Credit Report question

[puffff]

So I recently pulled my credit report, and saw there was one potentially negative item. I looked into it and found that I apparently had a utility bill that's been past due since Oct 2004 (!!!). I haven't lived at that address since May 2004, and I could've sworn I canceled the account before I left.

Anyways, I called the utility company, they say they have no record of me cancelling. I have no proof I canceled, so to argue with them would be a 'I said, they said' argument.

Now the problem is this is affecting my credit score really bad. I suppose I should pay off the balance immediately? Once I do this, all the late payment items will remain on my report and continue to kill my score? Is there anything I can do about this?

 

[salt9876]

Grin and bear it?

 

[AMDMaddness]

If you pay them it wont take it off your credit in most cases. Make a deal with them that if you pay X amount they will take it off your credit or argue with a supervisor that they indeed made the mistake and need to rectify it. If it was me I would argue my way to the CEO if I had to.. I have done this before with dish network I ended up with the person under the CEO and they fixed the issue with out a problem and apoligized for there mistake. Stand up for yourself and push it as far as you can what is there to lose?

 

[puffff]

Originally posted by: AMDMaddness
If you pay them it wont take it off your credit in most cases. Make a deal with them that if you pay X amount they will take it off your credit or argue with a supervisor that they indeed made the mistake and need to rectify it. If it was me I would argue my way to the CEO if I had to.. I have done this before with dish network I ended up with the person under the CEO and they fixed the issue with out a problem and apoligized for there mistake. Stand up for yourself and push it as far as you can what is there to lose?

Are creditors generally willing to deal so that they can collect the balance?

 

[FoBoT]

how much $ are we talking about?

 

[puffff]

Originally posted by: FoBoT
how much $ are we talking about?

$250. i'd gladly skip the hassle of disputing and paying off the balance if it meant having it removed from my credit report.

 

[Descartes]

Do NOT just pay it off... yet. Send them a certified letter explaining your situation and tell them that you would like to satisfy the account in exchange for deleting the line on your report. If you pay the account now you will get a "Paid after collection" note on the account; worse, they'll update the date of last activity thus making it 7 years + 180 days before the negative is removed.

Make sure you are covered before you pay.

 

[Dulanic]

Originally posted by: Descartes
Do NOT just pay it off... yet. Send them a certified letter explaining your situation and tell them that you would like to satisfy the account in exchange for deleting the line on your report. If you pay the account now you will get a "Paid after collection" note on the account; worse, they'll update the date of last activity thus making it 7 years + 180 days before the negative is removed.

Make sure you are covered before you pay.

By law they can not do that, keep in mind I'm not saying they don't. But legally they can not, by law it comes off 7 years after date it first went delinquent.

I agree, fight first go up the ladder, you may just get the whole thing taken care of. If not tell them you still believe it to be their mistake, however you will pay it IF they remove it from your credit report. Ask for a letter before payment that upon payment it will be removed. Never pay first just on their word.

 

[puffff]

Originally posted by: Descartes
Do NOT just pay it off... yet. Send them a certified letter explaining your situation and tell them that you would like to satisfy the account in exchange for deleting the line on your report. If you pay the account now you will get a "Paid after collection" note on the account; worse, they'll update the date of last activity thus making it 7 years + 180 days before the negative is removed.

Make sure you are covered before you pay.

Negotiation should be done over mail and not over phone right? Or can I talk to them via phone and just make sure I have a letter outlining the final agreement at the end?

 

[Mayfriday0529]

I just had a bankruptcy negative statement removed from my credit score. I wrote a letter to the loan company and they replied back saying that they would tell the credit companies to remove it.

write a letter and send it certified. Also start an inquiry with the Credit Score companies.

 

[Descartes]

Originally posted by: puffff

Originally posted by: Descartes
Do NOT just pay it off... yet. Send them a certified letter explaining your situation and tell them that you would like to satisfy the account in exchange for deleting the line on your report. If you pay the account now you will get a "Paid after collection" note on the account; worse, they'll update the date of last activity thus making it 7 years + 180 days before the negative is removed.

Make sure you are covered before you pay.

