I have a bad mark on my credit report from the phone company from 2004. I did not realize this until I tried for a new bank account and I was denied. I moved out of my place in June 2004 and I cancelled my phone service. Now I find out that I owe $300 so I complained to SBC and they say that they don't even have any record of me cancelling the service. They wouldn't give in so now I am stuck.
I want to buy a house so I am thinking of just taking the loss and paying them the $300 that they erroneously say I owe. By paying this back, will that mark disappear making my credit score better? If by paying SBC back does not erase that bad mark, then I would rather not pay it.
Does anyone have an idea?
2007-09-19 11:51:18 · 4 answers · asked by Anonymous in Business & Finance ➔ Credit
The only evidence I can offer is my signing off the lease.
2007-09-19 12:08:53 · update #1
I never got any collection agency notices, probably because I moved out and my address changed.
2007-09-19 12:24:01 · update #2
Dom you need to pay off the debt, document your payment and make sure it is cleared from your report. It could take awhile for this to happen.
2007-09-19 12:13:42 · answer #1 · answered by Anonymous · 0⤊ 1⤋
Paying the $300 (even if it's erroneous) will not remove the debt from your credit report. It's probably already been listed at the credit bureaus and it's probably been 30 days since this (though I would check with the CBs to see when it was officially listed). Have you received any collections notices? Sometimes they're hard to miss because of regulations concerning what an agency can put on an envelope and things like that, so you might have just thought it was junk mail and threw it out. If so, you still have a few options. Find out where the account is listed and call the agency--see if they will resend the validation notice. If they won't resend it or SBC is not being helpful in letting you know the status of your account, you can still dispute the debt with the credit bureaus, even after the 30 days. They will, by law, launch an investigation into the matter.
If it is found that the debt was placed in error, it is supposed to be removed from your credit report, usually by the end of the month. If it's close to the end of the month when the investigation closes, you may have to wait until the end of the next month. If SBC feels bad (which, in my experience, they do not), they may send a request to get it updated sooner, but I wouldn't hold my breath.
If, after the investigation, it is found that you are going to be held responsible for the debt, I would speak to the credit bureau representative about the next steps you can take. If it looks like you're going to have to pay it, I would do so quickly...however: It will take 7 years for the debt to be removed from your credit report. You might want to talk to different lenders and see what their requirements are for obtaining a loan. Many times lenders will send out a request to a collection agency to verify that the debt in question was paid and if so, it may help your loan application.
Hope this helps and good luck!
2007-09-19 12:13:25 · answer #2 · answered by ophelia_tm1 2 · 0⤊ 1⤋
See if you can get them to agree in writing to remove the negative if you pay them in full. They may go for it.
But if they don't, a paid negative is better than an upaid one. A mortgage company will insist you pay it off before the loan goes thru.
If you do not have some written proof that you cancelled that phone service and do not owe that money, you don't have a leg to stand on. That negative will stay on your report for 7 years from the default date.
2007-09-19 12:06:25 · answer #3 · answered by bdancer222 7 · 0⤊ 0⤋
A derogatory trade line marked paid is still a derogatory trade line.
Before you pay anything, however, get a "delete for payment" agreement with SBC. And, make sure you get it in writing first.
2007-09-19 12:12:24 · answer #4 · answered by Ti 7 · 0⤊ 0⤋