Anyone dealt with collections and removing it from your report before?

[codex57]

So I'm looking to refi and pulled my credit report.

There's a collections action on there. It appears to have been for around $150, but due to some miscommunication, I found out about it long after it went to collections. So, it looks like I'm stuck dealing with the collection agency. It's being reported at around $600. Not sure why the difference.

Anyways, anyone ever dealt with collection agencies before? My main thing is I want it off my credit report. ASAP. At this point, I'm willing to just pay $600 altho I'd prefer to pay less obviously.

The other weird thing is it only shows up on two of the credit agencies. On the 3rd one, it's not there so my credit score is in the expected 800 range.

[hellokitty]

They probably added on fees on top of the $150, and that's probably how it ended up getting to be $600. Have you called whatever company/agency it was that you had originally owed $ to? I don't know how it works now, but my parents used to send ppl to collections that didn't pay their bill and I guess that it motivated enough ppl to pay up in order to get it taken off their record. I'd check into just paying it off (even if that means the $600) and getting it removed from your credit report.

[dogmom]

My understanding is you can generally negotiate the fees. My only experience was a local hospital I didn't realize I owed money to who sent me two identical bills, so I paid one and thought that was it. Turns out I had to pay both of them. I think they sent one 2 weeks later, and then turned it over to a collection agency. They took just the amount owed.

Here's the BBB suggestions:
http://www.la.bbb.org/GIReport.aspx?DocumentID=69

[3isEnough]

I have limited experience with a similar situation. I had $40ish go to collections due to a dentist bill I never received. It hurt my credit scores a lot and I too first learned about it as part of a refi.

Based on the limited reading I did re collections, I seem to recall the number one piece of advice was to deal directly with the source of the debt and not collections in order to try and get it removed. Apparently if you pay the collections company the item will show on your credit report as paid, but still be shown as a bad debt or something like that (some kind of black mark will remain for 7 years).

Instead, what was recommended was to contact the source directly and pay them, but solely on the condition that they agree to remove the item from collections and your credit report. Apparently the only way this can be done is for the party (the creditor) to state that it was sent to collections in error.

I contacted my dentist and told them I would pay them the $40 immediately, on the condition that they advise the collections company it was an error and should be removed (and of course, I memorialized this all in writing with my dentist). I paid and thought all was good, until a short time later I realized the dentist had not done what they agreed to do. I called, they argued with me, and then I reminded them (and faxed a copy of my letter) that they were only permitted to charge my card on the express condition that they cancel the collections, etc. I said that since they hadn't done their part, they had made an unauthorized charge to my credit card. This spurred them to action and it was all taken care of.

I know I'm rambling, but bottom line is just paying collections won't solve your problem. Start at the source. You can find more info on the Credit Boards here http://creditboards.com/forums/. I've not really explored that site but people on FatWallet talk about them all the time and FW is where I learned the payment/collections info.

Good luck!

ETA: Btw, I pull my credit reports at least once a year to check them and there are always different entries that show up on 2 out of the 3 reports. When you refi I believe they take your middle score, so even though you have an 800 on one of your reports it's the middle score with the collections entry that's going to hurt you.

[Multimama]

I've had a similar issue in the past (although not sure it was resolved in my favor re: credit report so no advice). Can someone clue me on how to check my credit report?

[codex57]

I talked to the original owner of the debt, but they said they sold it and can't pull it back. I think now I'm hoping for something like a "pay to delete"?

On your credit report, there's a section that says "adverse accounts" or something like that.

[codex57]

double post

[LizLemon]

I talked to the original owner of the debt, but they said they sold it and can't pull it back. I think now I'm hoping for something like a "pay to delete"?

On your credit report, there's a section that says "adverse accounts" or something like that.

I'd look into the repercussions of that before doing it. I agree with the previous poster's advice. Sometimes trying to "fix" a problem on a credit report can do more harm than just leaving it, depending on the circumstances. How old is this collection? If it will fall off your credit report soon, paying it will just refresh it and keep it on your credit report for another 7 years.

[Tinkerbell313]

I've had a similar issue in the past (although not sure it was resolved in my favor re: credit report so no advice). Can someone clue me on how to check my credit report?

Here is the FTC's web page (http://www.consumer.ftc.gov/articles/0155-free-credit-reports) speaking about the free credit reports as well as the link to go to annualcreditreport.com to obtain your free reports. You can request a free copy from each of the nationwide reporting companies every 12 months...so you would get three credit reports.

I stagger my requests...so this month I will request from Experien, in 4 months I will request TransUnion and then 4 months after that I will request from Equifax. Then, 4 months after that I start the cycle all over again.

[gamma]

Last Sunday, February 10th, 60 Minutes did a segment on credit reports. It was disheartening to find out that attempted corrections to your credit report go nowhere! I would think you will be able to watch it On Demand.

[Multimama]

Here is the FTC's web page speaking about the free credit reports as well as the link to go to annualcreditreport.com to obtain your free reports. You can request a free copy from each of the nationwide reporting companies every 12 months...so you would get three credit reports.

I stagger my requests...so this month I will request from Experien, in 4 months I will request TransUnion and then 4 months after that I will request from Equifax. Then, 4 months after that I start the cycle all over again.

Thanks! No link in your post, but I think google can help me using the info you gave. So you request from each individually and can still get all three for free as long as you only request from each one once every twelve months? Uggh. I don't want to look because I'm afraid that this collection-in-error is going to be on there...

[Tinkerbell313]

Thanks! No link in your post, but I think google can help me using the info you gave. So you request from each individually and can still get all three for free as long as you only request from each one once every twelve months? Uggh. I don't want to look because I'm afraid that this collection-in-error is going to be on there...

Ughhhhh....I am so sorry...here is the link I was referring to in that other post (and I added it into that post as well)

http://www.consumer.ftc.gov/articles/0155-free-credit-reports

And yes, you can get all three for free as long as you only request from each one once every 12 months.