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Is 19 credit hours too much?

Are collections agents allowed to promise an increase on credit score for paying account with them?

  • Last year, I went to the hospital, and got a bill of 82$, a few weeks later. I ignored this bill for a couple reasons. 1. I have tricare because I am a dependent of an active duty military,parent, and I'd never had a bill in my life from hospital visit ( later understood why). and 2. B/c everyone told me hospital bills didnt affect your credit score ( Later found out collections hurt). The hospital handed bill over to collections, and at the time, I wasn't aware of that hurting my score either, or what a collections agency was really for ( i was only 19 :P) Well anyway, after a few months of not paying collections bill, I decided to check my credit score/report b/c i pay 20$ a month for membership, to see report. I didn't ever check my report until this day, b/c it was never on my mind of things to do. When i checked it that day, i was shocked to see my scores had dropped 100+. So I did some research on what the correct thing to do was, and read of first sending validation letter, and second, sending a pay for deletion letter. Doing this in letter format is only for proof of documentions, in the case they agree to take bad mark of credit report as long as full amount is paid, but dont hold up to their end of the deal, but I talked to an attorney, and he comfirmed my question that calling the collectors, but recording the conversation,and having a clear documentation of the conversation was just as good of proof as letter format. So i called *And Recorded The Conversation*, and i even had them say who they were and who they worked for. i asked them about the pay for deletion letter, and they said they did not do that, but they guaranteed me my credit score would rise up to almost exactly where it was before the reported bad to the bereau's. Scores went from an average 725, clear down to 555-605 because of bad mark :\. I went ahead and paid the debt( around March 8th), b/c assumed coming from a collections agency, they knew what they were talking about, due to past experiences with people in debt. My new updated credit report posted on www.freescore.com about 2 hours ago, and my scores went up to 591, 561, and 622. I looked into my report, and seen that It still showed up under " Collection account: Accounts Seriously Past Due" debt owed and not paid. So maybe they haven't updated it, to show as "paid". On the recorded phone conversation, they 1. guaranteed that my score Go up significantly almost the exact score before the bad reports, 2. That my "Deragatory" be switched back to 0 (Right now Derag. Shows: Trans - 2 Exp - 1 and Equi- 2), and 3. That my Status in report Will be updated to "paid debt" in the next few days, and will be seen on the next updated credit report... As of now, Looking a my just updated report, none of these happened. Credit score raised very little, Deragatories the same, and From what i can see, the collections accounts are still on their looking bad on me. Are Collections agencies allowed to promise all this, and not hold up to anything that was said? You would think that collections would understand Credit to the tee, and know what paying off a debt account will do to someones report, good or bad. So guaranteeing this is almost like them bribing, saying " We can't remove bad mark from report, but can promise that score will go back up once you pay us the money and we update, which will be immidiantly!" I basically got screwed. So, is there any advice I need to know here? Or am I just S.O.L and have to work so hard at raising my score up overtime. Sorry this is so long, but thank you to the ones who care that much to help others, that they read a chapter book to get the details to help :) You guys are appreciated by many!! Thank you for any advice in advance! P.s. If you ask for any more details, I will edit, and add in the details sections of post, So please visit the page again once updated, to get the details to further guide me. Thank you a ton! Also, in case it wasn't explained above, My debt account with collections is still hurting me when its seen, because they haven't updated it. So I paid collections, and they haven't changed it to paid, or anything. Seems as if they just took my payment, and that was it, hosed me. Reported nothing to get it changed to paid I have looked at the " THE FAIR DEBT COLLECTION PRACTICES ACT" on http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre27.pdf Under "Law number?" 807 section 10, it says 10) The use of any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a consumer... - Does this put them in the wrong?

  • Answer:

    They can say that your score will go up after you pay because it will... over time... Reports to the bureaus are frequently sent in monthly, so it won't show up right after you pay unless you get lucky and pay just before a cycle is processed. You can start a dispute with each bureau (instructions on their web site) by sending them proof of payment for the bill marked unpaid (copy of check).

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They can say that your score will go up after you pay because it will... over time... Reports to the bureaus are frequently sent in monthly, so it won't show up right after you pay unless you get lucky and pay just before a cycle is processed. You can start a dispute with each bureau (instructions on their web site) by sending them proof of payment for the bill marked unpaid (copy of check).

