My credit score
 

I got a call today from a collection agency or something. I was confused and pissed at the same time. I knew exactly what they were talking about because I tried getting my account switched to my new bank but the company had no clue how to do it. So, eventually I forgot about it and their bank or collection agency called today. The balance was 434 and they told me I could pay it all now or garnish out of my paycheck. They said if it was garnished it would hurt my credit score. So, I got the cash and its getting paid off tomorrow.

I checked my credit score a little bit ago and that $434 was on the report. What's going to happen when it gets paid off? I've got something else on there thats negative and I have no idea what it is.

You'll need to contact or write a letter to each of the credit score agencies after you've paid off your outstanding balance and request that they remove it from your record.

Your credit score is very important. Make sure you check your credit regularly and keep it clean.

Best of luck!

<object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/bv7sHBMJj4g&hl=en&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/bv7sHBMJj4g&hl=en&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object>

I've heard that it can hurt you if you check your credit too many times. Where is the best place to check it anyways?

I've got student loans on there and two credit cards and one credit card that I paid off a couple years ago.

I went to that freecreditreport site and checked it. When should I check it again?

No, it can hurt your score if too many creditors check your credit score (applying for credit cards, etc.).

I use Equifax to check my credit. It checks all three agencies and it's good to check it often for fraud.

I've been an Equifax member for years and check it every few months.

Identity theft and fraud is way more prevalent than you'd think.

When that $454 gets paid tomorrow should I call them friday and request that they take it off?

Will it raise my score any?

Unfortunately that doesn't guarantee that they will remove it....in order to have it removed it must either be something submitted in error, or the business that placed it will have to request/authorize it to be removed.

mmaddog
*******

You can call them or contact them via the internet (you may be able to do it via freecreditreport.com. I'm not sure. You can with Equifax).

It should definitely raise your score but it normally takes at least 90 days.

When I was younger, I was able to get a few late payments removed simply by being polite and asking. I told them it was affecting my ability to get a loan and they removed them immediately.

I also disputed the fact that they were late (they missed by like one day). This was before online payments.

So I guess what I'm suggesting is that it doesn't hurt to ask.

free triple score dot com, free triple score dot com, free triple scorpl.... damn it

A couple of questions:

1) Did you ever receive your Right To Cure letter from the Creditor?

2) Did the person who called you identify themselves as a 3rd Party Agency attempting to collect a debt?

mmaddog
*******

You are correct...it never hurts to ask, but nothing is guaranteed.

Part of the ability to get something removed depends on the creditor and their willingness to be flexible.

mmaddog
*******

Right.

But a lot of times, the agencies will remove something if it's been a reasonable amount of time after it's been paid.

I seriously doubt that if they were to refuse his request, it would stay on his record for 3 years. One year, maybe. Which is why I suggested that he check it often.

Once it's been paid, it's out of the creditor's hands and up to the credit rating agencies.

I am actually speaking this weekend at an Industry Credit group on Fraud...unfortunately I have become more of an expert on Fraud (Business and Credit Card) that I would like to admit to.

You'd be surprised at the typical "fraud artist" these days.....it could be your best friend, your neighbor, or even someone on Chiefs Planet.

mmaddog
*******

No, I'm with you. I've had CC fraud twice in the past year. It's very important to check your CC statement(s) each and every month for fraud and to check your credit report as well.

In reality, if it was placed with a Collection Agency and was valid, regardless of whether or not it gets paid, it can remain on his Credit Report as long as 7 years.

The rules and regulations for the FCRA and the FDCPA are pretty straight forward.

mmaddog
*******

Never got a letter from anybody.

I can't remember on that question. I can remember them saying they were calling because of some gym account that was overdue.

When you pay for a meal at a restaurant, do you protest when the waiter or waitress get your card and then disappear somewhere that you can't see ?

Most people don't know that each card issuer (Visa, MC, AE, etc) has a distinctive set of identify numbers for their cards.

mmaddog
*******

They said if I didn't do something by the end of the day they were going to do something about it...what were they going to do?

They made it sound like if I paid it off now it wouldn't hurt my credit but obviously it already did. The date on it said 10-1-08

First....they are required to send you a Right to Cure letter. Most will tell you "it was mailed to your address that was listed on your credit application".
You should ask them if they sent it Certified Mail-Return Receipt Requested. If they didn't then that was their first mistake.

