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Paying for past mistakes, need direction.


DeputyJ
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Hello, I'm new to the boards and have been reading as much as I can. Long story short, few years ago I got a few lines of credit; ie retail stores/credit cards. Spent more than I took home, and got into debt. Got lost along the way and stopped paying due to poor money management and stupidity. I have a total of $8083 dollars in unsecured debt between credit cards, $2671 of the debt is student loans. I know the accounts are charge-off's, and in collections.

 

I'm finally able to manage my money and budget. Who would have guessed? I have approximately $900 left over a month and getting a part-time job due to wanting to obtain as much income as possible to get out of debt as quickly as possible.

 

How do I find out which collections agencies have bought my debt? A few still call, and I'm still reading how exactly to speak to them in order to cover myself. I been looking into debt management programs due it seeming easiest on paper; pay them and they spread the money around to the CA's. I know not all things are what they appear to be, but I really don't know how to start tackling. All I can do is start taking baby steps.

 

I know I got myself in this situation and do not blame anyone else. I am taking responsibility for my actions, want to pay back all my debt, and rebuild my credit for my family's sake.

 

I am realizing how valuable these boards are in regards to the abundance of information. I thank everyone who contributes their knowledge to help others. I am a Law Enforcement Officer and know helping others is difficult sometimes. Thanks in advance for any guidance. Be safe out there...

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The first thing that I would do is pull a hard copy of all of your credit reports. You need to have them sent through the US MAIL and not online through annualcreditreport.com (Like the rep you call will suggest to do). It's important to get them directly through the source to avoid any information that may be missing by going through 3rd party's. Just explain to them you want them sent through us mail.

 

 

 

Can I suggest you make another thread in the student loan section specifically regarding that debt. They can better assist you there. They have people in that section that have EXTENSIVE knowledge on how to deal with that stuff as those situations are handled differently than normal debt.

 

 

 

Once you get your reports and find out exactly what is on them we can help you find anything that is reporting incorrectly and tell you what steps you need to take to get it removed all together....

Edited by stroked89coupe
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The first thing that I would do is pull a hard copy of all of your credit reports. You need to have them sent through the US MAIL and not online through annualcreditreport.com (Like the rep you call will suggest to do). It's important to get them directly through the source to avoid any information that may be missing by going through 3rd party's. Just explain to them you want them sent through us mail.

 

 

 

Can I suggest you make another thread in the student loan section specifically regarding that debt. They can better assist you there. They have people in that section that have EXTENSIVE knowledge on how to deal with that stuff as those situations are handled differently than normal debt.

 

 

 

Once you get your reports and find out exactly what is on them we can help you find anything that is reporting incorrectly and tell you what steps you need to take to get it removed all together....

 

 

:good:

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The first thing that I would do is pull a hard copy of all of your credit reports. You need to have them sent through the US MAIL and not online through annualcreditreport.com (Like the rep you call will suggest to do). It's important to get them directly through the source to avoid any information that may be missing by going through 3rd party's. Just explain to them you want them sent through us mail.

 

 

 

Can I suggest you make another thread in the student loan section specifically regarding that debt. They can better assist you there. They have people in that section that have EXTENSIVE knowledge on how to deal with that stuff as those situations are handled differently than normal debt.

 

 

 

Once you get your reports and find out exactly what is on them we can help you find anything that is reporting incorrectly and tell you what steps you need to take to get it removed all together....

 

^ +1!!!

 

Please, if you really want to go about this the correct way. While you are waiting for your credit reports to come in, please do not give the CA's ANY money. Do not even talk to them on the phone or in writing. You need to see your reports first to see the proper direction to take. Paying CA's can waste your time, lengthen the amount of time the damage remains on your reports, and waste your money.

 

Please, don't do anything until you've reviewed your hard copies and get back to us!

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The first thing that I would do is pull a hard copy of all of your credit reports. You need to have them sent through the US MAIL and not online through annualcreditreport.com (Like the rep you call will suggest to do). It's important to get them directly through the source to avoid any information that may be missing by going through 3rd party's. Just explain to them you want them sent through us mail.

