Reader’s Question
My fiance and I are planning to buy a house within the next few months. We recently submitted a preapproval application with our bank and I finally convinced him to get a free credit report from annualcreditreport.com. We discovered that there is a incorrect item on his report from about 7 years ago that is due to go off his report in April (approximately the same time that we’re hoping to close on a house). It’s for an unpaid utility bill for less than $50 that is listed as being written off. My fiance has documentation to prove that the utility company was in error and did not cancel his account when he moved as requested and the charges were not his (and he send multiple letters to that effect at the time they were hassling him about payment). Is it worth our effort to try to get this item off his credit reports? He has no other potentially negative items and I have “perfect” credit. Should we just let it fall off his report?
Thanks!
Response
(by the way — to the reader who sent in this question, your reply email address wasn’t working, so I hope this response finds you)
Hi [name removed] -
I would write a short letter to each of the credit agencies, simply stating something such as…
“To Whom It May Concern -
After reviewing my credit report recently, I noticed the following inaccuracy: Utility Company Inc, Acc # XXXX. I dispute this as inaccurate and kindly ask that you remove it.”
I am quite certain since it’s so old you’ll have no problems getting it removed. It’s doubtful the utility company will take the time to verify such an old account (if they even can, which it sounds like they can’t).
I wouldn’t just wait for it to fall off right before a home purchase –you don’t want it to affect your mortgage interest rate.
Best,
Ashley
Reader’s Question
Hello Ashley,
I recently had about 4 accounts removed from my report because they were opened by someone else when I was underage. I have been paying these credit card bills because the person who opened them stopped paying and they were affecting my credit. My boyfriend recently told me I shouldn’t have to pay since I didn’t open them and told me to dispute the accounts which I did. So they were effectively removed from my credit account but I am still receiving bills from these credit card companies. If I stop paying will they be able to put it back on my credit report?
Thanks in advance!
[name removed]
Response
Yes, more than likely they will –you need to start by calling the credit card companies right away and tell them that these are not your accounts and to stop sending you bills. If they are not in your name, they are not your legal responsibility. If you made some sort of arrangement with the person who opened the accounts and this wasn’t identity theft, I would suggest honoring that arrangement for moral reasons.
Best,
Ashley
Reader’s Question
Dear Ashley,
I am attempting to negotiate payment in full of a charge-off with WaMu in exchange for removing the tradeline from my credit report. I wrote a letter similar to the one you’ve made available on this site (thank you!) and received a response that says WaMu’s records are correct and if I have issues with my credit report I should take it up with the three credit reporting agencies.
I’m not sure what to make of this. My thought was to send another letter thanking them for the information but informing them they missed the point (very politely and graciously, of course) and restating my proposal.
In closing the letter I wrote “upon receiving your written agreement, I will immediately begin payments… ” but their letter was not an agreement and didn’t address my proposal. So if I send another letter, and include your closer of “your written response will serve as agreement,” will I have to immediately begin payment upon a written response of any kind?
What are your thoughts? Should I send another letter? Or should I start making payments as I proposed?
Thanks a lot for making your stories and resources available.
regards,
[name removed]
Response
Hi [name removed]
Don’t start making any payments until you get something in writing from them honoring your proposal. How old is the charge off? If it’s a fairly new charge off (within 5 years), you’re going to have a real difficult time getting them to remove it from your credit report. Your best bet (perhaps your only chance) is to offer to pay the balance off in FULL –one payment.
Hope this helps,
Ashley
Reader’s Question
Hello Ashley -
I had an account with Citi that went to collections after a charge off, can I bypass the collection agency and call Citi directly?
Thanks!
[name removed]
Response
Hi [name removed]
Yes, in most cases you can do this. As a matter of fact, I recommend always calling the original creditor first –that way you don’t have to deal with scum bag collection agencies.
-Ashley
Reader’s Question
Hi -
I have several credit cards in varying stages of delinquency. How far behind does one typically have to fall, before a creditor is ready to accept a reduced settlement? And when do creditors typically give up and send the account to a collection agency?
Response
Hi there -
In my experience, credit card companies usually do not accept a settlement before the account has been handed over to a collection agency. This is particularly true for credit card companies. However, with that said, it’s not a bad idea to ask them if they’d be willing to work something out. Your number one goal ought to be to keep these accounts out of collections. Dealing with collection agencies is not a pleasant experience. Plus, you run the real risk of adding yet another bad entry on your credit report. Basically, creditors can send the account to collections whenever they see fit. I would, however, expect to see the account go to collections after it has been between 120 days and 150 days late.
Hope this helps,
Ashley
Reader’s Question
Do you have any advice on debt settlement companies? I am involved with one now and I am not sure I made the right decision.
Thanks
Response
Hi there -
I personally do not like debt settlement companies and wouldn’t advise anyone to use one. The true benefit from getting out of debt is the joy and pride that is gained from knowing you did it yourself –not to mention a sincere and recognized change in your future behavior. That is, once you have gone through the hell that is required to get out of debt, you will never want to do it again. Besides, more than likely you will end up paying much more using a debt settlement company.
Best,
Ashley
Reader’s Question
I sent 3 of my creditors goodwill letters about 2 months ago. How long does it take for a response? And if nothing happens, what should be my next step?
Thanks
Please help.
Response
Hi there,
Are these accounts paid in full? If not, offer them a settlement in exchange for complete removal from your credit report. Get everything in writing. If they are late payments, read my post on how to get a late payment removed. I would give it another two weeks as well.
-Ashley
Reader’s Question
Dear Ashley -
I wanted to know. I have a big account on my credit report of about 17,000 dollars. It’s from a car I used to have. Is there anything that I can do about that to try to remove it. I can’t afford to pay that amount and the collection agency keeps bothering me. Please help. Also, if any account is not on your credit report do you still have to pay off any outstanding balances?
Response
Dear [name removed],
A debt with such a high balance would be near impossible to get removed. Even if you do get it removed, the company will probably still sue you before the statue of limitation is up in your state. Just because an account is not listed on your credit report does not mean you don’t still owe the debt.
Hope this helps,
Ashley
Reader’s Question
Hi Ashley,
I have an unpaid account in collections. But the original creditor is also on my credit report. Which one should I negotiate with to pay and have it removed? Do I negotiate the full amount, or the settlement amount?
Response
Hi [name removed],
Try to stay away from collection agencies at all costs! They are liars and will say or do anything to get you to pay. If you can, negotiate with the original creditor –offer to pay them in FULL (if you can) if they agree to take the bad entry off of your credit report. Get everything in writing and never give out your bank account information. You can read what is likely to happen if you give your bank account number to a collection agency on this article regarding negotiating with creditors. Also, check out the free dispute / negotiation letter section of the site for free sample negotiation letters to get you started.
Hope this helps
Ashley
Reader’s Question
Dear Ashley,
I’ve have charge offs on my credit report that are about 3 years old, would it be better to try and fix them with he original creditor or the collection agency ?
Thanks (name removed)
Response
Are they paid? If not, are you looking to pay them? If they are not paid, do not deal with the collection agency! Contact the original creditor and negotiate payoff. There is no advantage to working with the collection agency. Unless the account was out right sold to the collection agency, it’s most likely that the original creditor is simply using the collection agency to collect the debt. Therefore, they will also still work with you directly.
Ashley
