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Question By
Sneaker98

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Collections Account Question
I have been working on credit repair for about a year now. I started at 621 and have moved up to 650 by disputing file info, getting a CC that I keep under 30% and pay off monthly. I was at one point up to 690 until an old tax lein showed up from 2006 that had been paid off that same year. I disputed it and it was removed a few months ago, but the score has not recovered.

Anyway, the one big thing killing me is collections accounts. The first one is at a Collection Agency called Resident Collect. It is from an apartment I broke a lease on. The amount in collections is $2,798 and I live paycheck to paycheck and cannot pay this off. It was placed in collection on 9/28/2009 and the last update dat is 7/30/13, likely when I sent a validation letter.

My question this is, what is the best way to proceed? I have heard of settlement offers, pay for delete offers, and monthly payments. Not sure which is the best way to get this taken care of and off my report, if possible.

I have two other adverse accounts, both from student loans from Sallie Mae. The accounts have long since been sold to another agency, and I almost have them paid off. The company they were sold to show them as positive accounts, but Sallie Mae continues to show negative and they show they were closed on 5/28/2009. Do I have to just wait for the 7 years before they no longer show up as a negative account?


Thanks in advance

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First, regarding the Resident Collect.  You can call them and ask for a "Pay Per Delete" arrangement.  You both agree on a payment amount (either in full or less that full amount, whatever you can negotiate) but only if they agree in writing to delete the account from all three bureaus once paid.  Regarding Sallie Mae, they are the absolute worst with credit reports and no matter how many times I've disputed SM accounts, I never see any changes.  You can dispute the SM accounts with the bureaus, but I would also go to www.consumerfinance.gov and file a complaint against Sallie Mae.  They have a horrible reputation and the CFPB has a pretty good track record, so I think that is worth a shot.  You're doing everything right, just keep up the good work.  Oh, and if you want your score to increase more, don't pay off your credit card every month, keep a tiny balance on it (1-3% of credit limit) and I swear your scores will increase after a month or two.  Best of luck!

Reply by
Sneaker98

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So are you saying that since the Sallie Mae accounts are closed they should no longer be showing as negative?

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statute of limitations

Are you aware that there is a statute of limitations that a debt collector can sue you for the debt? Some states are 3, 6, 7 years. That doesn't mean they can't try, just that they legally cannot sue you. Check it our by state and type of debt:

http://www.nolo.com/legal-encyclopedia/statute-of-limitations-state-laws-chart-29941.html

So based on the above, it may / may not be worth it to try to work it out with them. However, be very careful as 1 new payment or new agreement could reset this clock. The above only relates to when you do nothing (i'm assuming you've done nothing with this since 2009).

Reply by
Sneaker98

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Indiana SOL is 6 years. This would put this debt at not quiet 5 years, assuming the verification letter I sent did not reset the SOL. If I live with the debt until it hits six years, does that mean I can get it removed off my report, or just that they can no longer sue me for it?

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