How do I get things removed off my credit report?

Question

I ran into some issues with money for a year. I sold my house and had some outstanding debt for my cable/phone/electricity companies. I didnt have enought funds to pay these off before they went to collections. Now they are on my report for about 300-450 dollars. How do I get them removed? Pay them off? I hear that they dont come off but then others say they do. Does paying them off raise my fico score?

Answer 1

PLAYING THE CREDIT GAME
If you live in the U.S., whatever you do, DON'T PAY THESE BILLS OFF WITHOUT FIRST READING WHAT I WROTE BELOW!!!

HOW BILL COLLECTORS WORK
When you have bad debt that goes into collections (after being late/unpaid for 180 days), these debts are sold off to bill collectors (essentially, scum bags run by the mafia). The original bank or creditor is no longer collecting it. Instead, it gets auctioned off to scum bags who buy it for pennies on the dollar. What they do is they turn around and try to scam you for the full value of the original debt PLUS interest and penalties, which can almost double or triple the original balance.

To get these removed from your credit report or to pay it off, you have several options:

DON'T NEGOTIATE WITH TERRORISTS OR SCUM BAGS
Send a cease-and-decist letter to the bill collectors, which basically tells them to shove it. This is mentioned in section 805c of the "THE FAIR DEBT COLLECTION PRACTICES ACT".

Here's an excerpt:


----------------- except from FDCACT Section 805c -----------------

"(c) CEASING COMMUNICATION. If a consumer notifies a debt collector in writing that the consumer refuses to pay a debt or that the consumer wishes the debt collector to cease further communication with the consumer, the debt collector shall not communicate further with the consumer with respect to such debt, except --

(1) to advise the consumer that the debt collector's further efforts are being terminated;

(2) to notify the consumer that the debt collector or creditor may invoke specified remedies which are ordinarily invoked by such debt collector or creditor; or

(3) where applicable, to notify the consumer that the debt collector or creditor intends to invoke a specified remedy.

If such notice from the consumer is made by mail, notification shall be complete upon receipt."

----------------- except from FDCACT Section 805c -----------------


By law, the debt collect must return the debt as unpaid/uncollected to the original bank/creditor and destroy your records, or they can take legal procedings against you. They are allowed to contact you in writing ONE LAST TIME to inform you of their actions (ie. if they are suing you, if they're returning the debt to the collector, if they're going to run off and cry to their mommy, etc.). Unless you've got valueable assets, the most they'll do is probably terminate the collection.

If you don't know how to write a cease-and-decist letter, there's plenty of websites that will provide templates for cease-and-decist letters.

NOTE: This does NOT apply to the original creditor, only debt collectors. Legally, you will still owe the original creditor!

REMOVING THE NEGATIVE ENTRIES
After a little over 1 month of sending the cease-and-decist letter, contact each credit bureau where you have these negative entries and request to have these debts verified/validated. The credit bureau will then contact the collector and the collector will be unable to locate your records (per having destroyed your records after the cease-and-decist letter), and the credit bureau will be forced to remove that negative entry.

Once the entry has been removed, contact the original bank/creditor IN WRITING and arrange to make FULL payments in return for a "paid as agreed" entry on your credit report, OR simply removing the account from your credit report altogether. Make sure you get this agreement from them in writing before sending even a dime to them!

THAT'S TOO MUCH WORK, I JUST WANT TO PAY IT OFF
If you don't want to deal with all the steps above, simply contact the creditor/collector IN WRITING and get them to agree to mark the entry as "paid as agreed" or remove the negative entry from your report in return for full or settled payment. Make sure you get this in writing!

I'M A LITTLE BASTARD SHORT AND STOUT...
If you're a little bastard and simple don't want to pay, just wait until the statutes of limitation pass and then you're scott free and they can no longer collect a dime from you. Of course, there's your guilty conscience and the ghost of Christmas past that will haunt you for life!