 

 

 

Can I suggest you make another thread in the student loan section specifically regarding that debt. They can better assist you there. They have people in that section that have EXTENSIVE knowledge on how to deal with that stuff as those situations are handled differently than normal debt.

 

 

 

Once you get your reports and find out exactly what is on them we can help you find anything that is reporting incorrectly and tell you what steps you need to take to get it removed all together....

 

^ +1!!!

 

Please, if you really want to go about this the correct way. While you are waiting for your credit reports to come in, please do not give the CA's ANY money. Do not even talk to them on the phone or in writing. You need to see your reports first to see the proper direction to take. Paying CA's can waste your time, lengthen the amount of time the damage remains on your reports, and waste your money.

 

Please, don't do anything until you've reviewed your hard copies and get back to us!

 

+1 this board is super helpful so please ask a lot of questions. From my brief understanding, someone correct me if I am wrong, you do not ever want to pay the collection agencies. If you are to pay off your debt you would want to do it with the original creditor after they can verify the debt is yours. In some cases you can make arrangements with the original creditor that if you pay, they will delete from your credit reports. Read and stay around and ask lots of questions. Good luck!

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A few still call, and I'm still reading how exactly to speak to them in order to cover myself.

 

This part is easy. STAY OFF THE PHONE.

 

ALL communication with a collection agency is to be done in writing. No exceptions.

 

 

COMMIT THIS TO MEMORY, DEPUTYJ!!! STAY ON THESE BOARDS TO SEE WHY THIS IS BIBLE!

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The first thing that I would do is pull a hard copy of all of your credit reports. You need to have them sent through the US MAIL and not online through annualcreditreport.com (Like the rep you call will suggest to do). It's important to get them directly through the source to avoid any information that may be missing by going through 3rd party's. Just explain to them you want them sent through us mail.

 

 

 

Can I suggest you make another thread in the student loan section specifically regarding that debt. They can better assist you there. They have people in that section that have EXTENSIVE knowledge on how to deal with that stuff as those situations are handled differently than normal debt.

 

 

 

Once you get your reports and find out exactly what is on them we can help you find anything that is reporting incorrectly and tell you what steps you need to take to get it removed all together....

 

^ +1!!!

 

Please, if you really want to go about this the correct way. While you are waiting for your credit reports to come in, please do not give the CA's ANY money. Do not even talk to them on the phone or in writing. You need to see your reports first to see the proper direction to take. Paying CA's can waste your time, lengthen the amount of time the damage remains on your reports, and waste your money.

 

Please, don't do anything until you've reviewed your hard copies and get back to us!

 

+1 this board is super helpful so please ask a lot of questions. From my brief understanding, someone correct me if I am wrong, you do not ever want to pay the collection agencies. If you are to pay off your debt you would want to do it with the original creditor after they can verify the debt is yours. In some cases you can make arrangements with the original creditor that if you pay, they will delete from your credit reports. Read and stay around and ask lots of questions. Good luck!

 

 

That is correct. You never want your hard earned money to go to people who had absolutely nothing to do with your account in the first place. If you feel morally obligated to pay your past debts, then pay the OC. The CA/JDB's did absolutely nothing other than buy your debts for pennies on the dollar and are now going to hold you up for money and additional fees. And on top of that, the minute you give any entity a single cent towards this "unknown" debt, it will immediately reset the clock on those tradelines on your reports. So then the DOFD resets and 7-years starts back up when the DOFD happens again.

 

Please, stay FAR away from CA's!!!!!!

 

Get your reports. Write down a list of the TL's to all who claim you owe them money, and then come back here with that information. We'll help you get started. This board and community is good like that! :D

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Thank you all. I will be obtaining hard copies from all three CRAs soon. I'll be working the streets for the next few days and will try to get time to read a bit more.

 

Also, I did not know, and may be wrong, but even though the OC sold the debt to a CA, I can still pay the OC and they will notify the CA the debt is paid? I've also been looking into the pay to delete process. I know its totally up to the OC to delete the charge-offs. Just wondering if I can still send most of the original debt owed, not all, and still get it deleted.

