Collections

I have about 5 thousand dollars in unpaid medical bills i’ve dodged paying for about a year. I’ve never applied for a credit card or had any type of credit. When I went to check my credit history about my unpaid bills that are now in collections ive been shown my credit score is 567. So what im asking is do unpaid medical bills affect your credit score that much and its really that bad? or is that the score thats expected for someone whos never had or used a credit card?

You can use this credit monitoring service to pre-estimate future scores for different scenarios of such payments - credit-report-free.totalh.com

I contacted a the law office handling my collection reported on my credit report to try to settle because I need to satisfy my debts before buying a house. I noticed on my credit report that the collection agency pulled my credit the day I contacted them. Is this legal for them to view my credit report? If not, what legal actions can I take against them?

Yes it is, any time someone is trying to collect on a debt they have the right to pull your credit.

Most likely they are looking for you current address or employer so they can contact you.

My wife has some pretty massive student loans and there’s no way she can pay the monthly amount the government is asking for. She’s already used up the allowed interest relief. What my wife wants to do at this point is to let collections take over the student loans. She seems to think that collections will take what ever she can afford in terms of monthly payments. Is this correct? (I’m also aware she won’t get any income tax and she’ll have no credit what so ever). Also, can they take her to court over this and face jail time?

I work in collections for student loans and no they wont take anything. Going into collections isn’t a do over, the past due balance is still there,and she only pays the monthly installments then the past due balance will still be there and will eventually default. People get this stupid idea that when they go into collections they get to pay whatever they want and the loan wont default. when it goes to collections people have to pay more because now their collecting the monthly installment and the past due balance,not to mention you have late fees tacked on. Basically, if her payments are say $200 per month and she is already past due $800,then the collector is going to want $1000, if she only pays say $100 then when the next monthly installment rolls around shes gonna owe $1100, and so on,so you can see how people get into trouble with this

I haven’t paid any of my credit cards that went into collections. Will this stay on my credit report forever or be removed after a certain amount of years?

Per the Fair Credit Reporting Act (Federal law) derogatory accounts show on your credit reports for 7-years from the date of first delinquency which works out to 7-years and 180-days after that time they drop off weather paid or not.

The thing you have to worry about is being sued either by the original creditor or by collection companies they sell your accounts to after a few months. Will they? who know it depends on the amounts you owe weather it’s worth it to them.

But if they do and win they can attach your bank accounts, garnish your wages (if your State allows it) and file liens on any real property you may own like cars, boats, land and homes.

All of this will show on your credit for the next 7-years making it very hard to get approved for any other types of loans without making massive down payments, paying huge fees and State maximum interest rates.

I want to open a new checking account, but my credit is very bad. I need to open a new checking account in order to deposit checks that I have. I can not use my main checking account because all of my money was taken out do to an overdraft fees from 2005. I still owe over $400, so this checking account is useless to me and I need a new one.

Сredit repair workеd fine to fix my credit. They disputed and removed lots of bad items from my credit report. I used this service - credit-report-score.10001mb.com

I sacrifised alot and have finally payed off all of my debt and collection accounts and I got the letter showing a 0 balance what do I do with the letter? How do I get these accounts off my credit and raise my FICO score?

You must send the letter reflecting the ‘zero’ balance to all three credit bureaus and request that they update your credit report to reflect this fact.

Make sure you send copies and keep these letters in a file. Some will say to keep the documents for 3 or 5 years. My advice is to make them a permanent part of your file. Meaning keep them forever. If one of your creditors ’sells’ your information to an outside agency, you will be prepared to send a copy to prove in writing that your account has been paid.

I was a little over 90 days past due on a credit card payment, did it go into collections? How do you know if it did?

You will start to receive communications from the collection agency. Simply call the credit card company and find out.

Most creditors have an in house collections department that tries to recover the debt of the past due balance before it is sent to a third party collection agency. I have a payday loan and the status says collections, but the debt has not been handed over to a third party collection agency, so can I send them a debt validation letter to verify debt or does it only apply to third party collection agency?

The original creditor would probably have copies of all your paperwork and account details, so to send a letter disputing it would be pointless unless it really isn’t your account.

I cosigned for step daughter, she didn’t finish contract, I was paying $100 month to the mobil phone carrier. they have sold to a debt collection company. they want payment info over phone. I told them no just send me a bill and I’ll pay. They say no. It’s verizon. Do i have to pay?

they can’t legally make you pay over the phone. they have to at least give you the opportunity to see the bill in writing. how are you to know for certain who you are paying? and what would you have to defend yourself with if it turns out to be bogus? tell that to them. if they don’t accept that, you may consider speaking to a lawyer about it.