Really need your help here - CC debt/fraud - Update

[annmarie780]

My g/f is in real need of help. She called this morning crying that she was tired of collection agencies calling. She apparently has about 5 cc with about $10,000 debt between them, all maxed out and a few store charge cards all almost maxed out also. She pulled her credit report and there were a few collection accounts and also a few that she actually knows nothing about. There's apparently 2 different social security numbers on her report and one address that she never lived at. She said she called Experian and they want her to send in paper work of the "alleged" fraud. How do you send in paperwork for things you don't know about. I know the experts on gottadeal can really help with this one. What else can she do? I forgot to mention that her FICO is 519

[baseball mama]

check out creditboards.com

[kranky]

She has two separate problems - her accounts in collections, and the incorrect information on her credit report. Let's see what pryan67 has to say, he's really the local expert on this type of thing.

[annmarie780]

check out creditboards.com

I did check but since it's my first time there it's kind of confusing. Not as easy to read as it is here.

[kranky]

I did check but since it's my first time there it's kind of confusing. Not as easy to read as it is here.

Tell your friend to read the stickied threads in the Credit forum there. Yes, it's a lot of information and it takes time. But she has to do it right. There's no quick fix. If she gets stuck, people there will be helpful. But she needs to start with the stickied threads which apply to her situation.

[pryan67]

well, first of all, there's a VERY good chance that ALL of the collections are inaccurate...

she really needs to read the stickies as mentioned above...

but in a nutshell...

she has the right to request they prove what they're claiming...

EVERYTHIN must be in writing...she needs to protect her rights...that's of PRIMARY importance...these CAs will lie, cheat, and steal...they'd sell their own grandmother into slavery if they could make a buck


as for things she doesn't know about...there's a sample letter forum at creditboards...there's a sample letter there that was written specifically for these unknown debts...



BUT...the other thing she needs to work on is her spending habits...having those cards maxed out was her doing...she needs to get on a budget and NOT get in any deeper

[chrisjuvers]

I had a friend who came up with a good solution to curb her spending. She took her creditcrads and froze them in a pitcher of water. She didn't have them with her so she could not use them for impulse buying. If she really wanted something, she had to wait 30 days before buying it. Most of the time the item, 30 days later, is not on sale and it is not that attractive at regular price. This strategy seemed to work for her. Also remember that she was impulse buying and using store creditcards. 99% of those impulse buys are for items that are WANTS and not NECESSITIES. That may work for the store creditcards that your girlfriend is using.

On another note, has she ever kept track of where she spends her money? A lot of people are unaware, until the write it down, that the latte they get in the morning ( a small $4 splurge) is costing them $80.00 a month. It is the little things that add up and most people are unaware of where all their cash goes. What about a debitcard? You can only spend what's in your account so you're not overcharging or gaining interest with purchases. It is ideal to track your spending for at least 30 days but even 15 days will be a big help.

First thing she need to do is check all 3 creditreports and start the disputing process. Keep all correspondence from everyone and write down who you talk to. Get the persons full name and ID number from each place. This will be a long road for her and it will require a lot of time and patience to get everything cleared up. Has she always lived in NYC? Some states are more lenient that others in reporting cc info or collection to the 3 CB's. Here in IL, if you're late with a payment it stays on your record for 7-10 years.

Hon, I really feel for your GF. My sister went through the same thing. Everything has been cleared up but it took her about 2 years. Even with the whole "30 days" to respond to everything. There were even a few items that the CB said were verified and they were her bills. That is impossible of course, but some items ended up staying. It might come down to eating Ramen noodles so she can save money to pay her debts off but it is worth it in the long run. Start paying right away to the debts that she is positive that are hers and then start the dispute process.

[pryan67]

well, there's no reason for anything that's not accurate, complete, and verifiable to stay on someone's reports (and the ones that don't meet that criteria accounts for 99% of the collection accounts)

[pryan67]

as for paying the ones that are hers...sure...if they're still with the original creditor...but if they're with collection agencies, don't pay them a DIME unless and until they can prove what they're claiming, and that they're reporting it correctly on her reports

[annmarie780]

Update:

I gave her all the advice that was given her on GD and she followed through and a few of the things were taken off her credit report and a few stayed. Even a few that were disputed. Amazingly though her credit score jumped from 519 to 530 :D. A step in the right direction. Yesterday though I was with her while she made a few phone calls to one of the collection agency and the agent had the nerve to tell her that since she wants to get her credit cleaned up she should just go ahead and pay the $74 that they say she owes. Apparently it's a debt of $59 for something owed in 2005 that she doesn't know of with interest of $15. There's also a charge of $125 (maybe there's interest also added?) owed to the Library that is valid. Should she pay the debt to the library or should she pay to the collection agency? And once paid does it go away off the credit report? Thanks guys for all your help. Looking forward to more answers.

[mysschevous]

Stay OFF the phone. That is the worst thing she can do. Do all correspondence in writing.
And NO paying it does not remove it from your credit report.

[pryan67]

Update:

I gave her all the advice that was given her on GD and she followed through and a few of the things were taken off her credit report and a few stayed. Even a few that were disputed. Amazingly though her credit score jumped from 519 to 530 :D. A step in the right direction. Yesterday though I was with her while she made a few phone calls to one of the collection agency and the agent had the nerve to tell her that since she wants to get her credit cleaned up she should just go ahead and pay the $74 that they say she owes. Apparently it's a debt of $59 for something owed in 2005 that she doesn't know of with interest of $15. There's also a charge of $125 (maybe there's interest also added?) owed to the Library that is valid. Should she pay the debt to the library or should she pay to the collection agency? And once paid does it go away off the credit report? Thanks guys for all your help. Looking forward to more answers.



how does she know it's valid? Because the CA says so?

Heck...She owes ME 150 for the library....I say so...so it's valid, right? Have her pay ME,....



no...it will NOT go away from her credit report...in fact, if she just pays it, it's likely to HURT her score



have her check out creditboards.com

those items CAN be removed from her report...and she CAN pay the people she owes the money to....the problem is going to be KNOWING who she owes....she can NOT just go by her credit reports...those are notoriously inaccurate....what if (which happens ALL the time), the CA has sold it to another company? Think they'll just send the money back? Not a chance...tehy'll keep it...and then she'll STILL "owe" another company the money


STAY OFF THE PHONE!!! That CA has already violated her rights under the Fair Debt Collection Practices Act...they said that paying it will clean her credit...that's a LIE...and it's specifically forbidden for the CA to lie like that...

the 59 dollar "debt" and the (likely) illegal interest is also possibly illegal...


I'm guessing the library "debt" is with Unique collections? They're crooks...all sorts of horror stories about them...


but really...number one rule is to NEVER talk to them on the phone...it serves YOU no purpose, but it only HELPS that CA...

check out the website above...there's no reason she can't get this all cleaned up....legally...quickly...and ending up paying ONLY who she owes the money to, rather than some scummy collection agency that may or may not own the debt....if they DO own it...then make them PROVE it...otherwise she's just throwing her money away...