My credit problem is this.
I had 2 accounts. Capital One and Merrick Bank.
Around 24-25………. I could not pay them.
They sold it to different collection agencies…
Capital one is about $12 ad Merrick is about $13.
I called a collection agency and the outcome was they sent a letter that if I didn’t pay the amount in full they would put a judgment in my account, which they did.
So now I have a judgment and still have the debts.
I have no other accounts. Not even a bank account. I do have a $20, student loan is in good standing.
What do you suggest. I have the $25 to pay both.I need advice and options… I would like to have that judgment removed and those original accounts DELETED from my account. Those two items are killing my credit. Other than that. I have nothing else on my report. What do you advice?
I don’t want to send payment and be screwed further. Any advice would help.
Thank in advance,
Alex in NYC with bad credit… my fault, my problem, YOUR HELP IS APPRECIATED.
Thanks again.
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First of all they can NOT place a judgment on your credit report without first having gone to court to obtain one. You would have received a summons to appear first. If you did not show up, they could win by default then it would become “public record” and it would be entered on your credit report. Only then could they seek a wage garnishment providing you don’t live in North Carolina, Pennsylvania, South Carolina or Texas.
The fact that they stated this is illegal if they have no intention of following through with a court proceeding. This is often a common scare tactic.
Those accounts have now been either sold or transferred for a percentage to a third party collection agency. There are rules and regulation they must follow under the FDCPA. You can download a copy of the FDCPA at the link I have provided in the source area.
You should also check to see if these debts are time barred in your state (past the time limit to take you to court to collect), use this link to find your states SOL
http://www.bcsalliance.com/statute_of_limitations_…
If they are not time barred, then simply offer them a settlement, it will not improve your credit and it will show as a potentially negative factor, but can only be reported for 7 1/2 years from the date of last missed payment to the original creditor http://www.ftc.gov/os/statutes/031224fcra.pdf
Hope this helps answer your question
NOTE: This communication is not intended as or should be interpreted as legal advice. It is intended solely as a general discussion of legal principles or definitions of the FDCPA and FCRA. Always consult an attorney if needed.
Source(s): http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cr…
Simple. Start building your life.
Open up two savings accounts attached to your regular checking.
Label the first your Emergency Fund. Put $10 in here.
Treat this as such. This is for if you loose your job or need to fix your car to get to work. Serious stuff only.
Out of beer before payday is a pity, not an emergency.
Your credit has now officially turned around.
You have set your finances up to (barring serious long term emergency) keep making all of your ongoing payments ontime and in full (Student Loan).
This will allow you to rebuild. It’ll just take some time.
Label your second account Settlement Fund.
Is sounds like there will be $15 in there.
Call the creditor with the judgment. Offer them $8 as settlement in full for the debt.
If they accept, and back it up in writing, send them a money order.
If they don’t, tell them you’re limited in what you can do today, you’ll be in touch soon.
Now offer the other guy the same deal.
If neither accepts, call the first back and settle for the best they have to offer.
If you don’t have enough to settle both, continue adding to the account and attempting to settle.
As the balance grows and their patients shrinks, you’ll agree at some point.
Good luck.
And always get the deal in writting.
You definitely want to pay those items and make sure it is noted correctly on your credit report. One thing you want to watch out for is to make sure the item does not get updated by making the payment on it. You can check this by getting your credit report. The problem with the date getting updated is it makes the item look more current. The more current an item is, the worse it affects your credit score.
If it does get updated, contact the credit agency and explain what should be done.
The good news is keeping current on your student loan will improve your credit score. You likely should be able to get some additional credit in a couple of years.
Pay them off. The derogatory remarks cannot be removed. You defaulted on your payments and that is part of your credit history.
Plus is that they will show paid in full.