Don't pay RBC. It's debatable whether it'll drop off in 2011 or 6-7 years from the date you paid it, so why take the chance? Like I said before, save your $10k for your down payment.

You wouldn't be able to get a mortgage from RBC, that's for sure. They have crappy rates anyways! But having that debt fall off your credit report next year means that nobody will ever know, asides from somebody working at the Royal Bank. There's no way it can hurt your application for a mortgage from some other financial institution if it isn't on your credit report.

Hey guys,

Just an update:

I paid the CBV Factored Telco bill and it dropped off my credit report. My FICO score has gone up 20 points to 660.

I have been speaking to different mortgage brokers regarding getting a mortgage (not actually trying to get pre-approval yet or anything but more so advice). I have been hearing conflicting things regarding the royal bank debt though:

- some people are telling me that whether i pay it or not, the charged off RBC line of credit will just "fall off" in 2011;
- some people are telling me that because its a significant debt with a major lender that it could affect my chances of getting a mortgage if i don't pay it.

I guess I'll try to update you guys as we go along, but if someone could give a definitive answer that would be great. Ladyincredit did an amazing job in this thread answering my questions but I just want to reiterate that while I understand that it won't affect my score after 6 years, I'm not sure if there would still be some kind of affect in terms of getting a mortgage...Thanks again for all the help and support, guys. Things are definitely looking brighter =)

hi there pokerfan,

how is it going with your credit card debts? are the debts still existing or it already fell off?

i saw that your have a lot of credit cards in hand in the past. are you still using all of them? what credit cards are you using regularly?

how about your credit report? is it improving or still having lots of problems?

Depends on your situation, you can settle for as low as 10%.

If the date of original default on the RBC account was July 2005, it should be off your credit report by July, 2011. All the other ones should also disappear 6 years from the FIRST default date.

A lien would only exist if it was a secured loan, but the RBC account was a revolving line of credit, which is unsecured debt. Thus it will show on the TransUnion file under the Tradelines/Account section. It also has likely generated multiple hard and soft inquiries on your file that will stay there for 6 years or more, and at least 3 years on your Equifax report.

A lien can also be obtained as an enforcement writ if someone has obtained a judgment against you in court and you fail to pay. But then it would show under the" judgment/ public records" section of your report.

Before anyone gives you a future mortgage they will do search under your name with the personal property registry in your province and the writ enforcement office. You can do one yourself for about 15 or 20 dollars, but it doesn't sound like there's any point.

If you want to resolve the debts, you can probably settle for a lot less than than the listed amounts. However, banks are notoriously stubborn. They seldom take less than 50% I think and usually ask for 80%. They figure 50% to 80% of nothing is better than 10% or 20% of something.

As to how to read your credit report, you need to study the example on the link I attached. TransUnion has revised their format somewhat since that FCAC document was put out. Call TransUnion if you like but you'll just get India

Thanks for taking the time to clear things up for me, rickstarr & Ladyincredit; so I guess the general consensus is, there's really no point to me doing anything for now and instead just letting it fall off.

I had a few inquiries further to what we've discussed:
1) Is there any way that there is already a lien against me from these collections agencies going to court? Is there any way for me to find this out?
2) Is there anything I can do in the meantime to improve my credit? (Get a second credit card, etc.)
3) I am under the understanding that I cannot get a mortgage with amounts owing to collections like I have...is that correct? Will these just "dissapear" after the 7 years as if they were never there?
4) I am curious why the RBC VISA shows numerous chargeoffs as follows:

ROYAL BANK OF CANADA VISA

Account #: 4510********5284
Condition: [Derogatory]
Pay status: Bad debt/collection/skip
Opened: 02/01/2001
Reported: 10/01/2007
Responsibility: Individual account
Two Year Payment History: Legend >>
nov 90 Days Late
dec 120 Days Late
'06 120 Days Late
feb Coll Chargeoff
mar Unkown
apr Coll Chargeoff
may Coll Chargeoff
jun Coll Chargeoff
jul Coll Chargeoff
aug Coll Chargeoff
sep Coll Chargeoff
oct Coll Chargeoff
nov Coll Chargeoff
dec Coll Chargeoff
'07 Unkown
feb Coll Chargeoff
mar Unkown
apr Coll Chargeoff
may Coll Chargeoff
jun Coll Chargeoff
jul Unkown
aug Unkown
sep Coll Chargeoff

So when would this item fall off my credit report; Feb of 2012 or Sep of 2013??

Thanks again, everyone...you guys rock =)

Rickstarr is right about doing everything yourself. Credit repair companies are all a scam and they can do no more than you. But he's wrong in saying that if you make a payment on a delinquent account it will reset the credit bureau time clock back to 7 years.

