by footloose » Thu Dec 16, 2010 11:38:59 AM
All tradelines remain on your credit report for a period of 6 years from the date of last activity. Once a tradeline is rated as R9, it will remain as such for 6 years from the final payment date. Any account rated as an R9 is treated identically as an account included in a consumer proposal or a bankruptcy. This can have a devastating effect on your credit score. For example, Fair Isaac Corporation, creator of the FICO score, which by the way is only available in Canada from Equifax gives an example on their website. If your credit score is 720 and you have an R9 on your report, it will drop your score from 140 to 180 points. That's DEADLY. Only time will improve your score. Even if a consumer has just one 30-day late payment resulting in a tradeline to go from an R1 to an R2 and a credit score of 720, will drop a credit score 60 to 80 points. Now you can see how vitally important it is to make all your payments ON TIME EVERY TIME even if it just the minimum payment.
As long as you are still making payments to TCR, there is no incentive for them to settle with you. If you want to make a settlement with TCR, stop making any further payments for at least 6 months. Of course, you will continue to receive those harrassing phone calls, but either don't answer the phone, or if you do answer the phone, once you determine that TCR is calling, hang up the phone immediately. In time, they will send you a letter to settle or you can contact them offering a settlement.
In order for a creditor to place a lien on your house, they first have to obtain a court judgement. If interest owing is the only outstanding amount, TCR won't take you to court. They will just continue to drive you "nuts". Remember, your credit score has already gone "south". Be patient. It will take some time before your score will recover.
Good Luck and have a GREAT DAY