Second, if it is a 3rd party agency making the call to you then they are required to acknowledge that in their first contact.

mmaddog
*******

Are you referring to the 3 or 4 digit codes on the front or back? If so, I'm very familiar with those numbers. I have all of my CC numbers memorized, as well as the security codes.

I do tens of thousands of dollars via the internet each year and both fraud cases involved out of state cases.

Generally, waiters and waitresses are fairly quick but I'll keep that in mind in the future.

Thanks!

Well, it's getting paid tomorrow.

What's my next step on this problem? And what should I do about this other $238 problem on my report...I don't know what it is about.

Wow...a rogue agency.

First of all, depending on their verbage, that could be construed as threatening, which is not allowed under the FDCPA.

Second, advising you that it wouldn't hurt your credit rating if you paid it off now, by some standards could be considered extortion. (You couldn't get 2 attorney's to agree on that interpretation though)

mmaddog
*******

So...I am clueless on this stuff. What do you recommend I do?

The first lady that called me was very nice but did say it wouldn't hurt my credit if I paid now. The second dude was a dickhead and was the one saying I had to do it now or else...I asked for the lady the third time I called them.

If you don't negotiate the removal of that mark before you pay it, you can forget about it. They aren't going to do it. Call them tomorrow and tell them you've mailed a certified letter disputing the validity of the bill, that you're recording the phone call, and they are now responsible to provide the original contract with your signature on the debt.

When the collector gets flustered, tell him you'll be more than happy to pay it, provided they will have it removed from your credit and you'll require the arrangement in writing. There's a couple hundred dollars worth of advice for free. Trust me, I'm a doctor.

kip winger stole mine ...twice.... headding for a heeearrrtbreak

Doctor Rosenpenis?

Nope..I'm talking about the first four digits of your credit card...each one has a distinctive numbering sequence indigenous to their brand. If you have both a Visa and a MC look at the starting numbers and you can see what I am talking about.

Most people never stop to think about the type of card that they have...and how it targets them for fraud. Let's say you have a American Express Plum card.....that one tells everyone your special.

I keep one generic card with a very small Credit Limit that I use at restaurants, shopping malls, and online. That way if the numbers get stolen, there is very little they can get from me.

mmaddog
*******

LMAO

http://img.photobucket.com/albums/v7...The****Out.gif

Interesting.

All I use is my American Express "Plum" card (I always thought it was red. Maybe my wife IS right and I'm color blind).

This guy's been doing what I do for longer than I've been doing what I do. I know firsthand he knows his stuff.

Ask them the questions about the Right to Cure letter...also ask them to send you supporting documentation for the debt. Let them know that until they substantiate the balance to your satisfaction, then they need to report this as a disputed balance.

mmaddog
*******

Let me add one more step to this. After you tell them you've mailed the letter, and recorded the phone call and that you dispute the debt, hang up the phone. Call them in the middle of next week and confirm receipt of the letter you never mailed.

When they say they haven't gotten it, tell them you'd be willing to pay the balance to avoid the hassle but only if they're willing to remove the mark from your credit as you're confident the debt isn't valid. Make sure you tell them you want it in writing. They'll bite, I promise. They don't care about anything but the money.

They did say something about sending something in the mail about paying it off.

What kind of supporting documentation are you referring too?

I'm lost about this stuff obviously. Sustantiate the balance and what not has me clueless.

That's no joke.

My fiance started getting past due bills from her health insurer. They claimed that she had to pay office visits that were paid by insurance 2, 3, even 4 years in the past. Twenty dollars here, one hundred there, etc. They told her if she didn't comply within "X" number of days, they would put a bad mark against her credit, which scared her. So she paid these things until she used up all of her savings, and then couldn't pay them anymore. She called and asked them stop charging her for things that had been paid and to fix her credit. They said they would look into it and that flat out, they didn't have to make any requests to the credit reporting agencies, even though they said it was probably their error.

