Reader’s Question
Dear Ashley,
I went to the hospital several years, and left with a a large bill that I was unable to pay in full. I set up a payment plan with the hospital to pay the account over time. I’ve paid the agreed $25 payment ever month since that time.
I recently received a letter from a collection agency stating that my payment of $25 was due. I contacted the agency and they told me my bill was sold to the hospital over a year ago. This was the first letter I received, and I have made payment through the hospital’s online bill pay the entire time. I have never missed a payment since setting up the payment plan.
What I don’t understand is how the hospital can sell my bill without my knowledge when I did not break our payment agreement? Also, how is the hospital still able to take payments if they no longer own the bill?
I have no idea how to proceed in this matter. I’m a student and need good credit to get loans for graduate school. Any advice you can give me about how to proceed would be greatly appreciate.
Thanks,
[name removed]
Response
Dear [name removed] -
When you made the arrangements with the hospital did you receive the agreement in writing? If so, you need to contact the hospital’s billing department ASAP and tell them that you have an arrangement to pay $25 per month towards this bill. If you don’t have anything in writing, I’m afraid there is very little you can do except for paying this bill as quickly as possible. Offer to pay the collection agency IN FULL if they state in writing that it will not be put on your credit report. If it’s already on your credit report, offer to pay in full if they remove it. Nonetheless, I would attempt by any means possible to deal directly with the hospital and not the collection agency –as collection agencies are scum.
Best,
Ashley
Reader’s Question
I have read on a couple of websites that asking a collection agency to delete an account once your willing to pay it in full does not mean that it will happen. How do you work around that once you’ve paid it off and they do not remove it. Is it also true that paying on an account that is old refreshes the date it is reported as bad?
Response
Hi [name removed] -
Good questions. While it’s true that collection agencies are under no legal obligation to remove the account once you’ve paid it, generally the collection agencies are only concerned with one thing: getting paid. They do not care about your credit score. In most cases, if you state in writing that you will pay the account in full if they agree (in writing) to remove the collection entry from your credit report, they will comply.
The key is to get everything in writing. Collection agencies do not want to go to court anymore than you do (regardless of what they say). Therefore, if a written agreement is established (i.e., pay in full for removal), its very unlikely they will fail to remove the entry. If you don’t have everything in writing, all bets are off and they won’t take the time to remove the entry.
Regarding your last question: Although rare, resuming payment on an old account can refresh the date. However, this is no reason to put off paying on an old account –if the date is reset, in most cases it’s very easy to get this removed by simply disputing it as inaccurate.
Hope this helps,
Ashley
Reader’s Question
I have 7 collection accounts on my credit report, and I am willing to pay them off. But I really want them removed. what is the first step in doing this?
Response
You’re in a good position if you’re willing to pay them off. Write a letter to each of the collection agencies stating that you are willing to pay in full if they can provide in writing that they will remove the entries from your credit report. This usually works great.
-Ashley
Reader’s Question
I am trying to pre-qualify for a home mortgage loan. I filed a chapter 7 bankruptcy back in 2001. The underwriter wants a letter to explain the bankruptcy, what is the best way to write it? Some say to write hardship due to job loss, but will this help or hurt my circumstance? What exactly are they looking for?
Response
Hi [name removed],
Yes, you have it spot on –be honest and explain your situation at the time. Explain, in some detail, your hardships and I would even end the letter with a few brief ways in which your financial behavior has changed.
Hope this helps,
Ashley
Reader’s Question
Hi Ashley,
What is the best letter I can send to the credit card company to request my name to be removed from an account to where I am the Main cardholder, but due to an divorce and the agreement signed and documented in the courts that my spouse said he would pay for this debt as we divided the debt equally? Please advise.
Thanks
Response
Hi [name removed],
Unfortunately there isn’t one. The reason why is that divorce decrees (or any other verbal or written agreement made during the divorce) don’t mean squat when it comes to the credit card company’s ability to sue you for an unpaid debt. The truth is, if your name is on the account, you are liable for it. The divorce decree will not hold up if your ex-husband decides not to pay the account and they sue you.
Reader’s Question
Hello,
My mother used my name without my permission when i turned age 18. I found out about it when i turned 20. By then i owed about 12,000.00 dollars on 8 credit cards. I was able to remove 7 of them on my own. I was so happy. The last one is giving me problems. Its Capital One. 5,000.00 is owed. Half is all fees. I contacted the FTC, made a police report, and contacted the fraud department of Capital One, also sent many letters to the credit agencies. I call every week and have sent many letters. Nothing is helping. I am now age 24 and still cannot buy a car. How can I get it removed so i can buy a car or house someday?
