Credit Repair Letter Questions

[howamidoing]

What is the name of your state? Missouri
I have a question about a credit repair letter. I have a few debts totalling less than 2 thousand dollars. I am wanting to talk to the collection agencies to see if I can work out a payment plan. I am wondering if there is a good template out there for this purpose. One has passed the SOL but I am willing to pay it to get it off my credit. If I pay these will they have to remove them or is that something I have to request in the letter. Also while I am paying them do they have to report that I am actually paying them? Should I ask them to validate the debts as well at this time, or beforehand? Thanks for all your help...

 

[ANGELWEEZY]

Re: Credit repair letter question

Slow down a bit before you get yourself into a heap of trouble.

#1 send out a letter to ONLY the colection agencies that are SOL, telling them that you dispute the account and want them to validate it,showing that they(the collection agency) has the right to collect money from you on the account and show proof that you are the person thew account belongs to. If you go off half cocked and set up a payment plan and actually send them $1.00, you are resetting the SOL clock. NO they do not have to remove it from your credit report after you pay the accounts off, matter of fact, it will remain on your credit report for 7 1/2 years more.k
So my advice for you is to send the Demand for Validation letter to the one beyond the SOL. How long before the other(s) will be SOL? lay low on them, remember, you will be restarting the SOL by making any payment and they will NOT remove it.

Have you tried disputing these accounts with each of the 3 credit reporting agencies?(Experian,Equifax, and TransUnion) If not do that before you even send out the DV or you could do it both at the same time, but not the DV first.
If you have any more questions or just need someone to walk down the road I have travelled, feel free to contact me. Good luck. Angelweezy

 

[zippysgoddess]

If you know they are yours, and you are planning to pay them, what is the point of validation?

As to removing them from your credit report, you can try to negotiate that, but they are in no way obligated to do that, though they do have to mark that you have paid it when it is paid off.

YOu can do a search for creditinfocenter, they have tons of forms, and templates you can use.

 

[Ladynred]

it will remain on your credit report for 7 1/2 years more.

NO, NO, NO, NO, NO !!

A negative entry can ONLY stay on your reports for 7-1/2 years from the DATE OF FIRST DELINQUENCY. No matter WHEN you pay it, IF you pay it, it can NOT remain an additional 7-1/2 years !

Also while I am paying them do they have to report that I am actually paying them?

No, they don't and they probably won't.

 

[howamidoing]

Only one of them is past the SOL. The others are from 2003, 2002, and this year. Will asking for a validation on the one past the SOL restart the clock? I want to repair my credit this is what I am asking. However, I do not have the money to pay them all of as I have had medical problems. Any advice on what I SHOULD do? Thanks for all your replies...

 

[TigerD]

Only one of them is past the SOL. The others are from 2003, 2002, and this year. Will asking for a validation on the one past the SOL restart the clock? I want to repair my credit this is what I am asking. However, I do not have the money to pay them all of as I have had medical problems. Any advice on what I SHOULD do? Thanks for all your replies...

First: Missouri SOL
Written agreement that contemplates the payment of money or property: 10 Years, (Mo.Rev. Stat. §5l6.ll 0). NOTE: Under certain circumstances, the contractual statute of limitations may be reduced to five years.

Open accounts: 5 years, (Mo. Rev. Stat. §5l6.l20).

Sale of goods under the UCC: 4 years. NOTE: The statute begins to run from the date when the breach occurred for contracts and from the time of the last item in the account on the debtor's side for actions on accounts.

Second: You have limited funds and priorities. Set up a payment arangement with the account that is the newest. Don't worry about things like credit reporting yet -- just get a payment plan in place and follow it to the letter.

Third:
Ask for settlements on the 2002, 2003 debts. Get the settlement offer in writing before paying a dime.

Fourth:
Demand validation on the debt outside SOL. Seriously, if it is outside SOL in Missouri it is getting close to dropping off your report anyway. If you want to pay it to make yourself feel better, offer no more than 20 cents on the dollar and negotiate for 25 cents on the dollar.

Fifth:
Wait six months and start disputing the entries with the CRAs. Collection agencies don't make money by constantly responding to paperwork requests about closed accounts. With patience, you can clear up the credit report.

DC

 

[Ladynred]

Will asking for a validation on the one past the SOL restart the clock?

No, it will not. Only sending them money will do that.

 

[howamidoing]

Thanks for all your help...