Well, this all was happening when we first started dating so when I found out about it, I called them up and bitched them out and we haven't gotten an old bill since. Her credit is in a shambles though. All of her APR's on her credit cards have gone through the roof and she can't even get small personal loans from our hometown credit union she has been a member of since high school (wanted to transfer a balance for her jet ski).

A banker friend of hers is trying to fight it, but so far no luck. Luckily I have nearly perfect credit, so I was able to buy our home on my own. But damn, don't mess around with this stuff. You have to be aggressive and persistent because big companies like insurers and credit card companies:
A) Don't care about you.
B) Have no motivation for helping you out.
C) Don't care about you.

By the way, through a few connections we were able to talk to the vice president of the health insurer about this (in passing as it was). The guy claims that this is absurd that it would go on and that we should see full reimbursement in the near future (I've had a friend of mine in the business tell me it's as simple as messing up a few digits on a claim). This was at least 6 months ago. I'm not holding my breath.

As a Plum card holder, you get special protection. But it still denotes that you might have a very large Credit Limit which makes you a target. You're a little more protective than most people...I bet not 70% of the people on here truly check their CC statement every month.

BTW....your waiter/waitress is probably more trustworthy than I intimated, especially if you are a frequent customer. The one that you need to be cognizant of is the "short termer"....all they need is a pencil and a piece of paper and your card number is theirs. (and it won't be because they wrote down your card number...)

mmaddog
*******

You are absolutely right and thank you for the info. I've never experienced a problem in California with fraud (or any company based in CA) but I'll definitely be aware if any place unfamiliar keeps my card for an inordinate amount of time.

Thanks again!

PS - What's with the Black Visa? I told I qualified and get all kinds of "special" treatment but in your professional opinion, is it worth my time (there is a fee) or is it just nonsense? Thanks again!.

They are required to send you information that tells you about the balance they are trying to collect. If it's for a gym membership, then there should be a statement they can send you for the balance owed. Make them prove to you that you owe the balance...it's something they are required to do.

Once they have proven that you legitimately owe it...then do as Mr. Flopnuts says, and use that knowledge as a bargaining chip to gain the erasure of the mark on your credit report. And if they agree..GET IT IN WRITING!

Mr. Flopnuts advice is spot-on....all they care about is getting the money. If they have to farm it out to an Attorney their cut goes from 18-25% to more like 10%.

mmaddog
*******

The problem is that it's automatically being taken out of my debit card tomorrow at some point.

I didn't know what to say to them since it was my first issue with credit problems.

That depends on whether or not you want to pay the $495 fee, and whether or not you truly need the "extra' perks. For my 2 cents it's just a revenue source for the Banks....by being a diligent card member you can get the same perks from American Express. And if you qualified for the Black Visa, you could probably take that info to American Express and get them to issue you a Centurion Card. (That way you can pretend to be James Bond)

mmaddog
*******

Since you have given them your debit card and the approval, there's not much you can do at this time...but now you are better prepared in case something like this happens again.

mmaddog
*******

LMAO

Again, thanks for the info.

Signed,

Dane "James Bond" McCloud

LMAO

One of the most powerful Lobbying groups on Capitol Hill are those representing the interests of the Credit Card companies...I'm still shocked that the recent legislation passed.

mmaddog
*******

You'll have to jump through some major hoops at this point. If they record their calls, and you confirmed that you recognized the debt, told them where you work, and gave them your bank information (Yes your account number can be obtained with your debit card) then you're pretty much stuck. It's going to be on your credit, but it will be reported as paid. It hurts your score, and will be there for 7 years.

If you didn't confirm those things, I'll check this thread in the morning and we can take it from there. You still have options.

Anytime....just remember those of us less fortunate when you toss away the next "Bond girl"

Unfortunately all 3rd Part Agencies record all calls these days for just that very reason, for training purposes, and for validations of promises/arrangements.

mmaddog
*******

If I call them tomorrow and bitch about them saying it wouldn't hurt my credit score even though it already has hurt it...what will happen?

Not much probably...they have what they were coming for, money.

mmaddog
*******

I just told them whatever the debt is I'll pay it. I told them I had a job but didn't tell them where. If I would have known about all this stuff you guys are saying and they wouldn't have been in such a demand to get it now...I would've waited.

Is it illegal when they don't tell you it's being recorded?

