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    #16
    Keep in mind that after 7 years doesn't necessarily means it will be removed, I had a bill to stay around well after the 7 years

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      #17
      This sounds like an uphill battle to fight something that happened so long ago.

      Moving forward...

      According to the table "How FICO score affects mortgage rates"
      760 to 850 tier 5.780%
      700-759 tier 6.002%
      660-699 tier 6.286%
      620-659 tier 7.096%
      580-619 tier 8.583%
      500-579 tier 9.494%.

      So, unless he's at the bottom, there wouldn't seem to be a big difference for one questionable event. And even then, with a mortgage without penalty for prepayment he might be able to renegotiate after establishing a good history of on-time payments.

      Right now, I wonder if there aren't banks that are looking for lenders who are good risk despite a trivial blemish. That is, does he have a secure job with an income well able to meet expenses?

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        #18
        I always take care of any issues asap, and do not ignore them. I made sure I handled a bill I disagreed with from a dentist lately b/c I didn;t want it to escalate.

        I had some major cell phone issues with my provider in the past. Me an dh have free phone to phone. The company didn't give us our free phone to phone minutes one month. They charged us to call each other and we talk a lot. So if we were on the phone one hour, we got 2 hours against our monthly minutes which were a lump sum for our family plan. Not even a supervisor would remove the charges which were obviosly bogus and in excess of 2 hours. I had to wait weeks for it to be transferred to some second party dispute place. I owned nothing over my monthly contract when all was said an ddone, but I was livid it happened and it took weeks to fix and my time.

        We get the contracts for the free phone and keep a good eye on our minutes.

        Also I accidently went on the internet on my phone while I was playing with my buttons while bored in line. They took the charges off. I had no clue I went online. My phone is basic and bad for online. I won't play with my phone again.

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          #19
          Originally posted by vole View Post
          This sounds like an uphill battle to fight something that happened so long ago.

          Moving forward...

          According to the table "How FICO score affects mortgage rates"
          760 to 850 tier 5.780%
          700-759 tier 6.002%
          660-699 tier 6.286%
          620-659 tier 7.096%
          580-619 tier 8.583%
          500-579 tier 9.494%.

          So, unless he's at the bottom, there wouldn't seem to be a big difference for one questionable event. And even then, with a mortgage without penalty for prepayment he might be able to renegotiate after establishing a good history of on-time payments.

          Right now, I wonder if there aren't banks that are looking for lenders who are good risk despite a trivial blemish. That is, does he have a secure job with an income well able to meet expenses?
          Hi vole,

          my friend has a secure job and his score comes somewhere in the middle. this incident makes a difference of 0.8 interest rate. That works out to a lot in a long run..

          Thx
          Jsk

          Comment


            #20
            Originally posted by jsk View Post
            Hi vole,

            my friend has a secure job and his score comes somewhere in the middle. this incident makes a difference of 0.8 interest rate. That works out to a lot in a long run..
            I'm not sure how much it will cost compared to many other little charges that are tacked on a mortgage. For instance, there's title search and title insurance. Several articles I've read about them say they aren't necessary (except where the sellers are questionable) and they just give extra profit to the lawyers and the title search company. While it doesn't seem like a lot of money, consider the loss of interest it would have created of the lifetime of the loan.

            Your friend might do better in the long run getting rid of the extra add-on charges even if it looks like he's paying 0.8% more.

            -Dave

            Comment


              #21
              This may not be the most moral suggestion for this, but it may help your friend out.

              Have him dispute the collection online (or in writing) with one of the credit bureaus as being inaccurate. The credit bureau will contact the collection agency to verify the facts. On more than one occasion, I have seen unpaid and settled collections removed through the dispute process. Yes! Even 100% accurate unpaid collections for thousands of dollars. If it drops off one report, dispute it with the others and they will follow suit. Once it's off, the credit score will shoot up immediately as if the collection never existed.

              It doesn't always work, but I've seen it work (much to my surprise) too many times to ignore. Here's my theory to why this happens. In all the cases I've seen, the negative remark has been 5+ years old. Collection debt is "sold" from collection agency to collection agency over time and they may lose some of their history, data, or evidence of the debt. When the bureau calls to verify, the agency may not have enough supporting facts to report it, and must claim it as non-existant.

              In case you're wondering about the legality of this for the consumer, it may surprise you that it is perfectly legal. The FCRA states that "inaccurate or unverifiable information" must be deleted completely from the credit report.

              Source: 15 USC 1681a subsection 5A
              Last edited by boosami; 01-07-2009, 07:55 AM.

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                #22
                Thanks boosami. My friend sent out notice to the collection agency with a lawyers help. This worked and the collection agency has removed the charge. My friends credit score has improved a lot.
                The collection agency was being unfair and kept adding the charges every month to make it appear as a recent issue.

                Thanks everybody for all the valuable suggestions and tips.
                Last edited by jsk; 03-11-2009, 05:00 PM. Reason: wanted to add emoticon

                Comment


                  #23
                  Originally posted by jsk View Post
                  Hi
                  Wish you all a very happy new year.
                  I am posting this on behalf of friend. He was using sprint and was charged more than what he was told for international roaming. So my friend called up and told the sprint about this. Apparently sprint didn't agree and transfered the case to the collection agency. My friend wasn't aware of this, until he started getting the calls. The amount wasn't too much to pay but didn't want this to reflect in his credit history. now 61/2 years later it still remains in his credit history and when he is looking for buying a house, the rates are high. Any suggestions about to how to have this fixed? my friend is suffering for no mistake of his.

                  Thanks in advance
                  J

                  Did he ever file a complaint with the BBB? If not, this would likely solve the problem. Every issue I ever had with a company that didn't resolve it for me, I filed a complaint. Within a month, I was always credited.

                  With his particular situation, he needs to file a BBB complaint. Because it has already effected his credit, this will take longer to fix because once Sprint decides to go ahead and change it's reporting, it can take up to a couple months for that to reflect on his credit report. But within a few months of a BBB complaint, things should be better.

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                    #24
                    Within a month after reporting, the credit score jumped up. So didn't go to BBB.

                    Thnx

                    Comment


                      #25
                      Originally posted by jIM_Ohio View Post
                      Things like this piss me off. But this is also a reason to NOT have contracts.
                      When I purchased my cell phone it came with a 1 year contract. I did not sign a new contract at the end of that period. That was 6 years ago. I continued paying my bill on time and I have had no problem with service without a contract.

                      Now if I were to run up a large amount of charged from going over my minutes, roaming, etc, I am sure they would still want to collect despite the fact that I did not have a contract.

                      For the OP, your friend should contest the charges. I'd make the collection company prove I owe the bill. I did think these sort of things went away after seven years, but I do not know.

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