My credit score

[Dunit35]

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.

[stlchiefs]

Originally Posted by DaneMcCloud

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).

I figured you had a Black Card.

[Time's Yours]

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.

[The Franchise]

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?

[Mr. Flopnuts]

Originally Posted by phillip

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.

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.

[Time's Yours]

Originally Posted by Mr. Flopnuts

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.

[Skip Towne]

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?

[Time's Yours]

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.

[Mosbonian]

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
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