankruptcy?

    I just want to start rebuilding my credit and being more responsible for myself. I have really fucked up from 18 till now, and it's time o grow up and be an adult. But where to start? What's the best path to take?

    Thanks

  3. #3
    Banned Melonie's Avatar
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    Default Re: Disputing credit

    chapter 13 bankruptcy and credit counseling are interpreted by lenders with equal negativity. However, the chapter 13 bankruptcy has the force of law behind the settlement of your debts, whereas the credit counseling only has the voluntary concessions of creditors. If you are going to default in any case, I'd recommend chapter 13 bankruptcy over credit counseling.

    As to the seven year limit, yes this is true on the surface. However, creditors often have a way of 'resetting the clock' i.e. a voluntary renegotiation of a 6 year old debt can count as a 'new' debt with a fresh 7 year clock. This is another reason to consider chapter 13 bankruptcy since it resets all the debt clocks to the same point in time.

  4. #4
    AudreyLeigh
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    Default Re: Disputing credit

    I agree with Mel. Ch 13 is the best way to go.

    Student loans are not considered bad debt - just remember that! - and you cannont bk them.

    So, youre 30k in debt - $10k in the car that should fall off. If it doesnt call the comapnies.

    Heres the numbers. All you do is call the agencies with a recent copy of your report. You say you want to dispute whichever debt and then tell them why. Theyll start an investigation and give you the results within 30 days.

    I just had one last debt removed from my CRAs yesterday... NCO financial and theyre the hardest to get off. Just be polite to the person youre talking to at the CRA.

    TransUnion: 800-680-7289
    Equifax: 866-238-8067 (this worked yesterday)
    Experian: 800-493-1058

    That really leaves $20,000 in debt which isnt that bad...

    Another thing Ive been doing is calling the original creditor - telling them that i am not going to pay the collection agency but i will pay THEM and they have to take it out of collections (thus cleaning up the report) I did that with 2 debts of my husbands - AT&T and Comcast....both are now off his CRA. They just told the collection companies that it was sent to them by mistake...

  5. #5
    Peanut_Butter
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    Default Re: Disputing credit

    But if that only leaves 20k in debt, isn't that a small amount to go bankrupt over?

    I will start calling the origional creditor and ask to pay them directly if they remove the collection agency, and remove the bad account after I pay them. Stupidly, I have about 10 collection agences for debt under $100. So I can pay one of those each month, and that would clean up my credit conciderably.

    I am also going to go to the hospitals today that I have collections with and ask them for the charity forms to see if I can get assistance p[aying some of that off. That will boost my score up again.

    Then I'm not left with too much bad debt at all, and I think my score would be high enough for me to start just piling good credit on top of the remaining bad stuff. Like getting a secured credit card and slowly building good credit.



    Well, I've been reading the credi boards on why chat, and I think the first thing I'm going to do is just ask for verification of the debt and see what comes back. Of course this can open me back up for collections, but if I want to clean up my credit, I'm gunna need to do that anyway one way or another.

    thanks for the advice.

  6. #6
    Newbie WineSnob's Avatar
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    Default Re: Disputing credit

    Last Activity is 7 years + 180 days, and is defined by the last payment made and/or any renegotiation. If your account was sold over and over, it does not reset the last activity date. This is Federal law. If it is reset only because of the account being sold off, you can easily dispute this.

    Generally speaking, if you have outstanding deliquent accounts, and NO ACTIVITY on them for 4-5 years (e.g. you just walked away from them, and no payment whatsoever for 4-5 years), it's best to just forget about it and wait out the 2-3 years. If you are coming up on 7 years of no activity of any kind, definitely forget about it!

    It looks like you have 20k ish in delinquencies. There are a lot of people who are far worse than that.

    Just be a good girl and pay your current accounts like a good girl (why so many? 13 is too many!), pay your student loans like a good girl, check and see which of your deliquent accounts are aged enough (close to the 7 years). The CRA's weight more heavily recent history. So be a good girl.

    Get a reputable professional credit disputer. You might be amazed at how lazy the creditors are in actually verifying a disputed account. You might be able to get half of the 38 (damn 38! wtf?), wiped off very easily.


    Bankruptcy is like Herpes. You have it forever. It might be on your credit report for "only" 10 years, but that doesn't mean it isn't part of the public record. Avoid it at all costs.

  7. #7
    AudreyLeigh
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    Default Re: Disputing credit

    But if that only leaves 20k in debt, isn't that a small amount to go bankrupt over?
    Yes, it is a very small amount.

    First thing you do is dispute items on your CRAs.

    Do NOT tell them it is a legitimate debt. Do not start negotiations with the companies unless youre willing to pay them off (because these negotiations WILL restart the 7 years). From my experience to have charity cover it has to be done within 30 days... youre sol on that not to mention if you call about charities for old debts and you cannot get them you are going to restart the 7 years.

