New with a Nightmare

[akane]

OK, so I've found this forum and I will tell you just reading through this and reading all of your testimonials and helpful threads has seriously changed my outlook on my situation. Reading your stories and advice makes me want to fix this and has cured my depression. Thank you.

OK, now I have the motivation now I just need action. Here's the deal, I'm 20 years old. When I was eightteen I thought it would be a bright idea to get a credit card and also a clothing store credit card, rent an apartment which I could not afford and get myself into a mess. Now, two years later after ignoring the whole situation I've matured and realized I need to clean this up. After finding this site I worked up enough courage to look at my credit report and start figuring out what to do.

My credit report is a nightmare. Literally. Because I never once paid anything on like an immature child and everything was sent to collections. I had one credit card, one clothing store credit card, a bank account that went into collections, a bounced check in collections, as well as a judgment against me for the apartment I couldn't afford.

Even though it's sounds like a lot I've only accumulated about $3000 in debt. But the credit score is absolutely terrible. I've come to some money and I would like to pay off a majority of this debt but I don't know where I should start.

I think I made a mistake already. I made a payment over the phone with a collection agency for the bank account overdrafted. I didn't pay it all of but I plan to in a week and a half. THey told me there was no way to pay to delete. But there is isn't there? Should I sabotage the last payment until they agree? Should I call the bank to make sure it's the correct collection agency or did I just screw myself paying them?

Also, to start working on the others... Should I send a CM letter to all the other collectors with some kind of payment plan or settlement? I really would like to pay for delete all of these (Who wouldn't?) but I know the odds of this are unrealistic.

If you could help me (Anyone) it would be so greatly appreciated. I want to get this over with and get on with my life. I'm a college student and soon will be graduating and also, I just want to start being responsible in general. I have all of my credit reports, so if I didn't explain enough I will provide information if needed to someone willing to help.

I know I'm in the hole deep, but I'm so glad I found this place.. Facing this has actually helped my depression. And I'm ready to fight this mess.. May just need a little guidance.

Thanks again.

Ally.

[Trish]

Well, Ally.......you're headed in the right direction. I know exactly how you feel.
It's good you're realizing it now rather than ignoring it for several more years before you're in WAY over your head.

So......welcome. Glad you found us.

On the collection you've already paid....hmmm........just an FYI, you need to be careful giving ANY CA your bank or credit card info. You just never know. I have heard nightmare stories of CA's pulling out more than the agreed amount. I just don't trust them.
Honestly........I would put a stop payment on that if I could.......and then turn around and request validation from the CA first.

Now that you have your reports.......be sure to opt out if you haven't already and then dispute/delete personal info first. Then you can move on to disputing any TLs.

For CAs, you can do the 1 2 punch (just remember no more than 3 or 4 accts in one dispute at a time). And be sure that ANY correspondence sent to a CA be sent CMRR. You have to have good papertrails when dealing with them.

For any OCs reporting, you want to just dispute first (look for any inaccuracies and dispute as such).

As for the judgment........were you properly served? You need to check your state laws under rules of service and see. Let me know if you have trouble finding the laws......I can point you in the right direction if you need.

The other thing that I'm sure is hurting you is your history. You haven't had credit for very long since you are so young.....plus if you don't have ANY positive then that will affect your score tremendously.
Look at this thread at some of the easier ways to get credit........you need to try and get some positive TLs going to balance your report.


Well, that's a start. Just be sure to stick around and read, read, read.......and of course feel free to ask questions.

[akane]

Originally Posted by Trish

Well, Ally.......you're headed in the right direction. I know exactly how you feel.
It's good you're realizing it now rather than ignoring it for several more years before you're in WAY over your head.

So......welcome. Glad you found us.

On the collection you've already paid....hmmm........just an FYI, you need to be careful giving ANY CA your bank or credit card info. You just never know. I have heard nightmare stories of CA's pulling out more than the agreed amount. I just don't trust them.
Honestly........I would put a stop payment on that if I could.......and then turn around and request validation from the CA first.

Now that you have your reports.......be sure to opt out if you haven't already and then dispute/delete personal info first. Then you can move on to disputing any TLs.

For CAs, you can do the 1 2 punch (just remember no more than 3 or 4 accts in one dispute at a time). And be sure that ANY correspondence sent to a CA be sent CMRR. You have to have good papertrails when dealing with them.

For any OCs reporting, you want to just dispute first (look for any inaccuracies and dispute as such).

As for the judgment........were you properly served? You need to check your state laws under rules of service and see. Let me know if you have trouble finding the laws......I can point you in the right direction if you need.

The other thing that I'm sure is hurting you is your history. You haven't had credit for very long since you are so young.....plus if you don't have ANY positive then that will affect your score tremendously.
Look at this thread at some of the easier ways to get credit........you need to try and get some positive TLs going to balance your report.


Well, that's a start. Just be sure to stick around and read, read, read.......and of course feel free to ask questions.

