Your Majesty,
I am trying to clean up my credit and ordered my credit report recently. I saw that a three year old account I had forgotten about was still listed so I
called to find out how to get it removed. It had been sold to a creditor. I made arrangements to pay with my debit card. They are now charging me
all the back interest. Help!
Frustrated
Dear Frustrated
I wish you had emailed me sooner. A loan that has been charged off and has had no activity for three years (in most states) cannot be collected
on through lawsuit. This does not mean that it will be removed from your credit report, however. It will remain there for at least 7 years whether you
pay it off or not. The Fair Debt Collections Practices Act spells out what steps a creditor or collection agency can take against you, what you can
do to stop them from contacting you and how you can file a complaint against a collector for non-compliance with this act.
If the collection agency can prove that you owe the money (always plead ignorance until they do), then bargain with them to bring your credit
report to an 'up to date and paid as agreed' status in return for paying them off in a lump sum. Negotiate, negotiate, negotiate. They will say they
can't do whatever you are asking - but they can. You just have to find the right person to work with. Call at all hours and on different days. Get the
name of the people you speak with. Insist that you want to pay, just that you can't pay it all. If you are truly in financial difficulty, one look at your
credit report should convince them that you are telling the truth. Don't intimate that you can borrow the money from a relative or friend or another
credit card. After all, they paid less than what you owe to take over that debt. It was a gamble on their part. Don't give them more that you can
afford. Drive a hard bargain - and good luck.
I am trying to clean up my credit and ordered my credit report recently. I saw that a three year old account I had forgotten about was still listed so I
called to find out how to get it removed. It had been sold to a creditor. I made arrangements to pay with my debit card. They are now charging me
all the back interest. Help!
Frustrated
Dear Frustrated
I wish you had emailed me sooner. A loan that has been charged off and has had no activity for three years (in most states) cannot be collected
on through lawsuit. This does not mean that it will be removed from your credit report, however. It will remain there for at least 7 years whether you
pay it off or not. The Fair Debt Collections Practices Act spells out what steps a creditor or collection agency can take against you, what you can
do to stop them from contacting you and how you can file a complaint against a collector for non-compliance with this act.
If the collection agency can prove that you owe the money (always plead ignorance until they do), then bargain with them to bring your credit
report to an 'up to date and paid as agreed' status in return for paying them off in a lump sum. Negotiate, negotiate, negotiate. They will say they
can't do whatever you are asking - but they can. You just have to find the right person to work with. Call at all hours and on different days. Get the
name of the people you speak with. Insist that you want to pay, just that you can't pay it all. If you are truly in financial difficulty, one look at your
credit report should convince them that you are telling the truth. Don't intimate that you can borrow the money from a relative or friend or another
credit card. After all, they paid less than what you owe to take over that debt. It was a gamble on their part. Don't give them more that you can
afford. Drive a hard bargain - and good luck.
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© 2008 by Dragon Bear Inc. All Rights Reserved
.Linda Adams, The Clean Credit Queen is not a registered investment advisor and the information provided in this newsletter should be considered educational in
nature, but it is not a substitute for legal or professional financial advice. If you believe you need the help of a Certified Financial Planner or other investment
counselor, please seek a qualified professional.
.Linda Adams, The Clean Credit Queen is not a registered investment advisor and the information provided in this newsletter should be considered educational in
nature, but it is not a substitute for legal or professional financial advice. If you believe you need the help of a Certified Financial Planner or other investment
counselor, please seek a qualified professional.
not a complete scam. One of the prospective apartments that we found is owner-rented and the owner that
do it for us and then charge us the requisite 50 bucks (I'm sure it costs about 5 to do) and the websites I
saw all seemed pretty scamming.
Want to Move
Dear Want to Move,
The best site for getting your credit score is Experian. They use the FICO model which is considered to be
the standard by most people seeking credit score information. Unfortunately you will have to purchase your
score. The good thing about getting your own score is that your score is not negatively impacted like it
would be if you allow someone else to pull it. If you pull it yourself - make sure you find out what the rental
office will take as proof of your score
All three major credit bureaus will give you a free credit report once a year but that does not include your
credit score. If you want to get the free credit report then you can add on the score - for a fee. The process
is a bit tricky so follow the directions and be careful not to sign up for anymore than you want on the bureau
sites. They will try to get you to buy a monthly service. If you do want the cheapest score I recommend
Experian which allows you to get a 'free' report and score but you have to enroll in a trial program for
$14.95/mo. Be sure to cancel within the first 7 days or they will charge your credit card. Score Watch from
Equifax is a $7.95 one time or $9.95/mo charge. TransUnion will charge you $14.95/mo for access to your
report and score but you can cancel anytime after that. I have not heard good things about their TrueCredit
site but I have no experience with it myself. Hope you find a great place!
Good luck and Good Credit
CCQ
do it for us and then charge us the requisite 50 bucks (I'm sure it costs about 5 to do) and the websites I
saw all seemed pretty scamming.
Want to Move
Dear Want to Move,
The best site for getting your credit score is Experian. They use the FICO model which is considered to be
the standard by most people seeking credit score information. Unfortunately you will have to purchase your
score. The good thing about getting your own score is that your score is not negatively impacted like it
would be if you allow someone else to pull it. If you pull it yourself - make sure you find out what the rental
office will take as proof of your score
All three major credit bureaus will give you a free credit report once a year but that does not include your
credit score. If you want to get the free credit report then you can add on the score - for a fee. The process
is a bit tricky so follow the directions and be careful not to sign up for anymore than you want on the bureau
sites. They will try to get you to buy a monthly service. If you do want the cheapest score I recommend
Experian which allows you to get a 'free' report and score but you have to enroll in a trial program for
$14.95/mo. Be sure to cancel within the first 7 days or they will charge your credit card. Score Watch from
Equifax is a $7.95 one time or $9.95/mo charge. TransUnion will charge you $14.95/mo for access to your
report and score but you can cancel anytime after that. I have not heard good things about their TrueCredit
site but I have no experience with it myself. Hope you find a great place!
Good luck and Good Credit
CCQ
