Here is a great opportunity for you to ask any debt relief or credit related question and receive input from an experienced expert! Ask a question about settling credit card and other types of debt with your bank, a debt collector, or a debt collection attorney. Are you dealing with a debt buyer? Not sure what you are dealing with? Submit your question and CRN will help you with detailed and useful feedback.
Our commitment to you:
By submitting your questions to Ask CRN, you will receive balanced and direct answers. The more background detail you can provide with your questions, the more specific the answer you will get in return.
You can read answers to previously submitted questions here: Reader Questions
Ask CRN
You can ask just about any debt and credit related question here and get a dedicated reply by email. This is not published anywhere on the site. Sometimes I reply with questions of my own before I can offer actionable feedback.
Synchrony bank sold a $30,000 debt to Midland in Nov. of 2019. They have just recently showed up on my credit report. Does that mean anything like that they are getting ready to sue or something? And the last 2 letters that I got from them are in Spanish & I am not hispanic, but I could tell that they were offering 10% off of the balance & this was in Oct. 2020. A year ago, they wouldn’t discuss any kind of settlement but wanted me to make any kind of payment which I did not do. Should I call them now & make a settlement offer or continue to wait? I haven’t talked to anyone there for over a year.
Can you confirm the account balance is 30k?
If Midland has time to sue based on your states statute of limitations, I would be highly concerned about it. They sue a ton, and the deals when trying to settle are terrible compared to if you settle with them before the account goes to an attorney.
When did you stop paying originally?
What state are you in?
Yes, I can confirm the balance. I am in PA. The last payment made on the account when it was with Synchrony was 2 years ago.
Thanks. Midland Credit is likely the worst debt buyer to have your account go to an attorney for collection, and that is highly likely to happen at this point.
Debt collectors have 4 years from when you stopped paying to sue in Pennsylvania. They are within that time.
If your account is not in a legal, or pre legal status with Midland, this would be the time to get your best settlement outcome.
If you cannot get anywhere decent with them let me know right away if you want help. If the account is still in the right department, negotiators here can get you a 45% deal, or 50% with up to 24 months to pay.
Do not wait too long for help though. I think things will move rapidly toward escalated collection from here, if they have not already.
I have several charged off accounts that will be going off my credit report in the next few months. I am wondering if there are ways to settle these accounts and how best to go about doing that. They have been charged off for years, I have been paying regular small amounts but would like to find a way to just be done with all. All amounts are under $6,500 together they total about 15K. The debts are to Bank of America (2 different accounts), American Express, and a USAA credit card. I am wondering if I might be able to get a settlement agreement and pay them off for less than the whole balance. I watched your videos and read the articles but my situation seems a little different in that these are old debts. All accounts closed and charged of for longer than 4 years. Once the companies stop reporting them negatively, what happens? Any suggestions about how to proceed?
I would set up a phone consult with me here Sloan: https://calendly.com/debtbytes/15min
Be sure to put the details of the situation in the text box of the calendar app.
I want to talk through the payments you have been making, and the timing of them.
If the accounts have been derogatory for 7 years, and are rolling off in a couple of months, that is great fro your credit score! But recency of payments can still mean you could be sued for the debt, so settling could still makes sense.
After receiving a civil summons from a lawyer claiming to represent the creditor, 6 or more months after an accounts been unpaid, how does one find out if the debt has been bought by a debt buyer or not? On credit report it’s only stated that debt has been charged off.
When an original creditor sell the debt they will typically show the charge off, but a zero balance due and owing at the moment, because they sold it.
You can always call the creditor and ask if they have sold your debt, and to whom.
Most creditors do not sell debt.
wells fargo charged off my sons credit card debt app. $1500 5 years ago. how can he find out who bought the debt? he is trying to join the coast guard and they require that this is settled.
Wells Fargo has not been selling debt for longer than that. You can likely call Wells Fargo and they have it internal and you can resolve the debt with them. Let me know if that is not the case and we can go from there.
I owe 17000 to bmo credit card company. It is getting very hard for me to pay the min payments. I have missed some payments on a line of credit but try to make sure I never miss my credit card. I would like to try and do the lump sum payment, what should I do
How long will it take you to have about 40% of the balance on your BMO credit card? What is the interest rate on the card?
I am wondering, if I take a temporary lower rate, because it will help to stop accruing interest faster than I’m making minimum payments, will my credit score be effected?
Typically not, but that assumes you have not missed payments to date. It sounds like you are enrolling in a temporary hardship plan with just one creditor?