Both Equifax and TransUnion go by the date of original default of the debt. Provincial legislation may use the term :"date of last payment," but the bureaus don't. By the way, collections are reported for 6 years in BC and Alberta from the date of FIRST default, not 7 years.

http://www.fcac-acfc.gc.ca/eng/publications/CreditReportScore/UCreditScore-eng.asp

If you make a payment on a debt in 2010 which went first went belly up in 2005, it still comes off your credit report in 2011. At least it's supposed to. Regretfully, collection agencies and debt buyers might put the wrong date on an account to keep it going. Or they can load up your credit file with hard inquiries contrary to bureau policy and/or provincial laws. Then you've got a problem.

Trying to get the bureaus to correct information is notoriously difficult. Even if you send them registered letters with account statements verifying the corrected information, likely nothing will get done as Footloose discovered. They merely claim "to have contacted the creditor and verified the information currently on file was accurate as is." Stop me if you haven't seen a gazillion of these letters.

In reality, nothing has been done because they get countless thousands of disputes every year, and so they handle them with a few templated forms to cover each category of complaint. The form letter you get back will be the same one thousands of others receive. Even if you send in 100 pages of documented proof, nobody will read them, and you'll still get back the same form letter.

Consumer letters are junk mail to them. The boilerplate responses merely serve the purpose of lamely maintaining the veneer they're following the provincial consumer protection acts.

The claim that everything on your credit report must be accurate, complete and verifiable or must be removed in 30 days exists only in theory.

The bureaus get thousands of bluff letters each year from consumers or so called credit repair outfits demanding they verify millions of bad debts found on countless credit reports. Consumers and credit repair outfits play this card because they think they can bamboozle their way out of bad debts being reported. The bureaus circumvent that tactic with form letter responses. Unfortunately, those with legitimate complaints get lumped in with them.

Effectively, we now have something worse than a reverse onus law. The consumer must prove their innocent, not the other way around. Even if the consumer can prove they are innocent, the bureau still won't give them a fair trial.

Next, you may, as so many others have, file a complaint with Comsumer Protection, True, they probably won't do much either, but you can get mediation and a hearing over the dispute. At least it forces the bureaus to read what you've submitted and take the appropriate action.

I wouldn't pay anybody a dime for help with this. You can (and would probably get faster results by doing so) do everything yourself.

With the RBC loan, the damage has already been done to your credit. Paying them the $10k won't change anything, and since it was 5 years ago you only have another 2 to go until that is legally required to drop off of your credit report. (Assuming you haven't paid anything to either RBC or a collection agency on their behalf). This debt has passed the Statute of Limitations on collection, thus RBC or a collection agency working on their behalf cannot take your to court over this debt and attempt to have your wages garnished. Period. This is important; no matter what any scumbag from a collection agency tells you, there is absolutely nothing they can harm you with (legally, anyways) in order to coerce you to pay them. If they bother you with phone calls, you can request that they only contact you via mail and they must oblige.

If they screw around with your credit report, ie: changing dates of last activity in order to keep the debt hanging around, report it immediately to TransUnion and/or Equifax. Document everything. This can be a pain in the ass but as long as you are persistent you will come out on top.

I would pay off collection account #1, "CBV COLL SVCS." since it is a small amount and the most recent date is only 2 years ago or so. This will be sticking around for another 7 years but it will look better if it is paid than if you were to wait another 5 years with it unpaid.

I'm not sure why accounts 3a and 3b are showing twice; this is something you should contact TransUnion about. You'll never get anywhere over the phone with them and you'll only ever get results via registered mail so that you have a paper trail you can use if necessary. Write a letter requesting that they remove the double entry on your report, and if possible try and back it up with any statement you can get from the collection agency outlining the debt. It is worth the money to send anything you ever send to anyone via registered mail as if you ever needed to go to court, you have proof of correspondence.

(Any time you correspond with TransUnion or Equifax, be sure to mention your SIN# and attach clear photocopies (preferably full colour if you can) of your driver's license or other piece of photo ID and your birth certificate or SIN card. They will sometimes weasel their way out of processing your request because they need proof of your identity and since each leg of correspondence can take weeks it will save you a lot of grief to always mention your SIN#, current address and phone number along with the attaching of photocopies of photo ID and birth certificate/SIN card.)

