kgmckinley

11 Contributions 76 People Helped Top Contributor

Member Since: October 2009

Most Helpful Contribution

What is the best way to handle accounts in collections?

Feb 25, 2015
Helpful to 30 out of 36 people

you need a paper trail, thus the letters.

do not admit to debt. the debt validation is their job.

if the debt is past the statute of limitations, send a FOAD letter (F-Off and Die)

I had one agency claim I owed over $15K. the alleged debt was 14yrs old (did not show on credit report)

agency sent me a "friendly" reminder letter and that I could pay off the debt with "3 easy payments"

I sent a FOAD letter

they replied with a 1099-C (debt cancellation tax form) which if I recognized it would have totally screwed my tax filing (I would have owed state & fed taxes a rather large sum)

I replied with a letter to the BBB, IRS, my state DA, their state DA and of course CC'ed the agency.

They replied with a "corrected" 1099-C showing debt of $0

Activity (11 Total Contributions)

Results 1-10 of 11Results per page: 5 | 10 | 25Page 1 of 2   Previous | Next

What is the best way to handle accounts in collections?

Feb 25, 2015
Helpful to 30 out of 36 people

you need a paper trail, thus the letters.

do not admit to debt. the debt validation is their job.

if the debt is past the statute of limitations, send a FOAD letter (F-Off and Die)

I had one agency claim I owed over $15K. the alleged debt was 14yrs old (did not show on credit report)

agency sent me a "friendly" reminder letter and that I could pay off the debt with "3 easy payments"

I sent a FOAD letter

they replied with a 1099-C (debt cancellation tax form) which if I recognized it would have totally screwed my tax filing (I would have owed state & fed taxes a rather large sum)

I replied with a letter to the BBB, IRS, my state DA, their state DA and of course CC'ed the agency.

They replied with a "corrected" 1099-C showing debt of $0

What is the best way to handle accounts in collections?

Feb 25, 2015
Helpful to 18 out of 22 people

Wish I could link a jpeg.

Do not call collections agancy, send a letter with a proof of reciept (think its called that, thepost office will know)

Send debt validation letter

wait 30 days

if debt is valid, try to settle

if not send follow up letter to collections agency

wait 15 days

if agency validates, try to settle

if not send another letter demanding agency removes info in 5 days or you will sue

wait 5 days

if agency removes from your credit report, you are done

if not, file a lawsuit.

What is the best way to handle accounts in collections?

Feb 25, 2015
Helpful to 12 out of 16 people

Forgot to mention:

The FOAD letter is only for alleged debt that is outside the SOL (statute of limitations, every state varies, check yours)

in your letter to collections, DO NOT SIGN IT! In fact, do not have your handwriting in any form on that letter.

People have been sued by collections and found out in court their signature on documents they have never seen before.

Discover it®

Apr 15, 2015
First Rewards card
Helpful to 16 out of 23 people

I initially applied for a Amazon/Chase card, and was denied. Since I figured thats one hard inquery I applied for this card on my cell. Spotty cell service, no internet I had issues so I ended up driving to a hotspot to try to finish the application. Before I could, Discover called me and I was approved with a CL of $5800. I do not have any baddies. 

CK EQ VantageScore 3.0 was 662. I pulled my annual free EQ report and FICO was 666. Do not know what report Discover pulls.

As of this writing, CK only shows the Discover hard pull (on EQ, CK TU does not show any hard pulls)

I took advantage of the BalanceTransfer service to pay down one of my Cap1 cards.

I do not like credit cards but they are a necessary evil (thats why 4 stars). This is my first Rewards card so it will become my primary card. I plan on paying off my 2 Cap1 cards and toss them into my safe but keep open just for the credit history and open credit line. The toy card (Cap1 bought it from Orchard Bank a few years ago) has a high intrest rate, annual fee and very low limit so that one I will probably close out once the dust settles.

will my student loans be affected by filing bankruptcy

Feb 26, 2015

student loans may not be removed by bankruptcy

**in some extreme rare cases they can be, but it is very rare and difficult**

other than that, should be business as normal.

How can I get old information off of my reports?

Feb 26, 2015

I believe you can, as long as its not active or valid

sometimes its just better to wait it out and it will fall off

Active debt in Collection, don't know what it is?!

Feb 26, 2015

yes

but I do not recommend doing so by phone.

track down a mailing address and mail a letter to validate debt

do not admit to debt

do not sign letter, best to not have your handwriting anywhere

get proof of reciept on letter

I realize it is a small debt, but it does affect your score and collection agencies can get very shifty. you need a paper trail.

I charge everything on my credit cards and then pay them off but i dont see increase in score

Feb 26, 2015

I believe the CC report at the start of the billing cycle. So if you have a balance at that time, that is what gets reported thus the high utilization.

So, pay down the card before a new billing cycle.

You want to show some debt on CC but not over 30%

Paying off entirely before billing cycle can hurt too. utilization of 0% shows that you do not need a line of credit.

If I apply for an Amazon credit card will it be a hard inquiry and will it effect my credit score?

Feb 25, 2015

I imagine it will be a hard hit.

Good news is, it won't affect score much, it drops off entirely after 2 years and stops being reported after 3-12 (I hear different reports on this) months.

Amazon card nearly maxed. Should I worry?

Feb 25, 2015

Pay it off before that intrest free 6 months expires.

If you dont, you will be charged intrest for the purchase and what accumulated over that 6 months.

Results 1-10 of 11Results per page: 5 | 10 | 25Page 1 of 2   Previous | Next