Hi Michael, I just wanted to know
1) if you recommend sending in debt validation / disputes letters?
2) I get the feeling that most American don’t do it so I’m not sure if there are any down sides?
Best,
Andrew
I am not a fan of sending dispute letters and validation requests. Not even to play hot potato with debt collectors because you cannot afford to, or have no desire to, resolve a debt. There are some limited times I would suggest using one for strategic reasons when trying to resolve a debt.
I cover the downsides in that link.
Got it thank you!
Just one follow-up question, what are the limited times that you would suggest using dispute letters?
The obvious instances are when there is something to dispute (legitimacy of the debt, balance, credit reporting inaccuracies, etc).
As a strategy, and certainly not limited to this, I may use it when I know the outcome may be the account will go back to the lender for placement with a different debt collector (can depend on where you are at in the collection life cycle), or as a measure to stall for a limited time, like 30 to 60 days, in order to gather up the money I need to settle.
I have a debt that has been places for income tax garnishment. Can I negotiate a settlement to get this account gone.
What is the nature of the debt, who is collecting it today, and how much is it for?
Hi Mike,
I have a AT&T wireless account which went to collection agency for not paying around $300 payment. Once I pay this amount, Is there any way I can get rid of it from credit report?
Please help!
Is ATT showing it with a balance owed, or a zero amount due? Is there a collection agency showing it too?
Thanks for your response.
I have not paid the amount yet so it is still showing as “Amount Due” in AT&T systems.
There was a collection agency involved initially in 2013 but I do not have any information about them.
Okay. So looking at your credit report now, only ATT is showing?
Just checking the Credit Report and I realized that collection agency name is “ENHANCED RECOVERY CORP” and “AT&T” name shows as creditor. Please advice on next step!
If Enhanced Recovery is not involved in the collection any longer, I would sent and credit bureau dispute to get them off. I would still want to resolve the debt with ATT, and would contact them to do that first.
If you find out Enhanced Recovery is still collecting let me know.
Thanks for your quick response, Michael.
In my Last credit report that I pulled in Nov 2016, it is showing 1 account went to collection agency and that is Enhanced Recovered Corp.
Is there any way we can find out whether they are still collecting or not? Please let me know.
Also, if they are still collecting, what is option?
Thanks for all your help!
Hi Michael,
I spoke to AT&T and I was told that my account was given to Enhanced Recovery Corp for collection. AT&T folks given me their number too so I called Enhanced Recovery Corp and I was told that if I pay the amount, they will update my credit reports fir this account as “Paid in Full” but they were not agreeing to delete this “Collection Record” from my credit report.
Can you please advice?
Thanks!
Currently, that is all you can realistically expect for updates to your credit reports when resolving collection accounts. The good thing is that is often all you need to make progress with your credit reports and financial goals.
Thank you very much, Michael for your time and support.
I really appreciate your help!
God bless you…
I live in South Carolina and received a letter saying I have 5 days to return a completed form listing my real and personnel property being sued for Credit card debt of 5500 . I am on disability and still owe over 35.ooo on my mortgage ( 18years )and only one vehicle Blue book value of 1500-2000 . No other assets can they take my home or car?
South Carolina courts will automatically file property liens in your count when there is a judgment. That does not mean they come and take your home, but you do have to resolve the judgment before you can sell or refinance your home.
Your car value is protected in South Carolina up to about $5600.
In 2003, I had a credit card charge off with the limit on the credit card being $4000.00, from a Georgia credit union; the debt is now at 16,500.00. I offered to make a settlement of $4000.00 and they denied the offer and will only accept $8,500.00 I was also told; the offer is only good for five days. Are there any other options are available to me in this matter?
Who is the collection agency you are dealing with?
What is the name of the credit union?
Is this a judgment debt?
I live and have a car loan in PA thru Fulton Bank. The car was repossessed for 4 missed payments.
Fulton Bank would not accept my offer to make a payment of the delinquent amounts (including repo costs). They will only accept total payout which is 18,000. I thought I read somewhere I could possibly sue them for not accepting payment to bring the loan back to where it should be.
Each state will have redemption rules about how to cure a default and get your car back. You may have acted too late, or they may have screwed up.
I am emailing you a list of consumer law attorneys with lending/leasing/repossession experience in PA. Talk to one or more and get a feel for the situation and what your options are.
Documents were forward on 10/27/15.
Have you checked with the CFPB to see if there is an update on their end? I ask because I tend to see the CFPB respond to consumers in a few weeks time. Enhanced Recovery would likely have responded to the CFPB by now.