    If you are willing to pay a debt call the original creditor and tell them you didnt know about it (whatever) and that its gone into collections, you thought you paid it - its only $100 and you would prefer to pay them, etc and ask if they can take it out of collections thus having it deleted from your CRAs

    The NCO financial I just had removed WAS a legitimate debt - it was a BofA collection that was discharged through my ch 7. But, I disputed it as not mine and since NCO Financial did not get them proof of the debt within 30 days it was completely removed from my report - which is much better than it being there and saying discharged....

    Start with the smallest debt. Then work your way up to the highest one. This way you will actually see the progress you are making and it will help you keep going.

    If anything is to drop off within 2 years dont even bother. Just wait it out. Im doing that with a few things - just waiting... but ones that were over 2 years I started disputing. Ive had great luck with it and my score went from 450 to 582 within a year.

  8. #8
    Banned i.breathe.in's Avatar
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    Default Re: Disputing credit

    if you can pay it off pay it off. seems like everyone has filed BR these days. especially lately with the economy. its not the scarlett letter.

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    Default Re: Disputing credit

    Quote Originally Posted by Peanut_Butter View Post
    But if that only leaves 20k in debt, isn't that a small amount to go bankrupt over?

    I will start calling the origional creditor and ask to pay them directly if they remove the collection agency, and remove the bad account after I pay them. Stupidly, I have about 10 collection agences for debt under $100. So I can pay one of those each month, and that would clean up my credit conciderably.

    I am also going to go to the hospitals today that I have collections with and ask them for the charity forms to see if I can get assistance p[aying some of that off. That will boost my score up again.

    Then I'm not left with too much bad debt at all, and I think my score would be high enough for me to start just piling good credit on top of the remaining bad stuff. Like getting a secured credit card and slowly building good credit.



    Well, I've been reading the credi boards on why chat, and I think the first thing I'm going to do is just ask for verification of the debt and see what comes back. Of course this can open me back up for collections, but if I want to clean up my credit, I'm gunna need to do that anyway one way or another.

    thanks for the advice.
    Good Girl!

    On negotiating a wipe off, be very careful. You must get this in writing, and it has to be wiped off in the right way. If you negotiate verbally, then pay them off in full, there is no guarantee that they will remove anything. In addition, if you initiate anything, they may reset the clock on you, even if they're not technically suppose to.

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    Default Re: Disputing credit

    Quote Originally Posted by AudreyLeigh View Post
    If anything is to drop off within 2 years dont even bother. Just wait it out. Im doing that with a few things - just waiting... but ones that were over 2 years I started disputing. Ive had great luck with it and my score went from 450 to 582 within a year.
    Absolutely. Prioritize your piddly diddly accounts by how old they are, being 100% sure as to when the last clock was reset. If older than 5 years, completely forget about them. Let them die off through attrition. It's much higher risk to have the clock reset, and you pay them off, and they don't wipe it off in the right way, than it is to NOT pay them at all and have them removed automatically.

    My ex gf was in way worse condition than you. I paid an attorney $1,000, who had a small army of paralegals who specialized in this, to clean up her credit. The cost of her bitching and moaning to me about it was far greater than the lousy $1,000. Her credit score went from the mid 400s to the mid 650s in about a year.

  11. #11
    AudreyLeigh
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    Default Re: Disputing credit

    I didnt trust paying some person/company so I did it myself. Im quite proud of myself if I do say so!!! Difference is I DO have a Ch7 - but forgot some debts in it and others were just pissing me off so I did all I could. Had I not had the Ch 7 my credit would be much better.

    As of now I have perfect credit for 2 1/2 years. Its just a waiting game for my score to go up... and these bs collections (like NCO) that all of a sudden pop up on my CRAs when they should have been in my ch7 - f it... I was like, Ill dispute it as not mine and if they come back saying they have proof its mine THEN Ill send proof it went through my bk or pay it or whatever.

  12. #12
    Peanut_Butter
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    Default Re: Disputing credit

    ^ I have several collections through NCO.

    Reading the creditboards, today I just mailed off the delete old addresses letter. That seems to be step 1.

    Next step I'm taking is to start sending letters to the ones who were supposed to drop off but haven't.

    After that, start contacting the small collections and arranging to pay them off and get them removed.

    Then I'll reevaluate my situation, see where I stand and what's going on to either wait them out if they are old, or dispute them if they are more recent, while being prepared to pay them if I cannot legally dispute them.

    Good plan?


    One more question....