Negotiation should be done over mail and not over phone right? Or can I talk to them via phone and just make sure I have a letter outlining the final agreement at the end?

That is correct. Never negotiate anything over the phone. The less information you provide the better. Certain actions can be reasonably performed online, but stickier situations like the OP is in require more official communications as he's still within the statute thus allowing the original creditor to sue.

If you're just following up to insure that you have an incoming letter then there's little problem with that. The only reason you need to communicate via letter is so you can establish a paper trail. This is why you need to certify and get a return receipt for every letter you send. If they don't respond within appropriate timeframes as are defined by the FDCPA or FCRA (depending on what you're doing) you have a greater ability to address the issue.

 

[Descartes]

Originally posted by: Dulanic

Originally posted by: Descartes
Do NOT just pay it off... yet. Send them a certified letter explaining your situation and tell them that you would like to satisfy the account in exchange for deleting the line on your report. If you pay the account now you will get a "Paid after collection" note on the account; worse, they'll update the date of last activity thus making it 7 years + 180 days before the negative is removed.

Make sure you are covered before you pay.

By law they can not do that, keep in mind I'm not saying they don't. But legally they can not, by law it comes off 7 years after date it first went delinquent.

I agree, fight first go up the ladder, you may just get the whole thing taken care of. If not tell them you still believe it to be their mistake, however you will pay it IF they remove it from your credit report. Ask for a letter before payment that upon payment it will be removed. Never pay first just on their word.

Well, section C subparagraph 1 of the FCRA says this:

(1) In general. The 7-year period referred to in paragraphs (4) and (6)(2) of subsection (a) shall begin, with respect to any delinquent account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and loss, or similar action.

So really it depends on when the delinquency commences, so maybe what I said wasn't exactly clear. I do know that some bureaus, especially Experian, sometimes update the DOLA even when you dispute an item. This has a negative impact on your score.

In fact, I think all bureaus use the DOLA to indicate when they should report, and the DOLA is indeed updated when you make a payment on a collection account. I'll have to check into this a little further. It's been a while.

 

[zanieladie]

Time will help your credit score as long as you continue to remain current with your bills.

 

[Descartes]

Originally posted by: zanieladie
Time will help your credit score as long as you continue to remain current with your bills.

Yeah... 7 years!

I know there are unscrupulous people that exploit consumer law for their own benefit, but 7 years is a long time to pay for a small mistake.

A charge off/collection account, no matter the amount, will be extremely detrimental to your overall credit health all the way up until the 7 year mark. You can get enough positives to offset it over the years, but it will cost you in the form of dramatically higher rates.

 

[puffff]

Originally posted by: Descartes

Originally posted by: zanieladie
Time will help your credit score as long as you continue to remain current with your bills.

Yeah... 7 years!

I know there are unscrupulous people that exploit consumer law for their own benefit, but 7 years is a long time to pay for a small mistake.

A charge off/collection account, no matter the amount, will be extremely detrimental to your overall credit health all the way up until the 7 year mark. You can get enough positives to offset it over the years, but it will cost you in the form of dramatically higher rates.

7 years is just too long This honestly has to be just miscommunication. I've paid all my other bills on time, and would've paid this one had I know about it. I just thought the account was closed.

 

[Fern]

Originally posted by: puffff
So I recently pulled my credit report, and saw there was one potentially negative item. I looked into it and found that I apparently had a utility bill that's been past due since Oct 2004 (!!!). I haven't lived at that address since May 2004, and I could've sworn I canceled the account before I left.

Who paid the bill between May & October if you didn't live there?

Show them proof taht you left in May '04. I.e., termination of rental agreement or deed of sale (use copies of closing documents).

How did the cancelation occur in October? Who started it up after it was terminated?

I'm wondering if you left and forgot to change it, how it did occur that it was changed, and who was mooching off your name?

If you can get them to see you as a "victim" and not a scammer (that's the other person) you may have a better chance of cooperation.

 

[puffff]

Originally posted by: Fern

Originally posted by: puffff
So I recently pulled my credit report, and saw there was one potentially negative item. I looked into it and found that I apparently had a utility bill that's been past due since Oct 2004 (!!!). I haven't lived at that address since May 2004, and I could've sworn I canceled the account before I left.