Hi Mike,
When we previously converse, I stated that ERC would settle a debts. What I should have mention is that there were three invoices. When we Enhanced Recovery Company (ERC) talked about settling, I thought it was for all three since three invoices was one the form. Eddie states that my settlement would only be for the $657.00. The other amount of 40.00 and 38.50 would not be included in the settlement.. He stated that they could not report the $40.00 to credit report agencies. Well I settlement for the $657.00 Then a few weeks later, I received a letter ERC stating that I owe $40.00 and I had 30 days to reply. So now I am upset. I call the hospital and my insurance company. Both tells me that my bills were paid. And I the patient had no responsibility to pay. I call ERC and notified them that I had no patient responsibility. I fax all paper to them and have not heard anything from them. Can I obtain a lawyer to suit them for my money. I have report this to CFPB, and they have not responded to me. Do you know who I can contact to get this resolve.
When was your complaint filed?
I have judgment from CACH but paperwork was filed in a different county than the one I lived in at the time. Is that grounds for dismissal. I can’t afford to pay judgment or even settle.
It can be. You will want to run your entire situation by an experienced debt collection defense attorney. I can send you contact information for any I know of in your area if you post the name of a larger nearby city.
Hi Michael, you proved to be very helpful a few months back when I was served a credit card judgement. Now that it is behind me, I wish to clean up a few credit card balances & I wondered if you could offer a reputable credit card consolidation company to combine my debt into one monthly payment. I’ve done a little research on my own & I do not want to get in with a company that drags their feet only to negotiate a lesser amount to settle. I am not behind on my payments and I still wish to hold the credit card open with a zero balance, for emergency purposes. I simply wish to combine the debt & have one lower monthly payment, with plans to pay it off sooner.
Is there such resources available to me? Would I have to re-finance my home in order to do this?
You do not appear to be looking for credit counseling help to consolidate credit cards, but something more along the lines of a debt consolidation loan to pay off all of your combined balances.
You do not have to refi your home and get cash out to do this. There are alternatives, but qualifying can depend on your credit scores. What shape is your credit it in?
Good morning Mike, I finally made settlement offer to ERC. I have received my settlement letter to paid $327.00. They will in turn report this as a “paid settlement” to all credit reporting agency. I could not get it deleted but paid is good. I have forward a money order CCRR. Just awaiting for them to do their part.
Thanks again.
Nicely done SherrieD! It can take a few weeks for them to update the credit reports after your payment clears. Pay for delete is a long shot at best in these situations. Getting the account to show as resolved and nothing owed will allow you to make progress improving your credit.
I just wanted to jump in and let everyone know that I went to court today against Midland Funding LLC and I won. Well not completely yet but I had the Affidavit removed and the judge told them to get their act together and they have to come back with documentation. It was in Tennessee and I asked the them if they had a license in TN and she wouldn’t answer. It was a good day for the underdog. Now I am thinking about counter suing for violations with FDCPA. What do you think? Everyone had a smile on their face when I was done and on the way out the door I told another guy to do the same thing I did against them. Haha
Good job. Just realize that the collection attorney still can get there act together, but if they do not (and I am skeptical they will), they will likely dismiss it themselves, or the court could some time from now due to inactivity.
Hi Mike,
I have a cell phone bill on my credit report that has multiple entrylast payment was 3/2012. I contact Transunion and dispute the older entry which was Diversified. And two weeks later disputed Enhanced Recovery Company ERC. Transunion removed Diversified and claim to verify Enhanced Recovery Company. ERC has placed multiple flag on my credit report. It seem to me that they are trying to hurt my credit. Since January my credit score has increase. Can a collection agency post flag to your credit report every 3 months. What is the SOL for cell phone?
Debt collectors are generally reporting in order to hurt your credit.
Is it that they are posting a “most recently updated” every 3 months?
The SOL to sue for collection will vary from state to state. The SOL for a collection item to remain on your credit reports can also vary a bit, but generally speaking, an unpaid cell phone in collection can stay for as much as 7 and one half years from the date you stopped paying.
I thought in Louisiana the SOL was 3 years. Is there anything I can do concerning the flags on my credit report every 3 months. I want to negotiate but I have read that this company does not respond to negotiation. Once a payment is made the account is reactivated. Is this correct?
Not for credit reporting it’s not. You may be confusing the limits for filing legitimate collection lawsuits on open accounts in LA, with the limits for how long derogatory items can stay on your credit reports.
If I understand what you mean by “flags” on your credit report correctly, no, not really. Enhanced Recovery will settle debts for less than the balance owed. The problem can often be that they, and many other debt collectors, do not offer great pay off reduction on smaller balance accounts.