    My student loans show a 60 day past due from the begining of this year. I wasn't recieving mail from them to tell me that my deferement had ended, and so the loans came due to be paid. I didnt know that. As soon as I found out, I put them back in deferrment, as I am still a college student and they dont need repaid until after I graduate.

    They were sending me letters through an email account that I don't use, I never recieved actual paper letters from them.

    Is there any way to get the late's removed from my credit? That is my most recent negative history and it is just from the past few months of this year.

    Thanks again for all the advice, I really appriciate it

  13. #13
    AudreyLeigh
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    Default Re: Disputing credit

    ^^^ oh, with student loans theyre pretty lenient... mine were WAY past due (same reason) and they went back and fixed it all when i set up a new deferment. Just call whoever the loans are through - theyre usually really accomidating.

    Thats a good plan!

    Its just baby steps. I was sooo frustrated with all this stuff that needed to be fixed but I made a plan and as of yesterday Im done. Well, I have one other thing Im working on but its an older collection from fraud... takes a bit longer...

  14. #14
    Featured Member Vamp's Avatar
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    Default Re: Disputing credit

    I am glad she has gotten good advice even though I have gotten to this post late.

    Never file bankruptcy on 20K!!!!! Why ruin your credit for 7 to 10 years when you can pay off the amount????

    Because ALOT of people are now filing bankruptcy, anyone who hasn't file but paid off their debt is seen as a golden goose. Why? Because everyone and their mother seems to be drowning in debt right now. Debt to income ratio is a large factor in the FICO score. http://www.myfico.com/creditEducation/
    More and more lenders are basing decisions on the FICO score and not just the raw credit score.

    After this process is done, which could take a couple of years, your credit will automatically go up. After bankruptcy it doesn't; even if in three years after it is filed the raw credit score becomes higher the bankruptcy still factors into interest rate decisions.


    I have said this before and I will say this again credit counseling is NOT seen in the same light as bankruptcy!!! The problem is that so many companies say they are credit counselors when in reality all they are is debt settlers. Settling a debt for less than the original amount will appear on a credit report for 7 to 10 years.

    Bankruptcy and credit counseling both have a charge involved. If you have the patience and time to research and take care of this yourself please do it. Not only will you raise your credit score this time but you will also know how to keep it from dropping and how to better manage your own money.
    Nature knows no indecencies; man invents them. ~ Mark Twain


  15. #15
    God/dess Deogol's Avatar
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    Default Re: Disputing credit

    What are your plans with this credit rating you hope to access?

  16. #16
    Peanut_Butter
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    Default Re: Disputing credit

    ^ Well, for starters I would like to get my car loan in my name. Because of my credit being so bad, I have absolutly nothign in my own name. My car is in my boyfriends name. I would like to "buy" my car off him and get the laon myself so that I am more self sufficient and do not have to rely on other people. You never know what can happen in the future, and I need to be able to stand on my own two feet, which I cannt do right now. I can't even get an apartment by myself because of how low my credit is. This is a dangerous path to be on. If something were to happen to my boyfriend or our replationship, I would not be able to survive without him carrying me.

    Becides, as an adult, I should have and need to be able to use my own credit.

    I would like to be able to buy a house in about 5 years as well, and as soon as I start my job in August, I will begin saving for a down payment. I would like to have at the very least 20,000 for a downpayment for a house in 5 years, and the good credit to go along with it.

    One problem I forsee is my student loans. I will have very close to 100k in student loans when all is said and done and I graduate in 2010. This worries me when it's time for repayment. I'm hoping that I can start paying something to them in the comming months just to ease that burden when I finally graduate.

    I have started at the very bottom of the barrel, I wasn't even able to get a checking account until very recently. I have been extreamly careful with that account and I am determinted to never allow it to go negative. That was step 1. Step 2 is the emergency fund, and I will have 5k in an online savigns account by June. Step 3 is to get health insurance so that I dont collect more medical debt. I applied and paid for a policy last week. Then I will start a second online savings account to save for the home downpayment. All the while trying to repair and rebuild my credit. I would LOVE to have a score in the 700's in 5 years time.

    I have started to dispute certain items on my credit report and have sent letters to other items offering to pay for their deletion from my report. Next month I plan to start to tackle my medical collections, which are the brunt of my negative credit. Once I start to get some thigns removed or paid down, I am going to get a secured visa card to get soem positive accounts.

    I suppose it isn't totally about credit repair, but just improving my all over financial health, so that when I do graduate from college in a few years, I will be a self sufficient adult.

  17. #17
    Member Renegade's Avatar
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    Default Re: Disputing credit

    ^^^^ Peanut, GOOD FOR YOU for wanting to be a competent adult - it's never too late to start and you are very much on the right path - it might get frustrating but remember another part of being an adult is patience...something I still have trouble with, lol. Go get 'em, girl.