Also, if you choose to be a bastard and you own any valuable property or have any large amounts of cash stashed in a financial account (such as a house, an expensive car or boat, stock brokers, IRAs, savings, checkings, EXCEPT for 401k's and perhaps 403b's which are protected from creditors), there is a chance the creditor or debt collector could sue you. This really depends on your state.

As for your credit, it takes 7 years from the date the account went into collections to fall off your credit report. Don't make any payments or disputes or requests to verify/validate a debt unless you intend to pay it off! You could easily screw yourself over!!! If you make a partial payment or unsuccessfully dispute or verify/validate a debt, it'll reset the 7 year clock.

For a list of statutes of limitation for debt, check out this website:

http://www.bankrate.com/brm/news/cc/20040116b2.asp

ONE LAST TIP
As an additional tip, by law, debt collectors cannot threaten or harass you. This includes neighbors, friends, family, and empty threats of lawsuits or arrests. If they do, they're violating your fair credit reporting act rights and you can sue the MOFO's for violation of your rights!

To learn more about your rights under the "THE FAIR DEBT COLLECTION PRACTICES ACT", you can either read the FDC's tip page below:

http://www.ftc.gov/bcp/conline/pubs/credit/fdc.htm

Or check out the Wikipedia entry here:

http://en.wikipedia.org/wiki/Fair_Debt_Collection_Practices_Act

If a bastard debt collector is harassing you or violating any of your rights, file a complaint! Be sure to keep document every phone conversation, snail mail, or harassment you experience.

https://rn.ftc.gov/pls/dod/wsolcq$.startup?Z_ORG_CODE=PU01

CAN ANYONE TESTIFY TO THIS?
In my own personal experience, I owed over $30k in debt that I couldn't pay off due to being laid off during the dot-com bust. The collectors want over $60k after penalties and interest. I laugh in their face. I haven't paid a dime and I sleep very well at night. I only have 2 more years to go before I have a perfectly clean credit, and 1 more year to go before I'm off scott free. I guess I took the bastardly approach! But whatever. I don't see the difference between being a bastard and filing for bankruptcy; they're both bastardly!!! Just that a bankruptcy will screw you over longer (10 years instead of 7). Doesn't take a genius to figure out which option is easier.

Just an FYI, even with my bad debt, I just bought a new car for 14.9% APR through CitiFinancial. Not bad!

Answer 2

Your assumption is like most people's in that once you pay a derogatory item it will be removed from your credit part. In fact the only thing that will change on your report is that the debt will be shown to have a zero balance and the date it was paid. What will remain for seven years is the history of the date, how much it was for, whether it was a collection or lien, when the account was opened and when it was paid off. Of course a paid bad debt is better than an open one but the pay off does not remove the delinquencies.

Answer 3

You need to pay your debt off and then go from there! you can get ahold of the co. or co's. that put out your report and try and explain but that won't help in most cases.This is the type of thing that will stay on a report for years! the sooner you pay the better because even after you pay it will effect your rating!...Good luck!

Answer 4

Once something makes it to your credit report it is there for 10 years! Unless it is there by mistake you just can't get it removed. Even if it's a mistake on your report it it VERY difficult to get even that removed.

Even if you pay off the debt (which you should) it is still on your report and will stay there for 10 long years.

:-)~

Answer 5

Call the collection agency that has your debt. Agree to pay it in full if they will agree (IN WRITING) to take it off your credit report. Make sure you have it in writing before you pay. Otherwise is shows as "paid collection" on your report for seven years.

Answer 6

Pay them off. Also, talk to the companies that put things on your report, they are the only ones who can remove them. This can be a difficult and lengthy process. Good luck!

Answer 7

Paying them off might but I dont think they come off. The only way they come off is time. YEARS!!!!!!! More like 7 YEARS.

Answer 8

It comes off if you pay what owe or get a credit repair.

Answer 9

you cant. the only way to do so i think is to claim bankrupcy but then you cant take out any applications for 7 yrs. well thats in AUS anyway....