Credit repair... a real hassle

Scuba Steve · 03-21-2008, 10:54 AM

I've been helping my fiance out with an item in collection on her credit report for the last month or so. It came as a total surprise, seems to be from a hospital where she lived about a year and a half ago mispelling her name resulting in a bill not being forwarded after she moved. It's only $56, but the procedure you have to go through... between opting out, getting old addresses removed and finally disputing the item is an incredible pain. That's where we are right now, sending the dispute / validation letters sent this afternoon through certified mail. We hope to be finished with the process within the next month or so.

Has anyone else had to go through this ordeal before?

Joeaksa · 03-21-2008, 11:22 AM

Yep, and get used to people who do not care while wading through this.

Scuba Steve · 03-21-2008, 11:29 AM

She has already dealt with one person like that while calling Experian's help line. Their website was responding slowly so the person in the overseas call center hung up on her.

Don't know where we'd be in this process without the creditboards.com forum.

Steve Carlton · 03-21-2008, 11:38 AM

From what I'm reading, it sounds like you're taking the wrong approach. If the collection is valid, disputing it is only going to result in it being verified and it'll still be on her credit. I don't know what the opting out and getting old addresses removed is about.

If the bill is valid, call the collection agency. Offer to pay the bill in full in exchange for a deletion letter, not them saying they'll report it as paid in full. I'd say about 50% of the time a collection agency will take that deal. You give a copy of the deletion letter to any of the three bureaus (Experian, Equifax, and TransUnion) that are reporting the collection and it will come off as if it never happened.

If the collection agency won't do this, you could call the hospital that generated the original bill. If the name given was wrong, they might be able to rescind the collection. Then you can get the collection removed either with a letter from the collection agency (perhaps the hospital could request this) or by disputing it. They can't verify a collection that has been canceled.

Or you can hire a pro that will have a higher probability of getting it off her credit. You'll actually muddy the waters and make it more difficult for the pro if you negotiate with the collection agency and fail. The people I would recommend charge $275 + $50 processing fee. If they don't get it removed, they refund the $275. You can PM me for the contact info.

Porsche-O-Phile · Porsche-O-Phile's Garage

Mother of mercy, that site is about the best/most informative I've ever seen for this kind of information. I've learned a TON just on the general information forums.

This is required reading for anyone who gives a damn about how "the system" works and how it can potentially screw you. Very good stuff - thanks for sharing!

mkaraoglan · 03-21-2008, 04:27 PM

i've had to battle so much of this stuff over the past year.
My favorite is the ghost accounts.
I got hit with a non-existent old verizon "bill" from a scammy colection agency . Of course the collection agency kept verifying it as "valid" to the credit bureaus which is funny because conveniently, verizon didn't have records that far back.
of course the credit bureaus could never tell me how the collection agency was able to verify the bill. The best part is that i CURRENTLY have Verizon. i'm letting it drop off my credit.

one rule: never, ever do anything on any item that's close to the 7 year mark. if you start to pay it off, sttle it or anything else it does absolutely nothing.

LeeH · 03-21-2008, 04:55 PM

I recently met (and am considering working with) a guy who does credit restoration. They have a patented process that is even able to remove valid negative items from credit reports. It's based on a loophole in the Fair Credit Reporting Act.

It takes some time, but based on the evidence he's presented is really seems to work. I've seen many letters from the credit reporting companies listing negative items that have been removed. $600 is a lot of money, but if you get a lower interest rate on the mortgage, car loans, and credit cards it wouldn't take long to recoup that.

http://www.TheFulfillmentCenter.us

pwd72s · 03-21-2008, 05:39 PM

Another key to financial happiness? Place yourself in a position of not giving a rip what your "credit score" is. Why not care about a "credit score"? When you are able to simply pay cash. Cindy & I have a couple of credit cards. Home is paid for. Credit card balance is paid in full every month.

In the mind of credit companies? We're "deadbeats". Meaning? Happier having other folks pay interest to us...screw paying interst to anybody..l

pwd72s · 03-21-2008, 05:52 PM

Quote:

Originally Posted by LeeH

I recently met (and am considering working with) a guy who does credit restoration. They have a patented process that is even able to remove valid negative items from credit reports. It's based on a loophole in the Fair Credit Reporting Act.

It takes some time, but based on the evidence he's presented is really seems to work. I've seen many letters from the credit reporting companies listing negative items that have been removed. $600 is a lot of money, but if you get a lower interest rate on the mortgage, car loans, and credit cards it wouldn't take long to recoup that.

http://www.TheFulfillmentCenter.us

But, Lee? I don't want to borrow money for anything...from anyone. I may, however, be intrested in lending...if the deal seems sound enough. Few deals are. BTW..$600K ain't all that much money..."Credit restoration" Gimme a break...this sounds like hype to me..

Vipergrün · 03-21-2008, 07:04 PM

The whole credit score thing is a total scam. We recently went through the mortgage "qualification" process. I had hits to my FICO score due to "too many accounts". They are not all active, in fact, I forgot about some of them. The kicker? My wife got hits due to "too FEW accounts". What the he11? Everything from obtaining a mortgage to getting home owners insurance seems to require a credit check. God forbid you are ever late on a payment, the interest rate on most every balance you carry can immediately go to the "default" interest rate even if you were never late for that specific creditor. I think that's a sham too. Mistakes happen, not that anyone cares....

LeeH · 03-21-2008, 07:26 PM

Quote:

Originally Posted by pwd72s

But, Lee? I don't want to borrow money for anything...from anyone. I may, however, be intrested in lending...if the deal seems sound enough. Few deals are. BTW..$600K ain't all that much money..."Credit restoration" Gimme a break...this sounds like hype to me..

Paul - You're singing to the proverbial choir. We're fortunate enough to not have any debt either. Thing is, most people DO have a mortgage, car loans, and credit card debt. As Brad stated, a couple of minor hits and the interest rates go through the roof - >20%. With credit requirements tightening more people can benefit from some help.

Porsche-O-Phile · Porsche-O-Phile's Garage

You guys must either live on another reality or be made out of money.

For the rest of us, credit is absolutely a necessity in order to get ahead in this world. A bad FICO score to me is even worse than being diagnosed with cancer. Heck, if my FICO score is good enough, I can afford the cancer treatments, right?

bt1211 · 07:24 AM

LeeH I'm sure there are no patents that take advantage of any "loopholes" in the FCRA. I'm sure there are no loopholes that benefit the consumer and if there were, they would have been closed by now.

All patents have a patent number or are stated as "patents pending".

reading the website you posted only states that their process is tradmarked( software).

Steve Carlton · 03-22-2008, 07:34 AM

The Fair-Issac (FICO) score was originally developed as a predictor of bankruptcy and became a huge factor in granting credit. It almost always lists the top four factors why the score isn't higher. If the score is high, or the factor isn't the first one listed, it's impact can be minimal.

Most credit repair is based on disputing derogatory information over and over. That might be the "loophole" this outfit is claiming, as you're not normally supposed to be able to do that. The problem with that type of credit repair is the items can come back later. The item only comes off if the creditor doesn't respond to a verification letter in 21 business days (I think). Getting a deletion letter from the creditor (and keeping it) is the only way to insure permanent removal. Sometimes disputing over and over is the only way an item can come off, and the creditor will give up as it costs them money to report information and respond to disputes.

LeeH · 03-22-2008, 08:26 AM

bt1211 - There is such a thing as a process patent, which I thought they had on this, but I may be mistaken. I'll check into it.

Steve - The loophole concerns the Fair Credit Reporting Act. There are certain reporting requirements that are not being met. If they're not met then the negative item must be removed.