 

I will post back with all the information once I obtained the copies for the threee CRAs. Thanks...

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Thank you all. I will be obtaining hard copies from all three CRAs soon. I'll be working the streets for the next few days and will try to get time to read a bit more.

 

Also, I did not know, and may be wrong, but even though the OC sold the debt to a CA, I can still pay the OC and they will notify the CA the debt is paid? I've also been looking into the pay to delete process. I know its totally up to the OC to delete the charge-offs. Just wondering if I can still send most of the original debt owed, not all, and still get it deleted.

 

I will post back with all the information once I obtained the copies for the threee CRAs. Thanks...

 

Keep in mind that PFD's (Pay For Deletion) is a method of LAST RESORT when all other methods have been exhausted.

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Thanks, no answering phone calls, got it. Also, I reside in the state of Louisiana. I know we are a little different when it comes to laws. :). I spent about 10 minutes on the phone with a computer, providing information to get all 3 CRAs reports sent to me by mail. Processed in approximately 15 days.

Edited by DeputyJ
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The first thing that I would do is pull a hard copy of all of your credit reports. You need to have them sent through the US MAIL and not online through annualcreditreport.com (Like the rep you call will suggest to do). It's important to get them directly through the source to avoid any information that may be missing by going through 3rd party's. Just explain to them you want them sent through us mail.

 

 

 

Can I suggest you make another thread in the student loan section specifically regarding that debt. They can better assist you there. They have people in that section that have EXTENSIVE knowledge on how to deal with that stuff as those situations are handled differently than normal debt.

 

 

 

Once you get your reports and find out exactly what is on them we can help you find anything that is reporting incorrectly and tell you what steps you need to take to get it removed all together....

 

^ +1!!!

 

Please, if you really want to go about this the correct way. While you are waiting for your credit reports to come in, please do not give the CA's ANY money. Do not even talk to them on the phone or in writing. You need to see your reports first to see the proper direction to take. Paying CA's can waste your time, lengthen the amount of time the damage remains on your reports, and waste your money.

 

Please, don't do anything until you've reviewed your hard copies and get back to us!

 

+1 this board is super helpful so please ask a lot of questions. From my brief understanding, someone correct me if I am wrong, you do not ever want to pay the collection agencies. If you are to pay off your debt you would want to do it with the original creditor after they can verify the debt is yours. In some cases you can make arrangements with the original creditor that if you pay, they will delete from your credit reports. Read and stay around and ask lots of questions. Good luck!

 

 

That is correct. You never want your hard earned money to go to people who had absolutely nothing to do with your account in the first place. If you feel morally obligated to pay your past debts, then pay the OC. The CA/JDB's did absolutely nothing other than buy your debts for pennies on the dollar and are now going to hold you up for money and additional fees. And on top of that, the minute you give any entity a single cent towards this "unknown" debt, it will immediately reset the clock on those tradelines on your reports. So then the DOFD resets and 7-years starts back up when the DOFD happens again.

 

Please, stay FAR away from CA's!!!!!!

 

Get your reports. Write down a list of the TL's to all who claim you owe them money, and then come back here with that information. We'll help you get started. This board and community is good like that! :D

 

 

 

:good:

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  • 2 months later...

Ok, I’ve been doing so much reading on these forums my eyes hurt. Reading this bright lit up screen in my patrol unit, during my report completion time when I don’t have any reports, and its pitch black outside. Some things I’ve been reading seem to conflict. I’ll get to the in a second.

 

My live-in girlfriend’s mother is wanting to become a “Primerica” rep, hold back the comments for a minute lol. Part of her “training” she shadows a Primerica “district” rep for awhile. Well she signed us up for a meeting. They came over, tried to recruit of course, and asked me some numbers. I get the gig, try to recruit to sell life insurance. They will be coming back today with a “plan” after inputting all my debt, etc etc. I really just want to see what kind of program they run everything through. Doesn’t cost me anything and I’m not buying anything.