Trish, Thanks so much for replying. Now, unfortunately, I have more questions.

Originally Posted by Trish

Now that you have your reports.......be sure to opt out if you haven't already and then dispute/delete personal info first. Then you can move on to disputing any TLs.

I have already did the opt-out. Now, on all of my credit reports they have the wrong addresses, etc. Is there a thread that would explain what you mean and a how-to on disputing/deleting personal info?

About the CA I already paid. Should I call the original creditor to verify they sold my account to this CA? I can't stop payment. =( Also, when I paid the CA I told them I would pay them by 3/8/09 (because I wanted to it over with) now I know this is a bad move. How can I fix this? Should I call them again and see if they'll work a "pay to delete" or write them?

Also, this is going to be a stupid question but.. I've already looked over my credit report and everything is legit... So would I still dispute? Except there are two reports for one account. One is in the "open-end" term section and one is in another section. The first is the OC. I'm so confused on why/what these mean! Is there I thread or a site that has "reading credit reports for dummys" article? ha, light humor.

And about the judgment.. I was properly served. I was stupid and took a default judgment. This was two years ago. Terrible, I know.

So, my first step is going to be to send out validation letters?

Sorry if this is a confusing post! I'm just learning to do this. Thanks sooo much Trish! And I am reviewing the link you gave me now!

Ally

[akane]

Also, I forgot to mention. Although I know all the accounts on my CR are accurate I have not received any notifications on some of them via mail because my address is inaccurate on my CR. I already called to delete and update. Now, would I take a different approach with my validation letter to the CA since I haven't even received notice of the debt? Or would it be the same kind of validation letter that is in the Validation letter thread? I'm sorry for all these questions. Thanks again.

[Trish]

Originally Posted by akane

Trish, Thanks so much for replying. Now, unfortunately, I have more questions.




I have already did the opt-out. Now, on all of my credit reports they have the wrong addresses, etc. Is there a thread that would explain what you mean and a how-to on disputing/deleting personal info?

There are several threads on this.....but kind of hard to find as they are mixed in with other questions. Basically you want to make sure and delete as much personal info as possible. No name or ss# variations. No other addresses except for current.....and maybe one previous. No employment history, phone numbers. NONE of that needs to be on your CRs. That just makes it easier for the CRAs to verify your information.

You can do this by mail or I actually prefer to call them for these things. It makes the investigation time go by a little quicker and then that way you can move on to your TL disputes. For addresses.....just say you never lived there.......they don't know.
And just an FYI.......EX will be the MOST difficult to removed addys. Any address tied to a TL (negative OR positive) will stay on your report according to them. :rolleyes: So.....just so you know......don't kill yourself over getting them deleted from EX (and if you call them, they will let you know whether or not you can delete the addresses you are disputing and what TL they are tied to).
You can also dispute as much as you want if it's all personal info. (for TLs - no more than 3 or 4 at a time)



About the CA I already paid. Should I call the original creditor to verify they sold my account to this CA? I can't stop payment. =( Also, when I paid the CA I told them I would pay them by 3/8/09 (because I wanted to it over with) now I know this is a bad move. How can I fix this? Should I call them again and see if they'll work a "pay to delete" or write them?

You could go ahead and contact the OC to make sure that you are paying the right CA.........but you should also send the CA a DV letter before paying anything else. Then IF you get proper validation, you can possibly try a PFD.
Oh.......and you should see if the CA (or any of the CAs on your CRs) is licensed/bonded in your state. Just to make sure they even have the right to be collecting.

Also, this is going to be a stupid question but.. I've already looked over my credit report and everything is legit... So would I still dispute? Except there are two reports for one account. One is in the "open-end" term section and one is in another section. The first is the OC. I'm so confused on why/what these mean! Is there I thread or a site that has "reading credit reports for dummys" article? ha, light humor.

LOL......I know. But if you are confused......how do you know for sure that it is reporting correctly? kwim?
If you would like, you can always post how the TL is reporting and we can look over it and see if there are any violations or inaccuracies.

And about the judgment.. I was properly served. I was stupid and took a default judgment. This was two years ago. Terrible, I know.

Well, you're not alone.......a lot of people do that because they just don't understand their options. I have learned (I have had judgments as well) that ANYTHING is better than a judgment. Even if it means contacting them and making payment arrangements to keep it out of court.
Has the judgment been paid? Do you know if they can garnish wages in your state? Just want you to be aware just in case.

You can read about disputing judgments here.........even if it is legit, dispute it.


So, my first step is going to be to send out validation letters? Yes, after you update your personal info

Sorry if this is a confusing post! I'm just learning to do this. Thanks sooo much Trish! And I am reviewing the link you gave me now!

Ally

No....not too confusing. lol You're fine. I know it's really confusing at first.
When I first started reading on what to do, I was overwhelmed. It seems like a lot to learn.......but it's really not that difficult once you let it sink in.