What is it you mean by an account being reactivated?
You are right! I am talking about this company flagging my credit report every month as a past due account,
Great if they settle for less. But I have read that they will accept payment then reactivate the account. This is not what I want., But I guess this mean that I will need something in writing from them.
Thanks Mike I do appreciate you time.
Mike should I validate the debt
and then negotiate.
If you know the phone company sent or sold the debt to Enhanced Recovery, and your goal is to resolve the account, I would not request validation, as I essentially have that.
If you are concerned they are legitimately collecting than yes, by all means I would request debt validation from Enhanced Recovery.
Thanks Mike,
This debt has been transferred to 4 collection agencies. I recently disputed with Transunion because there were two entry on my credit report. One was cancel and other was verify and remained on my credit report.
The funny thing is for 3 months I received telephone from them. Now the calls have stop and the debt is being reported as seriously past due. I have not talked with ER and the debt is scheduled to be removed in 2019.
I just want to resolve the debt. What is the best way to proceed in clearing this debt. What shall I do request validation from me and then negotiate?
People are often more comfortable sending in debt validation letters and waiting for the reply in order to progress with resolving the account. I support that.
Sometimes your debt validation request can case the account to be place with another debt collector, or placed with the legal department.
If your comfortable that Enhanced Recovery is the legitimate collector on the account, and your goal is to resolve the debt, I would call them and do that.
Thanks for you have help me a great deal. This has happen to me, I request validation and the debt was transferred to another collection agency. I though it was the OC whom transferred the debt to another collection once a year. This is my last question for awhile.
Thanks again.
Your debt can get sent off to a different debt collector at different intervals. There are many variables that will cause collectors to change, and sometimes knowing that information will help you.
Good morning Mike,
I call ERC to set up settlement payment in exchange for deletion. The agent wanted me to settle for 327.00 which included $9.00 processing fee. Then, she inquired to whether I still had my cell phone. I told her that it was lost. But she could not give me answer on deleting from my credit.report.
She place me hold to get her supervisor assist, who stated that he could only report my payment as paid in full. But he would not give me anything in writing until I made payment to him. And then he would send me an email referencing paid in full. Because I would not give him credit card information, he question me about not paying in 3 years. He stated that I could give him post dated check. I told him that this was illegal. He stated that his company does all the time. What do you think about my conversation with him. Is it illegal to give an collection agency posted dated check.
Pay for delete is hit or miss (mostly miss).
An alternative to getting any agreement in writing is to record the phone call, and let them know that you are and why. Keep the recording until you receive written communication and then keep after that too.
I am not sure I would define the scenario as a post dated check if you are giving payment information over the phone and with a set date, say three days later, for process. Talk to an experienced debt collection defense attorney in your state about that, and what or if, they have seen your courts rule on about that.
Hi Michael,
Thank you for the information on your site.
The information here is very helpful but not easy to find. I had several tabs opened and when I closed them, I was not able to locate the information again.
I have several credit card debts and 2nd home loans that are now with collection agency or JDB. These are all several years old, from 4 years ago or more. I don’t want to disclose much more information as this is open to the public.
With the debts several years old and that they change collection agency, I plan to go through my credit reports and make a spreadsheet to get a handle on the amounts I owed.
I also want to call the OC to see who has my account. You had an article about speaking to the OC. Can you provide the link in case I can’t find that again.
What information should I give and not give out when calling OC?
How do you know if a debt is assigned, transferred, or sold?
And how do you know if it is a JDB?
Jared Strauss mentioned in one of his articles that a full credit report is different than the ones from Credit Karma. I didn’t know this. I have already obtained all three free credit reports from annualcreditreport.com four months ago. How do I get full credit report like these? Do I go to the individual website and pay for one from each credit agency?
I had another question posted today also about links to your services and fees. I was not able to find it on your site.
Thank you very much.
You can use the search box in the upper right of any page to find what you are looking for on the site.
With the questions you are asking above I would recommend you read through the article I wrote for another site covering the topic of finding out who you debt collector is. I should have covered the topic more thoroughly here on my site by now, but have long postponed adding the debt relief guides on second and third stage collection while waiting on highly anticipated regulatory changes in the debt collection industry.
If you are at a point where you are making plans to deal with your debts I would indeed pull accurate credit reports. If you have not already used up your one free report each year available at https://www.annualcreditreport.com/ I would use those before paying for them.
You are welcome to post in the comments of the different pages you read throughout the site.