I’ve also looked into Freedom Debt Relief. I’ve read mixed opinions. Some horror stories, some not so scary. I just don’t really understand how it works. I’m sure they’ll call since I submitted my phone number for a quote. I’ll see what their gig is when that time comes. In theory it seems legit, but in my profession you tend to believe only 25% of what you hear and 50% what you see. I am a skeptic to the bone.

 

Ok, the conflicting stuff that interest me. Paying settlement offers. Some say NOOOOOOOO. I understand why, “settled” tag on CRAs or paid less than agreed, or whatever I’m still learning. But I have also read that if the debt is owned by the CAs and they are reporting is as a collection account that it does not matter if it listed as “settled”.

I’ve been saving as I can. Working a lot of overtime this month, I’ll barely be home. Trying to get a lump sum to negotiate with. So far I have 2 settlement offers, one total balance is $753, settlement amount 414. Another is $393, settlement amount $127. I have not called anyone or spoken to anyone since my first post here. But I am ready to start knocking this debt down.

 

If I need to list any info on my credit reports, amounts etc… let me know I’ll be happy too. I know there are some people out there in worse situations than me but I know the weight felt on my shoulders is similar to many others out there. Again, I appreciate you all out there taking time out of your lives to assist anyone here looking for guidance. Thanks in advance.

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If you are able to pay the full amount, PAY IT! But attach a condition to it. Write to the CA and request that the collection be deleted upon receipt of payment for the full amount. Many CA's don't care about reporting bad debt, even ifs been paid because they are not in the business to ruin your financial life... They are there to make money after buying your debt from the original credit for pennies on the dollar.

 

More of often than not, contacting the original creditor is moot because, if they sold the debt, the debt no longer belongs to them. They have most likely written it off as a loss and therefore cannot collect on it once they have done that. Sometimes, the OC hired a CA to collect on their behalf, and in that instance, the OC still owns the debt. Yes, you should still call the Oc to confirm whether or not they own the debt.

 

From my personal experience, working with CA's has been a lot better for my CR than working with OC's. I say this because OC's are less inclined to do a pay-for-delete. Ca's on the otherhand, just want their money, and anyway to get it, they'll do it!

 

Now, let's talk about settlements. If you do a pay for less, or a settle for less, you become obligated to report that "gain" in your tax return. For example, debt: $1000, settled: $500. You'll get a 1099-C for $500 as a "cancellation of debt" and is viewed as a profit or income.

 

This is my advice and suggestion:

 

Always pay your most recent collection. Save money till you have the full amount, then contact the CA and request a PFD. Rinse and repeat till all your debts have been paid off. I WOULD HIGHLY ADVISE YOU NOT TO USE A DEBT CONSOLIDATION PROGRAM/COMPANY!!

 

In the meantime, I would suggest applying for at least 2 secured cards. The limit doesn't have to be high, minimum deposit is perfect. This way, you can build a positive credit trade line while you are paying debts and CA's are removing negative trade lines from your CR. US Bank, BOA, CapOne are good places to look into. I would advise not to make purchases with these cards, as they are there to only report positive TL's. Few small purchases to show payment history will suffice. But going out and going on a swiping fee will be counter productive towards your goal.

 

Build a solid payment schedule with your self. This way you can see which debts you need to pay and debts worth letting the SOL run it's course(if applicable).

 

I followed this plan and scheduled to pay 4 out of 6 CA's. It took 2 years to pay off those 4, and by the time the 2 years was up, the remaining 2 debts were 6-8 months shy of 7 years since DOFD, so they naturally fell off. In 2 years, went from low 500's to low 700's. Now I have 6 credit cards with balances ranging from $8k - 25k. I know it seems excessive, but those are possibilities.

 

Last advice, once you start paying off those CA's and they start removing the TL's from your CR, don't go app crazy and apply for every credit card you think you can apply for. The goal is to be able to apply for any credit card AFTER your debts have been paid and be APPROVED!

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I've looked further into my CRs and noticed most of all the OCs are reporting the debt. Only 2 are actual CAs. I have 7 accounts the need taken care of. I recently called one collection agency sending me a settlement offer for Macys. Seemed nice, I just wanted to ask questions about my CRs and he stated he could not answer any questions in regards to reporting to the CRAs due to their company not doing any reporting, and gave me the number to Macy's.

