In need of help bad

[jayzmen]

I just recently checked my credit reports and found a negative account...a school tuition bill which I was paying as much as I could for, but obviously not enough each month so they wouldn't reported it on my credit which in turn hurt my scores really bad... In an instance like this should I do a pay in full letter or validate letter?

I'm trying to qualify for a mortgage and this has hurt my credit really bad.

[30daylate]

I would leave a student loan accounts to the professionals. Especially if you are looking for a quick solution. I would go with a reputable credit repair company.

[Lian]

There are options, but a debt validation letter is not one of them. You cant DV an OC.
If the debt is still within SOL, you always run the risk of legal action. Offering a pay-for-delete (PFD) is an option, but runs the risk of awakening potential legal action should they not accept. It is a calculated risk.

The safest bet is to just pay in full (PIF), but this option does not result in credit report removal.
As long as the debt remains delinquent, you run the risk of a charge-off or collection referral.

[30daylate]

You can debt validate an original creditor. Collection agencies aren't the only ones that make mistakes. Please don't ask me to look up the original source documentation on this one.

[Lian]

The authority for debt validation is FDCPA 809(b). It is a debt validation process that only applies to debt collectors.

[30daylate]

You can collect a debt without being a collection agency.

[Lian]

Yes, I agree that all debt collectors are not third party "collection agencies."
Under the definition of "debt collector" set forth in FDCPA 803(6), a creditor may collect on his own debts, but does not become a "debt collector" unless they are collecting under a name that is not the same as the OC. They cant imply that they are the OC and be considered a debt collector.
The distinction is not whether they are a "collection agency," but whether they are the named original creditor. If they are the named creditor, then they are not a debt collector, and FDCPA 809(b) does not apply.