Who paid the bill between May & October if you didn't live there?

Show them proof taht you left in May '04. I.e., termination of rental agreement or deed of sale (use copies of closing documents).

How did the cancelation occur in October? Who started it up after it was terminated?

I'm wondering if you left and forgot to change it, how it did occur that it was changed, and who was mooching off your name?

If you can get them to see you as a "victim" and not a scammer (that's the other person) you may have a better chance of cooperation.

cancellation apparently happened in aug 2005, when some other tenant moved in and finally cancelled. someone must've been mooching free electricity under my name. the utility co. probably just waited 3 months before reporting it past due, which is why there's the may '04 to oct '04 gap.

i was on month to month with my lease, so even if i could dig up my old lease, i dont know if i could prove anything. the best i could show was that all my other billing addresse changed, like where i sent my cc statements

oh man, this sucks.

 

[RCN]

I would just dispute it as "paid in full" or "not mine". Then if they did respond I would try other methods. Disputing it through the credit bureaus is easiest.


I definately wouldn't pay it unless they agreed to remove it in writing................

 

[Descartes]

Originally posted by: RCN
I would just dispute it as "paid in full" or "not mine". Then if they did respond I would try other methods. Disputing it through the credit bureaus is easiest.


I definately wouldn't pay it unless they agreed to remove it in writing................

Normally I would say do the same, but be especially careful here. Utility companies keep better records than a lot of your tiny collection/junk-debt buying companies, so a dispute might likely destroy any opportunity you have for a pay for delete.

Seriously, just do this:

1) Write them explaining your situation. Be courteous and ask that them to remove the line on your report if you pay. Make sure you get their confirmation in writing if they do indeed agree to it.

2) If they say no, you're really in for some potential trouble. They might sell it to a collection company, but if they do this just reply to them immediately after receiving their notice that you wish them to validate their claims.

3) Dispute it as RCN suggested. Think twice before doing this.

Many reasonable companies will just remove it if you pay and ask politely in writing. Dispute and you might just piss off whoever handles collections. Accounts like these can spend years being picked up by different collections companies (if you don't pay it that is), so it's better to just resolve it now.

 

[Britboy]

Originally posted by: RCN
I would just dispute it as "paid in full" or "not mine". Then if they did respond I would try other methods. Disputing it through the credit bureaus is easiest.


I definately wouldn't pay it unless they agreed to remove it in writing................

Good advice. I did the same thing for a b.s. $130 charge and it was removed. It is very unlikely that the utility company will bother responding and they will have to remove it.

It should do wonders for your credit score, mine was around 680 with the 'bad debt' on there, I checked 6 months later and it was up to 780 with very little other activity to attribute the change to.

 

[Descartes]

Originally posted by: Britboy

Originally posted by: RCN
I would just dispute it as "paid in full" or "not mine". Then if they did respond I would try other methods. Disputing it through the credit bureaus is easiest.


I definately wouldn't pay it unless they agreed to remove it in writing................

Good advice. I did the same thing for a b.s. $130 charge and it was removed. It is very unlikely that the utility company will bother responding and they will have to remove it.

It should do wonders for your credit score, mine was around 680 with the 'bad debt' on there, I checked 6 months later and it was up to 780 with very little other activity to attribute the change to.

Maybe you missed the part where he said, "they have no proof of me cancelling." That will be sufficient for verification from the credit bureaus, and the account will stay; worse, as I described above, he will likely screw his changes of a pay-for-delete.

I sound like a broken record, but I'll say it again: Do not dispute! Use it only after exercising the better (and more honest) option.

 

[Dulanic]

Originally posted by: Descartes

Originally posted by: Dulanic

Originally posted by: Descartes
Do NOT just pay it off... yet. Send them a certified letter explaining your situation and tell them that you would like to satisfy the account in exchange for deleting the line on your report. If you pay the account now you will get a "Paid after collection" note on the account; worse, they'll update the date of last activity thus making it 7 years + 180 days before the negative is removed.

Make sure you are covered before you pay.

