what items are cretitors legally supposed to remove of your report?

Question

for example if debt was purchase by another lendor. or if debt was in collection, but now is paid of, should that be taken of as bad debt from a collection agency. please add any other tips or trick on credit repair.

Answer 1

The quick answer is they must remove any incorrect information from you credit history. If you carefully examine each item of your history, you can find many errors. But you need to show some proof they are incorrect.

Examples:

Incorrect balance. This is supposed to be the balance at the time of the report, ie the delinquency balance. Note that this amount will continue to increase from interest and late penalties.

Report Date: This is supposed to be the day you became delinquent on the account. Many collection agents intentionally "re-age" the debt to keep it on your report longer. This is illegal. So find the last bill you paid, and compare it.

See the link below. It goes into how to dispute items, and gives sample letters you can use.

Answer 2

There are so many different things that can be reported inaccurately it would be very difficult to list them here.

I'll just go with your question.

If you have both the original creditor and a collection agency listed for the same debt on your reports, only one can list a $ amount. Which would be the current debt holder, the collection agency.

As for the collection agency, there are quite a few things that they cannot list either - a few examples are - they cannot list themselves as a factoring company, they cannot list the account with a 'past due' balance, open installment account with a 1 month term etc., etc.

If a creditor sells the debt to a collection agency, the original creditor must report the account at a 0 balance. (Once that is done, that account would probably be moved over to the positive part of your reports.)

I would suggest reading the FCRA for a full list of what constitutes violations with an original creditor and a collection agencys tradelines.

If a person pays the collection agency (or the original creditor) the account can only be listed on the persons reports for the original reporting period. The account cannot be re-aged and run longer, or reported after, the original reporting SOL.

If a person pays either the collector or the original creditor, they should request "before" paying that the account will be deleted after payment.
Once the account is paid, the leverage to have the account deleted is gone. One can still request that it be deleted, but it probably won't happen.

Also, if a person is paying a charge off account, especially if it is in the hands of a collection agency, before payment it should be requested that they will accept a percentage of the debt as payment in full. It should be requested that the debt or the remaining portion of the debt will not be sold. It should be requested that the collection agency will not continue to collect on the debt or the remaining portion.

If a person has nothing in writing, even if they pay the "full" amount, they may find a few months or a year down the road that the collection agency has sold the debt to another agency. Then they start getting dunning notices on a debt they have already paid.

I would suggest going to the site I've listed. Do some reading in the newbie forum and then in the credit forum.

Answer 3

As long as the information is correct there is not much you can do.

If it's correct you can try requesting verification of the item you want removed. There are time lines and specific wording you have to follow (that I can't remember). If it's not verified with in said time line and you request it, they have to remove it. If you are going to do this it really only works for big institutions (with lazy file clerks) and around the winter holiday months (not so lazy file clerks taking time off for the holidays).

Get a book on the topic and they usually line it all out and even provide generic letters that you just add your name and account info to.

Word of caution if you have a delinquent account and no action has been taken, then don't rock the boat. Most consumer debts are only good for (i think) 7year after the last action. So if you stir the pot, it starts all over.

Answer 4

If a debt is in collections and paid off, it is kept on record for some amount of time anyway. It will be marked "paid" when the bank looks at your credit report, but they will know about it.

Some people have told me that outstanding debts will stay on your credit report for six months after they are paid off. Others have told me it's longer than that.