    This post is awesome and incredibly educational - thank you to all who have posted their valuable advice!

    I have a question - I went backpacking around the world for a year, and left my house in the care of a "reputable" property management company. Came back to find out they had been late paying the mortgage SEVEN times and the 2nd mort. like 3 times. I tried to reason with the bank and they took off a few, but my score is trashed! Is there anything else I can do? This happened about two years ago...I should have been checking my statements online but I just assumed it was all okay...a hard lesson in looking after your shit! Nobody takes care of you but YOU.

    Thanks!

    - R

  18. #18
    AudreyLeigh
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    Default Re: Disputing credit

    Oh man - thats a whole different scenario... Id take the PM place to small claims and at least get $5K from them (or whatever the max is in your state) for them trashing your credit then pay an attorney with that $$ to try to get them to reason with the mortgage company to clean your credit up...

  19. #19
    Member Renegade's Avatar
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    Default Re: Disputing credit

    Well, they finally admitted their mistake and refunded all their fees, and wrote a letter to the bank claiming responsibility, but that only helped so much...I guess from the banks' POV it was my fault too

  20. #20
    AudreyLeigh
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    Default Re: Disputing credit

    what a horrible company. I really hope you reported them to BBB! Others should be warned!

  21. #21
    Peanut_Butter
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    Default Re: Disputing credit

    Quote Originally Posted by Renegade View Post
    Well, they finally admitted their mistake and refunded all their fees, and wrote a letter to the bank claiming responsibility, but that only helped so much...I guess from the banks' POV it was my fault too

    Write a letter to each credit reporting agency, experian, trans union and equifax.

    In the letter, tell them that account # xxxx, for account through xxx bank for a mortgage has numerous late fees. Tell them that those late fees are not yoru error, it was the managment compay's error and you have proof. Copy the letter where they said it was their fault and attach it. Say to the credit agency that you want those late fees removed as they are incorrect.


    Send the same letter to the bank, sayign you want those late payments removed because it was the managment company's fauly, and attach the letter that they says was their error.

    Then send a third letter to the managment company themself. State in this letter,
    I am very upset after pulling my credit report t discover that my account X xxxx shows severl late pays. This is very damaging to my credit and is very distressing to me because the mortgage was in the responsibility of YOUR company. I DEMAND that these late's are removed from my credit report within the next 15 days. Attach letter of responsibility.

    Wait a month and see what happens. If they dont get them removed, fire off another letter.

    Go to the creditboards.com and ask there for more detail abtou whatyou should do, or exactly how to word your l;etter. They are very helpful.

  22. #22
    AudreyLeigh
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    Default Re: Disputing credit

    ^^ Yea but technically is IS your fault - even tho you trust someone else to make your payment for you in the end it is your responsibility. So demanding late marks to be removed wont be honored because they werent posted in the wrong. The payments WERE late and it was the fault of you for trusting someone to make them.

    Your best bet is not to demand but to be passive and very very nice to the mortgage company. But you CAN sue them for ruining your credit - in small claims.

    That would be like Peanut_Butter saying to me - Ill make the car payment while Im driving it. If she mails in the payment late it is my fault - is not false reporting to the CRAs - it is my fault for trusting PB to make the payments and not paying close enough attention.

  23. #23
    Peanut_Butter
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    Default Re: Disputing credit

    ^ true. But it still dont hurt to ask. Espicially is she had a contract with them that states they will pay the bill on the first of the month or whatevr. She can take them to court and sue for breach of contract and for damages caused by her ruined credit.

  24. #24
    AudreyLeigh
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    Default Re: Disputing credit

    Quote Originally Posted by Peanut_Butter View Post
    can take them to court and sue for breach of contract and for damages caused by her ruined credit.
    Yup! Thats what I'd do!!! Im sure a good attorney could clean that up (be more persuasive than me or you) for a grand or so and then you come out with hopefully your good credit back and a few thousand dollar windfall. Stranger things have happened on the court shows...

  25. #25
    Peanut_Butter
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    Default Re: Disputing credit

    thoght I would bump this up...since sending out the verification/disputes a few weeks ago, the results started commign in this psat week....

    A capital one credit card that wasn't mine was deleted.
    a collection account that wasnt mine was deleted
    2 account that were past their 7 year mark were deleted.

    My credit score has dropped 30 pts. LOL. ( to be expected. I have practicially no good accounts, so my file is just getting thinner and thinner. even though the accounts were bad, it showed a long history, that I am now losing.) so I need to start adding in good accounts to start bringing my score back up.


    Asking for verification of accounts on your credit report and disputing entries you don't recognize is a very powerful tool. It's very hard work, takes a long time, and requires extreme organization and being on top of thigns...but it is a powerful tool in credit repair.

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