When is a Debt Put Into Collections
I am trying to get a USDA loan. The rules stipulate that you can not have had "accounts converted to collections in the past 12 months." My credit report shows that National Credit Systems opened the account on 10-2007, it was reviewed on 10-2008. The delinquency date is 10-2008, as is the date last active and the payment pattern start date.
I have the original letter from National Credit Systems dated Oct 22, 2007 saying the account was placed in their office for collections, and that I have 30 days to dispute. The debt ($168) wasn't paid because I never received a bill from my old apartment complex. All I wanted to see was a bill, which no one ever sent me. I then tried to send a good faith letter to NCS a few weeks ago saying I will pay the debt if you take it off my report, and didnt hear from them.
So I am losing a great loan over a $168 debt, which I have in my pocket.
So who is right? I read the letter to mean that it was put into collections in 2007 not 2008. My broker has been really good about this so far, but he is pretty much sticking firm with what he sees. Is this legal? disputable?
Re: When Does Collections Become Collections Usda Loan
1 Dispute the entry with the credit reporting agency. If the entry comes back as verified, it is a violation of the FCRA, as you can prove that they account is not being correctly reported.
2 Send the CA a letter by certified mail, and tell them that you dispute the incorrectly reported entry.
3 Dispute the entry with the CRA again, if possible (Experian will not let you dispute the same item twice) If it comes back verified again, you have some great proof
4 Sue the collector for violations of the FDCPA, and the FCRA. You can get actual damages in the amount of the loan, statutory damages of $2,000 (1K each for the two laws broken) and the FCRA allows punitive damages. They nearly always settle, and you will get cash and a deletion as your settlement.