Dicks probably knew that I was a college student (with college loans being on my credit) and figured if they attacked me fast, I wouldn't know what to do.

If they recorded you without letting you know....yes.

mmaddog
*******

Probably right...wish I could have helped sooner.

mmaddog
*******

I'm not so sure about that. I'm pretty sure in most places you can be audibly recorded and not visually, and vice versa without consent. About the only place you are federally protected to not be recorded in any form anymore is the bathroom.

FWIW a collection on your credit reoprt is going to cost you 30-40 points. I'd expect 40.

If they are making a Collection contact, and want to use it as part of the collection process, they must advise you that they are recording for validation purposes. That's why you always hear the generic explanation on greeting messages that the phone call may be recorded for:

1) Training purposes

2) Your "protections" (notice I put that in quotes)

mmaddog
*******

Haiving a security clearance, I need to stay on top of my credit score and what's on those reports. I buy the $15.00 for credit monitering and get a credit report any time I want. On most of those sites it allows you to dispute anything pretty easily. Use to be a pain in the butt.

I figured you had a Black Card. :p

One thing about Flopnuts' post:

I was dealing with this same kind of thing for an apartment move out fee. What I learned from that was, at least in my case, the collection agency could not remove the collection from my credit report.

After I was extremely persistent, he told me roundaboutly that I would have to pay the apartment complex directly and convince the complex to tell the collection agency that it was error and should be removed.

The collection agency was not allowed to tell the credit monitors that it was an error without authorization from the creditor (apartment complex).

So what I think you want to do is cancel the payment to the collection agency, and then negotiate with the gym.

Hey.....question here for the credit gurus.

I have student loans that I'm not paying on as of right now (I'm still in school) and they're reporting to my credit as over the limit because they're tacking on interest and putting down the credit limit as the amount of the student loans that they gave me. So say for instance I have $10,000 in student loans....they're putting on my credit that I owe them $10,500 which is saying that I'm over the limit on that loan. Are they allowed to do that?

That collector lied to you. Collection agencies use that as a negotiating tactic a lot. The only thing is, if they do it too much the credit reporting agencies will stop allowing them to report. So they have to be on top of it. Dunit, if you REALLY want to try this out just dispute the charge with your bank when it comes on, and call the collection agency and give them the exact spiel I gave you last night. It's going to be A LOT of work, but you can still get it done.

As far as permission to record you, it depends on what state you're in. WA, CO, and a dozen others are dual requirement states meaning both parties have to give permission. The way they trick you is by saying all calls are recorded and monitored for training purposes. When you stay on the phone, you've basically given your consent. If you don't want it recorded, hang up.

I assumed the collection agency had a contract with the complex that wouldn't allow him to remove marks without their permission saying it was truly error.

When he told me to call the complex, he said it all sneaky-like, as if he was giving me some secret advice. I believed him because from his point of view:

I pay the complex directly, they tell the collection agency it was an error, collection agency withdraws bad credit mark, and then collection agency would not get commission. So if he's telling me something that removes his "cut," I'd think he's telling the truth.

I ended up leaving two messages with the complex and my calls were not returned. I still have $197 collection mark on my credit report, but now it has a "disputed" next to it that the collection agency added.

I was kicking around the idea of filing a pro se lawsuit against the complex to get them to respond, but I have no way of proving that I don't owe the debt. The manager who said I wouldn't owe anything when I moved out is probably no longer there, and I have no idea what her name was.

When you have been paying on a note for a couple of years and it finally pays off, does the bank report that as well? Does it raise your credit score?

Paying the note on time raises the score. I don't think paying it off completely helps your score, but it helps your income to debt ratio, which in turn helps you get a loan b/c banks consider that along with your score.

Here are a couple of links for those who have som questions..

FCRA (Fair Credit Reporting Act)

http://en.wikipedia.org/wiki/Fair_Credit_Reporting_Act


FDCPA (Fair Debt Collections Practices Act)

http://en.wikipedia.org/wiki/Fair_De..._Practices_Act

These are the Wiki links....I was going to post the Government links but they are too long and boring to read.

Here is an FTC link that is FAQ

http://www.ftc.gov/bcp/edu/pubs/cons...edit/cre18.pdf

mmaddog
*******