Credit Repair: Pay to Delete How You Can Improve Your Credit Score Here ph
Credit repair is not an overnight process so do not get too discouraged when you pull your credit report and see collection agencies listed. Even if the amounts owed are large there are things you can do to not only correct this, but also to have this deleted from your credit reports. You can pay them to delete this from your credit reports. This is known as a pay for delete. Many collection agencies will tell you that they can not do this and that it is illegal. Do not accept this answer from a collection agency, as it is untrue. You can find all the legal guidelines about consumer rights and what collection agencies have the power to do in the FCRA (fair credit reporting act) and the FDCPA (fair debt collection practices act.) Know upfront that you need to be informed when you are dealing with a collection agency because they will do anything and say anything in their power to get as much as they can out of you, after all, that’s what they are in business to do. The FCRA states that a collection agency can report an account up to seven years, however, it never states that they have to report the account. When you take this into consideration it is not illegal for them to delete this account from your credit report. Before settling any outstanding debts you may have with collections agencies or before sending a pay for delete you need to know how old these accounts are and if the collection agency owns the debt or is just trying to collect on it. This will play a major role in your pay for delete method you use. Each state has a statue of limitations (SOL) for collecting s debt. It varies from state to state and can be different for different account types. The SOL simply means that after a certain amount of time has gone by they can continue to try to collect on a debt by they can no longer sue you for the debt. You may want to know this information if you have big debts on your report. Bad debts or charge off accounts are often times sold from the original creditor to a collection agency. If this is your case and the collection agency owns the debt then you may be in luck for a much lower price. Collection agency or debt collectors often buy bad debts for anywhere from one cent to ten cents per dollar. They paid no where near what you owe for the debt, this is how they make their money. Knowing this will help you establish a starting point for the amount you want to offer them to settle and delete this debt. It is recommended about ten percent of the total debt. If they do not accept this offer then you may choose to go a little higher to fifteen percent if you have the available funds. Do not feel bad about offering a low settlement of ten percent. If the likelihood of this debt being repaid in full was high, it would have never gotten to collections and charged off in the first place. Many collectors believe that they will never collect on these accounts and are happy taking something over nothing. Once you have your amount you are willing to pay in mind you are ready to start your pay for delete.
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