Ted

"1. guaranteed that my score Go up significantly almost the exact score before the bad reports" Baldfaced lie. They cannot guarantee squat about what your score might or might not do. They do not, and cannot, have access to the scoring model that Fair Isaac uses. For them to claim a "guarantee" that your score will do 'anything' if you pay violates the FDCPA. "2. That my "Deragatory" be switched back to 0" Another lie and another FDCPA violation. The only way that your reports would show 0 derogatory marks is if they remove what they are reporting. Simply showing a negative as paid will not be enough for the credit reports to show a 0 under derogatory. As for #3, "the next few days" is probably too vague of a comment for you to hang them on that, yet. You say you have it on tape and that you've already discussed it with a lawyer. I would suggest that you take a copy of that tape and a copy of your reports back to that lawyer and discuss actions against that collector for their FDCPA violations, for violations under the FCRA if they are reporting "anything" inaccurately,and since it's a medical account, for violations under the FACT Act, for violations under ARRA, for violations under the HITECH Act, for violations under your states medical privacy laws and you might as well throw in unlawful extortion while you're at it. With violations like that, and having it on tape, then the lawyer may feel that you have a strong case and 'may' take your case on a contingency basis. Be absolutely sure to make several copies of that tape and keep them in a safe place.

anywhoo

"1. guaranteed that my score Go up significantly almost the exact score before the bad reports" Baldfaced lie. They cannot guarantee squat about what your score might or might not do. They do not, and cannot, have access to the scoring model that Fair Isaac uses. For them to claim a "guarantee" that your score will do 'anything' if you pay violates the FDCPA. "2. That my "Deragatory" be switched back to 0" Another lie and another FDCPA violation. The only way that your reports would show 0 derogatory marks is if they remove what they are reporting. Simply showing a negative as paid will not be enough for the credit reports to show a 0 under derogatory. As for #3, "the next few days" is probably too vague of a comment for you to hang them on that, yet. You say you have it on tape and that you've already discussed it with a lawyer. I would suggest that you take a copy of that tape and a copy of your reports back to that lawyer and discuss actions against that collector for their FDCPA violations, for violations under the FCRA if they are reporting "anything" inaccurately,and since it's a medical account, for violations under the FACT Act, for violations under ARRA, for violations under the HITECH Act, for violations under your states medical privacy laws and you might as well throw in unlawful extortion while you're at it. With violations like that, and having it on tape, then the lawyer may feel that you have a strong case and 'may' take your case on a contingency basis. Be absolutely sure to make several copies of that tape and keep them in a safe place.

anywhoo

Way too much stuff here to read. But basically, paying off a debt that has gone to collections will not improve you score.

MadMan

I think bad.

Deneen

should be worse

Justine

First off, to answer your latest update, NO that section of the FDCPA does not apply. Second, your lawyer needs to read up on the law. In most states a recorded message is illegal unless you specifically inform the person you are calling that the conversation is being recorded. Ever hear those people who call for fund raising that the conversation may be recorded for training purposes, that's there excuse to cover their a$$. As to the pay for deletion you should have obtained a "pay for deletion" agreement' A good written legal agreement should meet the following: (1) sets forth all material terms and conditions (2) is signed by both parties (3) is dated. Without a PFD agreement that is valid, the debt will drop from your credit report in 7 1/2 years (this reporting period runs 7 1/2 yrs from the date of last delinquent payment.(Running of Reporting Period - Section 605 [15 U.S.C. § 1681c] If you did obtain a proper written contract showing the creditor agreed to a Pay for Deletion, then send copies to each of the CRA's and dispute the entry.

Sgt Big Red

Seems like you "weren't aware" of many of the features of normal everyday life. What happened to your parents who were supposed to guide you down the rocky road towards adulthood? The collection agency is in business to collect delinquent debts. They can legitimately sue you at any time for te entire amount of the debt plus interest. Nobody updates "immediately". It takes time. Negatives remain on your credit report for several years. (What good would a credit report be if negatives were magically removed instantly?)

Ed Fox

First off, to answer your latest update, NO that section of the FDCPA does not apply. Second, your lawyer needs to read up on the law. In most states a recorded message is illegal unless you specifically inform the person you are calling that the conversation is being recorded. Ever hear those people who call for fund raising that the conversation may be recorded for training purposes, that's there excuse to cover their a$$. As to the pay for deletion you should have obtained a "pay for deletion" agreement' A good written legal agreement should meet the following: (1) sets forth all material terms and conditions (2) is signed by both parties (3) is dated. Without a PFD agreement that is valid, the debt will drop from your credit report in 7 1/2 years (this reporting period runs 7 1/2 yrs from the date of last delinquent payment.(Running of Reporting Period - Section 605 [15 U.S.C. ยง 1681c] If you did obtain a proper written contract showing the creditor agreed to a Pay for Deletion, then send copies to each of the CRA's and dispute the entry.

Sgt Big Red

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