Response
Hi [name removed] -
Unfortunately, your situation is not uncommon and it can be a hell of a task cleaning up the mess your mother created. However, you have made some good progress and taken all of the right steps to get this Capital One card taken care of. Capital One aren’t easy to deal with and I’ve also had problems. My recommendation is to contact the CEO directly. His office is pretty good about getting back to people if the problem is legit and it sounds like yours is. I suggest writing them a very kind and specific letter outlining your situation –similar to the letter you wrote me. Here is his mailing address:
Richard Fairbank, CEO
Capital One
1500 Capital One Drive
Richmond, VA 23285-5520
Let me know how this works out.
Best,
Ashley
Reader’s Question
Hello,
I have been trying to find out if I can remove one of two duplicate accounts on my credit report. Specifically, I have one negative entry from the original creditor who transferred the account to another agency. Then there is another negative entry for the same account from the collection agency who purchased the account. I have already settled this account but I have two bad credit entries for the same account. Can I remove one of them and if so which one.
Thank you
Response
Hi [name removed]
Yes, as long as the multiple negative entries are in fact duplicates and not separate items. If the entry from the original creditor is a late payment and the entry from the agency is a “collection” then it might be difficult to justify these as duplicates. Otherwise, I suggest writing a letter to the agencies stating that these are duplicates and to remove them right away.
Hope this helps.
Best,
Ashley
Reader’s Question
Hi. So my situation is I’ve just checked my credit report for the first time about a few months ago and I have two credit cards open under my name, LUCKILY with zero balances which was open two years ago. But the thing is, I’m not exactly sure If I have applied for one of the cards or not. There was a stupid promotion so I signed up for a card to get a free sandwich (I didn’t know any better at that time). I don’t know if I was accepted for that or not, but I’ve only applied for one credit card, which was a year ago that I am sure of, which I am currently using. So I’m very positive that one of those open credit cards, I have never applied for, but I’m uncertain about the promotion one..I’m still in college and learning more about this stuff. How should I handle this situation for my credit and also the credit cards? Thanks!
Response
Hi [named removed],
First you need to call both credit card companies and verify that you actually have the accounts. If they verify that you do have the accounts, do yourself a favor and close them. If they have no record of you, contact the credit agencies and dispute the accounts as “not mine”.
Have you ever heard the quote, “there is no such thing as a free lunch”? It’s true.
Also, read my article regarding college campuses and credit card companies
Hope this helps,
Ashley
Reader’s Question
Hello,
I have some negative items that will soon be at their seven year limit and will (hopefully) be removed from my credit report. Can you tell me which credit agency informs you of an estimated date when an item will be removed? Also I was wondering at what point do they start the 7 year “countdown?”
Response
Hi [name removed] -
When you get your credit report directly from Experian, they will include the estimated removal date. I don’t think the other agencies do this. To understand the 7 year “countdown” try to imagine all of your credit entries as bricks in a wall. Most of them are good entries, but scattered throughout the wall there are a few bad bricks. Now imagine that every year a new row is added to the bottom –pushing the other rows up one. Basically, when one of the “bad bricks” hit the seventh row, they are removed. So in that way, its seven years from the date it was added.
Hope this helps,
Ashley
Reader’s Question
Hi Ashley,
I just got married last month and we still living at my mom’s. We tried to buy a house but my wife’s credit is so screwed that the interest rates were astronomical. We’ve been looking for a good credit repair company but all seem to be rip-offs or have poor results. The reason I write you is to see if you know the people at [website removed]. Sounds good to me but before expending that kind of money I’d like to have some more info, referrals.. something If they keep up their promises it might be a good deal.
Thank you for you input.
Response
Hi [name removed] -
Thanks for contacting me. I do not recommend anyone use debt settlement companies or so-called, “credit repair” companies. I will tell you right now: most of them will rip you off and you will end up in a bigger mess than before. The thing to remember is that these companies do not possess the ability to magically “fix” your credit. That is, everything that they can do, you can do just as easy –for free! I recommend that you fix your credit report on your own by tackling one thing at a time. It takes time, but I assure you that using one of these rip-off companies will not speed up the process. Use the internet and my blog as a resource to further your credit knowledge and I am certain you can do this on your own. You won’t regret it. Also, start by reading the “My Mistakes” series on my blog –that is a good place to start.
Best,
Ashley
