Two For Credit Stew

Kind of a “credit stew” if you will….

I just read “Starting Over” and it has prompted a question or two….  (and maybe a few comments about the many, MANY other posts I have read).

On a Medical account… I made 1 lump sum and then payment arrangements to a CA (Automated Collection Services) very shortly after it appeared on my CR. As you stated it would be… it is being reported each month as a more recent event and lowering my score. Unfortunately I read that letter after the fact. The CA is doing a monthly direct debit until Dec. 2008. The bill is a little over 7000.00 for removal of my gall bladder. The insurance didn’t pay like I expected because it was out of network (I was on vacation). I timed my debit to stop about the latest time the Insurance Company should respond to my appeal sent by the doctor himself. I figure my portion is probably about 1000.00. 

So here I am, trying to do the right thing- and getting screwed in the process. I firmly believe that we should pay for services and products. It’s how our economy works. But I also have to look out for number 1. Any advice to remedy this situation?

On a side note….   Does correct/incorrect personal info effect credit score. How about incorrect income data?

Is there a “Credit Anonymous” group for those of us that are becoming obsessed with this issue?

Is there an Acronym Reference Page for your site? LOL

I noticed you don’t like to name names… but- how do we know who is a JDB and who is an assigned CA? Many already lie- why would I want to ask them?

How about the Corporations (particularly Like NCO) that own other business names and report using those other business names-  how do I track those down? I had an attorney to call 1 company … no more collection calls-but where does the chain of “business names” end? They just pass it off to another CA- but it’s still them!

Consequently… the JDB is mad at me for this so as they get deleted because they cannot verify because it is beyond the SOL and I have proof I paid it… they just wait a month and add it again. Can I get a restraining order against a JDB to protect the security and validity of my CR- or is MY credit report not considered MY property. If it is not MY report-  wouldn’t that make it a “product” which could very well skew the validity of its intended purpose?

Can an agent of a CA be personally sued?

I was told by a lender that FHA mid score requirement was raising Monday (Tomorrow, June 2, 2008) from 550 to 580. I didn’t buy 2 years ago- the market was too high for me. I was offered a variable rate- but declined and continued to rent… (Thanks for the advice dad!). I am sorry this is happening but… buyer beware. So now at 565, 564, and Equ 530 (Thanks NCO for the low equ score) can I sue the CA for the amount of extra interest I will have to pay if/when I get a loan? I now have the income for the less inflated market… I even have a sizable down payment of 20 percent of an (affordable to me)house and my credit limit on the CC causing all this grief was only 500.00. 700 of which I paid!

Is there a bill held up somewhere in congress requiring a credit/debt course to be completed prior to high school graduation?  If not let’s get that done quick!  My issues are from when I was 18. I am 37 now!  I will say-  my third grade students are being warned about the danger credit cards can pose (in their language of course)!  Ha ha ha

Sorry about all of the questions…  I love that this site and your time responding is free…  I don’t have a lot of money but I have received a lot of helpful info from you. I would love to make a donation to your site. Do you have something set up for that?

Have a Fabulous day!

Kristi

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Hi Kristi,

I’ll answer your questions in the manner of credit stew.

There aren’t that many acronyms used on this site, but you are correct that we should have an acronym page, so here it is:

BK = Bankruptcy

CMRRR = Certified Mail Return Receipt Requested

CA = Collection Agency

FACTA = Fair and Accurate Credit Transaction Act

FCRA = Fair Credit Reporting Act

FDCPA = Fair Debt Collection Practices Act

FHA = Federal Housing Administration

FHLMC = Federal Home Loan Mortgage Corporation

FNMA =Federal National Mortgage Association

HIPAA = Health Insurance Portability and Accountability Act

JDB = Junk Debt Buyer

SOL = Statute of Limitations

VA = U.S. Department of Veterans Affairs

I saw references to the following articles in your post: Collector Stars in “Catch Me If You Can” and Credit Repair Brothers & Sisters.

Yes, an agent of a collection agency can be sued under the FDCPA.  Section 1692a(6) of the FDCPA reads (in part) “The term “debt collector” means any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another” (emphasis added).  A recent case in Kistner v. Law Office of Michael P. Margelefsky, L.L.C., 2008 WL 495345 (6th Cir. Feb 26, 2008) concludes (in part): “..we have determined that Margelefsky is a “debt collector” who may be held individually liable for any violations of the FDCPA”.

FHA score requirements are not raising on Monday, or Tuesday, or Wednesday, etc…  It may be possible that an individual institutional lender may be raising score requirements, but the Dept. of Housing and Urban Development (HUD), which makes FHA possible, is not raising requirements.  As a general rule, you want to raise your credit score above 620 anyway, so as not to get hit with the pricing adjustment (higher rate and higher closing costs) for credit scores below 620.  It is, however, still possible to obtain an FHA loan with a credit score down to the low 500’s.  If the score is below 620, then it is really going to depend on the overall look of the credit report.

Yes, you can sue a collection agency for having to pay extra interest or for being turned down for credit.  That is actually a prerequisite of sorts for proceeding with a solid FCRA claim; the consumer having been ‘harmed’ in some way by the misreporting.

We have some advertisers on the right side of the blog.  They are generating some revenue for our IT Department (which is my brother Phil BTW) and that combined with the knowledge of knowing that we are helping people out of this credit mess and onto the right road is all of the compensation that is needed.

Thanks for the questions and hope this helps.

Paul

This author is not an attorney and this information should not be considered legal advice.  Please consult an attorney for legal advice.