 

If the OCs are still reporting on my CRs and not the CAs, should I just take care of the debt with the OC since they ultimately control what they report to the CRAs? Is the negotiating really that much different from the OC to the CA? Another question in regards to paying CA/OC. Basically work out an agreement, have them mail me it in writing, then mail them payment? And what's best payment type?

 

I also read my fill on student loans. Which I have one for LOSFA for approx. 2700 dollars. May knock that one as soon as possible since there's not settling with them.

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Not a problem. I am not sure how to lay it out but here goes...

 

Midland Funding (Collecting for a Paypal CC) - $1249 Delinquent-04/2012, Midland Funding shows Date Opened 7/1/2013

 

Portfolio Recovery (Collecting for Amazon CC) - $864 Delinquent-03/2012, Portfolio shows Date Opened 9/1/2012

 

Capital One CC - $976 Delinquent-06/2012, Shows Date opened 06/2010

 

Chase CC - $1177 Delinquent- 05/2012, Date opened 11/1/2008

 

DSNB Macys - $753 Delinquent- 04/2012, Date Opened 10/1/2009

 

ODPC/CBNA (Office Depot) - #393 Delinquent- 03/2012 (But I had made installment payments drafted out of my account by a CA for 6 months, showed it was current for 6 months 08/2012 - 01/2013, then Delinquent again 02/2013. I thought I had finished paying it off due to not being charged anymore, but I didn't know what I was doing and never got any confirmation. I'll check old bank statements to see amount payed.)

 

Student Loan - LOSFA, which was originally with Sallie Mae - $2711 Delinquent- 10/2012

 

 

Thanks in advance, and if any other info is need just say it.

 

PFD, which I've learned is Pay for Deletion, but really don't know how to do that, or when I should do that.

Edited by DeputyJ
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Hey DeputyJ, I'm also in La.. so welcome from a native. The only thing I haven't seen you mention yet was the SOL for any of these accounts. I see that most of these appear to be CC debt and it appears that all of these are still within SOL. I don't have any CC debt, most of mine are medical, but if I remember correctly for La our SOL on CC debt is 3 years from DOFD. Before you do anything else, wait for one of the experts to chime in. You may get in trouble if any one of these creditors get judgement happy.

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Hey DeputyJ, I'm also in La.. so welcome from a native. The only thing I haven't seen you mention yet was the SOL for any of these accounts. I see that most of these appear to be CC debt and it appears that all of these are still within SOL. I don't have any CC debt, most of mine are medical, but if I remember correctly for La our SOL on CC debt is 3 years from DOFD. Before you do anything else, wait for one of the experts to chime in. You may get in trouble if any one of these creditors get judgement happy.

Yes. SOL for credit card debt in La. is 3 years.

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Ok, I'm back. Been busy racking my brain with articles and everything else.

 

I recently settled my Office Depot debt of $393 for $211. It was a spontaneous thing, I know not good, but done. I was also wondering, when I call to find out about the debt, OC or CA, if we work out something, should I just have them mail me something in regards to the agreement/payment/??? before actually paying them? I'm just looking for the best route, and can I just ask the CAs for Pay for deletion on the phone?

 

Also, got my Student Loan in rehabilitation... 8 month plan instead of 9 since I was able to start it today. Found out they were soon filing for wage garnishments, whew. Glad I decided to check into it.

 

Now I'm down to 5 debt accounts... ready for guidance to start knocking them out.... Thanks

 

 

 

Also, someone give me the Secured Credit Card for Dummies rundown. I've read a little... basically you put up cash which serves as your limit, you pay a annual fee, for some, and it works as a credit card with you cash being the collateral? I didn't get into the gritty details but I read some report as secured which is bad? and some report as unsecured TLs which is good. Any way to find out which one is best? or comes highly recommended? And also, I read some become unsecured after a period of time of good payments. They refund you your cash you put up?

 

I'm sorry if I'm not following the natural order of things in regards to post, etc. I just have a lot going on right now and I'm just trying to keep my info all in a few places to make it easier for me.

Edited by DeputyJ
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