Yet Another Credit Question....?

Question

I jacked up my credit at a young age with the ever-popular car loan. The vehicle was repossesed and sold at auction and I was sued by a local collection agency to collect the difference. The amount at that time was $6200~ it is now $7585.10. I just made arrangements yesterday to repay this amount with the collection agency because the bank that I got the loan from said I had to deal with the collection agency. My credit report shows an entry from the bank with a charge-off, then an entry from the collection agency for the amount. The lady at the agency said that once I pay the amount in full I will get a letter from the court advising of satisfactory payment and both records on my credit report will change to paid in full. Is this correct? and how will this affect my credit score? I have 2 other collection items still on my report marked as paid (I paid them last year) from medical bills. I've tried disputing them to try & get them completely removed since they're paid but they remain.

Part 2: (Ran out of characters) The medical bill entrys were small amounts and like I said, we're paid last year. Should I keep pushing to get those removed since they were paid? or am I stuck with the paid entries for 6 more years? Thanks for all your help.

In response to Ms. Rosa, I think you misread my post. I said I paid the medical bills last year. The car loan is actually a little over 3 years old and like I said, threating to take me to court isn't an issue because they already have done that and they have a judgement in their favor. I did find out about the ability to make a settlement, but I'm just going to pay it in full. It certainly sucks bawls knowing that I could probably have saved $3000. But I think I'll feel better about it in the end. Then the b*stards can't ever say I owe them ANYTHING because I paid every last copper-plated cent!

I live in Arizona. So, I understand that the entries will be on there for years and years, but should they willingly change both entries to PAID or is it going to be a 'rumble in the bronx'? I agreed to make my first payment of $750 next Friday, so, any help is appreciated.

Answer 1

I liked what the first lady said in her answer. Take Caution when dealing with collection agency's.
By the way what state do you live in? yep makes a difference.

Also please don't believe a word the collector said about your credit report. That repo will not be off there for years it will just show as paid. You will have to get a signed letter from the collector and the original company before you pay the money stating they Will not validate the repo if you dispute it on your credit report. You then may have to fight with all three credit bureaus to get that promise upheld.
I deal with 100 or so different people every week and see at least that many credit reports and one thing I can tell you is I have never seen an original creditor take off a repo with out a huge ordeal and fight.

The collectors will tell you anything they can to get the money from you. That is their job and they typically make a commission off of thier collection.

As for the medical debt. Typically lenders let you have a certain % on your credit report and take the situation you were in under consideration.

Kourtnie Donihoo
Prosperity Financial

p.s.
I just read the part about the judgement.. Forget it that will not come off that report for a while and it will be way more then 6 months before your credit score goes up enough to be considered " good " credit. We are talking years. Even if it is paid. Have they garnished you yet? can they? what state do you live in? If you live in a non garnishment state sometimes you can negotiate a better deal then what you have . Yes judgements can be negotiated. Happens all the time.

10/13/07 @ 9.14p.m
Judgements can be negotiated. That is a fact. They have to be at least 6 months old before considered. ... That is if they have not garnished yet. The handling of that process is not done by the normal everyday person unless they have done thier research and are under certain circumstances I know that for us our attorneys handle it. It is done none the less.

Answer 2

I used to be a bill collector on auto repossessions. Yes after you are paid off on the car loan your credit will go up after about 6 months. But this letter she is saying you will get from the is not true. The collection agency at this point owns your debt, they brought it off the orginal creditor (that is why the orginal creditor tells you to talk to the collection agency) so the collection agency is the one that will be mailing you a letter that says it has been paid. What upsets me is that the person you are dealing with seems like she maybe be threating to take you to court and that is against the law. A collector cannot threaten you with court unless they really are going to do it they are not allowed to use the words"legal" "action" or "persue" . And since you say that this debt is only a year old I know for a fact the debt is just too early to go into a judgment, garnishment, or anything legal. That usually takes about 5-7 years. You can sue this women if you get her on tape saying these things to you over the phone. About the medical bills you cannot dispute them if you paid for them because if you paid them then you agreed they were yours by doing so. So you really can't do anything about those but medical bills are not a big deal. It's the loans and the credit cards that kill your credit score. Also did you know that you can actually settle for car loan debt for up to 40% less. The collector won't tell you this because she makes commission off your payments so the more you pay the more she gets out the deal. So the math on the settlement is 7585.10 - 40%(3034.04)= 4551.06 and you can split that up to 3 payments 1517.02 and payments must be made every 30 days or settlement will not be valid. I got out collection because of the lies and the way they wanted me to break laws to get payments. and if you question rep about her lying she will deny it and either hang up on you because she does not want to get sued or put you on hold and tell the person next to her to jump on the phone and act like her manager. Please understand that the collectors are able to dio this because there bosses allow. That is the collection business they are all jerks. My suggestion is to tell them you want the settlement and if they don't give you the numbers you want hang up on them and I gaurentee by the end of the month they will call you and tell you that they can give it too you all of a sudden. I know it is a lot of info but if you want the legal version of this click the link I included and everything I am telling you will be in the website somewhere. I hope this works for you don't let them harass you and lie to you. Contact me if you want more info. One more thing if you take the settlement then get a letter from them before you send them money very important!!!!

Answer 3

OK, looks like I get to correct a bunch of bad answers again.

bdancer! Read the law! I'm tired of correcting you. It's 7 years, not 7 1/2 years. And Judgments only stay on for 7 years....bankruptcies are 10.

OK, next.....STOP listening to collection agents! They are lying to you. Let me count the ways!!!

1) They can only list a debt on your reports once. The only person who can legally report this debt is the one with the right to collect it. Unless the collection agent purchased this debt, they can NOT list it again! Send the credit bureau a dispute letter regarding duplicate listings.

2) Once the debt is paid, all the creditor is required to do is show "paid" on your report, but all information about late payments, repo's, charge off's, and all that other nasty info will remain on your report. Your paying off the debt will have very little effect on your score.

3) The report of the judgment will not be deleted...it's public record and easily verified by the CRA. They will show it paid off (assuming the creditor files the proper "satisfaction of judgment" forms with the court.

Your problem is since they have a judgment you have few options. If you fail to pay they may garnish your wages or pursue other collection avenues. The creditor knows this....but they still have to collect. If telling you a lie that they will fix your credit if you pay up will do the trick...they will say that!

Basically, once a judgment has been issued your credit is shot. The creditor now holds all the cards and you have nothing to negotiate with. Sorry.

Answer 4

Negatives stay on your credit report 7-1/2 years from the date of delinquency. Judgments stay for 10 years. Payment does not restart the reporting clock. Nor does payment remove them.

The older these items get the less impact they will have on your score. Of course, paid items look much better than open ones.

Answer 5

nicely, BBC, CBC, Pravda or perhaps el Jezeera have not picked up on it and there is not any information launch on the score organizations information superhighway website so i'd not trust what both of those 2 "information" substances declare.