By law they can not do that, keep in mind I'm not saying they don't. But legally they can not, by law it comes off 7 years after date it first went delinquent.

I agree, fight first go up the ladder, you may just get the whole thing taken care of. If not tell them you still believe it to be their mistake, however you will pay it IF they remove it from your credit report. Ask for a letter before payment that upon payment it will be removed. Never pay first just on their word.

Well, section C subparagraph 1 of the FCRA says this:

(1) In general. The 7-year period referred to in paragraphs (4) and (6)(2) of subsection (a) shall begin, with respect to any delinquent account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and loss, or similar action.

So really it depends on when the delinquency commences, so maybe what I said wasn't exactly clear. I do know that some bureaus, especially Experian, sometimes update the DOLA even when you dispute an item. This has a negative impact on your score.

In fact, I think all bureaus use the DOLA to indicate when they should report, and the DOLA is indeed updated when you make a payment on a collection account. I'll have to check into this a little further. It's been a while.

http://www.ftc.gov/os/statutes/fcra/amason.htm

They should never update based upon DOLA, if they do you can get it fixed. However like I said before, the law and what they do are 2 different things.

 

[Britboy]

I did read that part and it doesn't change my suggestion. I had no proof I was not responsible for the debt and they removed it anyway. If it's a small amount I really dont think it's worth these places fighting you on it.

Anyway it's the OP's credit report and up to him what he decides to do about it.

 

[ValkyrieofHouston]

Originally posted by: puffff
So I recently pulled my credit report, and saw there was one potentially negative item. I looked into it and found that I apparently had a utility bill that's been past due since Oct 2004 (!!!). I haven't lived at that address since May 2004, and I could've sworn I canceled the account before I left.

Anyways, I called the utility company, they say they have no record of me cancelling. I have no proof I canceled, so to argue with them would be a 'I said, they said' argument.

Now the problem is this is affecting my credit score really bad. I suppose I should pay off the balance immediately? Once I do this, all the late payment items will remain on my report and continue to kill my score? Is there anything I can do about this?

You can choose not to pay it at all and send a letter to all 3 credit bureaus disputing the claim on your report. Send a letter to the electric company asking them to prove that you had not cancelled. The burden of proof is on them in the eyes of the credit bureau. If they cannot come up with proof.. and you can prove to the credit bureau or demonstrate somehow that you cancelled and moved on, then I would put this in your letter of dispute and demand that the credit bureaus remove the negative mark from your credit report. Continue to stay on it and be persistent. Eventually they will remove it. I have done this in the past and have been successful.

Good luck!

 

[puffff]

Originally posted by: ValkyrieofHouston

Originally posted by: puffff
So I recently pulled my credit report, and saw there was one potentially negative item. I looked into it and found that I apparently had a utility bill that's been past due since Oct 2004 (!!!). I haven't lived at that address since May 2004, and I could've sworn I canceled the account before I left.

Anyways, I called the utility company, they say they have no record of me cancelling. I have no proof I canceled, so to argue with them would be a 'I said, they said' argument.

Now the problem is this is affecting my credit score really bad. I suppose I should pay off the balance immediately? Once I do this, all the late payment items will remain on my report and continue to kill my score? Is there anything I can do about this?

You can choose not to pay it at all and send a letter to all 3 credit bureaus disputing the claim on your report. Send a letter to the electric company asking them to prove that you had not cancelled. The burden of proof is on them in the eyes of the credit bureau. If they cannot come up with proof.. and you can prove to the credit bureau or demonstrate somehow that you cancelled and moved on, then I would put this in your letter of dispute and demand that the credit bureaus remove the negative mark from your credit report. Continue to stay on it and be persistent. Eventually they will remove it. I have done this in the past and have been successful.

Good luck!

My problem is I may not have proof myself. I can say I called, but I didnt record the conversation or anything. I never thought to.

What I did manage to do is get in touch with the guy who lived there after me. He doesnt live there anymore but he claims to have had the electric bill under his name. He's calling the utility today to see if he can dig up his account number. If he did have an account there, I think I have all the proof I need, because you cant have two open accounts at the same address, right?