Anyways, since these accounts 3a & 3b (likely supposed to be reporting as one account, seems to be doubled) last date of activity was in 2005, you only have another 2 years to go for it as well so you're better off leaving it alone until it drops off. Any payment you make, even $0.01, will reset the clock for another 7 years and is the worst thing you could do. Remember, having to wait 2 more years plus not outlaying any cash, resulting in a clean credit report, is way more preferable than outlaying close to $3k to pay this off and having a blemish on your credit report for another 7 years.

Other than that, it isn't that bad. A score of 575 will rise eventually. I recommend waiting that RBC account out until it drops off your profile though because spending the $10k to pay it off will mean that it will remain on your report for 7 years as of the date of payment. Since you're 5 years in, it's best to wait the 2 years for it to drop off, keep the 10k towards your down payment and in the meantime continue to save more money towards your down payment. It sucks to hear that you will need to wait 2 more years, but it's the smartest thing to do from a financial point of view.

Now here are the Collection Accounts showing on my Transunion report:

Collection Accounts: Delinquent accounts sent for recovery

*** ACCOUNT #1 ***
CBV COLL SVCS.
Original Creditor: CBV FACTORED TELCO AB
Opened: 04/18/2008
Balance: 07/22/2010

Responsibility: Individual account
High Balance: $154
Balance: $265

*** ACCOUNT #2 ***
NOR-DON
Original Creditor: EPCOR
Opened: 04/20/2005
Condition: [Paid]

*** ACCOUNT #3a ***
GENERAL CRDT BC
Original Creditor: SOUTH RIDGE HOLDINGS
Opened: 01/09/2005
Balance: 04/17/2010
High Balance: $2375
Balance: $2375

*** ACCOUNT #3b ***
ACS 866-759-8027
Original Creditor: SOUTH RIDGE HOLDINGS
Opened: 01/09/2005
Balance: 06/18/2010
High Balance: $2375
Balance: $2375

....And that's a wrap.

So, basically I've read so many conflicting things (people telling me that it doesn't matter whether I settle the charged-off accounts, etc.). that I just want some solid advice to fix my credit to the point where I can obtain a mortgage, and I am willing and able to pay my debts at this point in life...so where should I begin? Is there a professional agency that I should be using for this?

Thanks for your time, everyone!

Hello all,

First time poster here. I'd like to start by saying thanks to anyone taking time to look at this thread and providing their much-needed insight. I am including nearly my full report here in hopes that someone can give me some advice, or direct me to a professional organization (I am willing to pay) to help me take steps improve my credit as quickly as possible.

Here's a summary of my situation:

- I went through a rough patch in 2003/2004, and did a lot of damage to my credit.
- I am now financially stable (approximately $70k annual salary) and looking to fix my past screw-ups and eventually buy a home.
- My Transunion score is currently 575.
- I have approximately $12,000 in my bank account to use towards my past debts.
- I got a Capital One guaranteed credit card in November of 2008, and have been trying to use that to rebuild my credit (never a late payment, always paid off the full balance by due date), however my score has not risen at all as a result of this.

Now, here are the full details from my Transunion report:

* Revolving Accounts *
*** ACCOUNT #1 ***
CAPITAL ONE BANK
Condition: [Open] , Balance: $1300
High Balance: $1800
Pay status: Paid as Agreed
Payment: $0 Monthly (due every month)
No lates ever, Payment History OK from Nov/08 until now.

*** ACCOUNT #2 ***
ROYAL BANK OF CANADA
Condition: [Derogatory]
Balance: $10100
Type: Revolving account
Pay status: Bad debt/collection/skip
Reported: 07/2005
Responsibility: Individual account

Remarks: Third Party Collection/Account Turned over to Collection Agency, Bad Debt Write Off
- Coll Chargeoff in July/2006 (This account was charged off and I have not paid them)

*** ACCOUNT #3 ***
MBNA CANADA BANK
Condition: [Derogatory]
Balance: 0
High Balance: $1500
Type: Revolving account
Pay status: Paid as Agreed

Opened: 03/01/2001
Reported: 10/10/2008
Remarks: Account Cancelled by Credit Grantor with Derogatory Rating
- This account I paid off to the collection agency in 2008

*** ACCOUNT #4 ***

ROYAL BANK OF CANADA VISA
Condition: [Derogatory]
Pay status: Bad debt/collection/skip
Payment: $0 Monthly (due every month)
Remarks: Settled/Arrangements made with Creditor
Account Cancelled by Credit Grantor with Derogatory Rating
- This account shows Charge Offs in several months from Mar/06 to Oct/07, not sure why it shows so many charge offs...

*Other Accounts*
- Nothing much here...I had good history with FIDO for my cellphone from Nov/08 until dec/10, and then Rogers until now.

(Continued on next post)