Canadian Credit Repair - removal of collection item? - Canada

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RE: removal of collection item?

Postby TJ.brooks » Tue Sep 11, 2012 03:52:57 PM

How old is this debt,and when did you last make a payment?
What kind of debt is it, credit card,loan...makes a difference.
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RE: removal of collection item?

Postby TJ.brooks » Tue Sep 11, 2012 03:47:32 PM

How long did you pay on the debt with wrong name.
What about all the other info....address social ins # etc.

Don,t count on some loop hole.
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RE: removal of collection item?

Postby mrsadams » Tue Sep 11, 2012 03:01:14 PM

What if the name on the debt is spelled incorrectly does that matter?
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RE: removal of collection item?

Postby TJ.brooks » Tue Sep 11, 2012 02:16:00 PM

The whole point of a credit report is to accurately show your credit history.
If you pay off a debt a note will be attached indicating paid....but thats it.
TJ.brooks
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RE: removal of collection item?

Postby TJ.brooks » Tue Sep 11, 2012 02:10:15 PM

Regardless wethere you pay the debt off or not...it will remain on your credit report 6 years from the date of default.
Does not matter 15 dollars or 15000.
The only time item is removed is if you can show it is incorrect, a mistake.
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RE: removal of collection item?

Postby mrsadams » Tue Sep 11, 2012 02:01:59 PM

Hi i have been looking into clearing up my debt and my husbands as well. We are wanting to buy a home and such. Why we have debt is our own reasoning but anyways...looking at the bankrupcy canada website it says that..Get negative notes off your credit report

If you really owe money, you must pay off the debt before it will be removed from your credit report. In the case of an old, small debt, this can be easy and well worth the effort.

For example, if a creditor filed a negative report that you owe $15, repay the creditor and ask the creditor to remove the negative credit report from your credit record.

however they do not state how long it will take for it to be removed from your credit score. I hope this helps.

mrsadams
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RE: removal of collection item?

Postby mrsadams » Tue Sep 11, 2012 02:01:53 PM

Hi i have been looking into clearing up my debt and my husbands as well. We are wanting to buy a home and such. Why we have debt is our own reasoning but anyways...looking at the bankrupcy canada website it says that..Get negative notes off your credit report

If you really owe money, you must pay off the debt before it will be removed from your credit report. In the case of an old, small debt, this can be easy and well worth the effort.

For example, if a creditor filed a negative report that you owe $15, repay the creditor and ask the creditor to remove the negative credit report from your credit record.

however they do not state how long it will take for it to be removed from your credit score. I hope this helps.

mrsadams
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Posts: 3
Joined: Tue Sep 11, 2012 01:57:24 PM
Province: AB


RE: removal of collection item?

Postby dreemr13 » Tue Aug 02, 2011 10:33:41 AM

In 2001 I split up with my partner at the time who was a gambler and an alcoholic. We were locked into a year lease. I wanted to leave earlier than I did but couldn't because of the contract. One month before the lease expired I moved out, leaving my half of the last months rent, plus said to use my half of the damage deposit for cleaning and for her to move out. I also notified the realty property management I had left. About 6 months letter it showed up on my credit file that I had a bad debt from the realty company, who happened to also have their own in house collection department. I contacted them who confirmed I had left but that my ex had been evicted becuase she didn't pay the last months rent, plus there where expenses to remove belonging and cleaning. The difference from the damage deposit amount was $465. (Rent was $850) so I thought the amount was fair as technically they could have said more.

I contacted my ex and found out she went on a bender and put the rent in a VLT. F@CK! Was my words, but I was glad I had left.

So I write the creditor a letter and stated I had left and the reasons why, plus I included a copy of the cheque I had left my ex for my half the rent that she had cashed. I also said I wanted to pay the debt and would include an additional $300 as an administration fee to completely remove the debt for me. They replied yes and I paid them the following week.

Eventually they did take the debt off my credit file, but they didn't do it right away as for the agreement and I had to make several calls to get it done. It took almost 6 months for them to remove it after I paid and about a dozen calls.

Now, fast forward a few years to 2008 and I get married to my wife who was from Ireland and who did not yet have credit in Canada so everything was in my name and I had a 705 FICO score. We had started a business and both made good money under that business. However 8 months after we were married, she was killed walking across the street by a motorist who fled the scene. Later when he was caught we learned he had a history of Impaired Driving and drug use.

Anyway, because everything was under my credit I could find no one who help with covering the bills and eventually in Jan 2010 our van was repo'd and to try and save it I had gotten behind on phone and credit card bills which resulted in more interest, more fees and more debt. April 2010 I said the hell with it and just continued paying what I could so I didn't loose the business.

My credit score now is 419.

I did get a no-fault death benefit from the insurance company that just covered the cost of her burial and I have a lawyer as we are suing the driver but this process takes a long time and it's sad to say that the man that killed my wife, who only got a 1 year conditional sentence which ended October 2010 and he will be elligible for a pardon before my credit will recover.

Anyway, point of this story is that I finally got ahead so wanted to tackle some of the smaller debt on my credit files which included a CBV Collection for a Telus cell account for $280. I wrote them a letter and offered paying the full amount and a $200 administration fee to remove it from my files and they said no and that it was illegal to do so, but they would take the $280 and forget the interest and would update it as paid. However, as had_enough wrote, I don't want to take the chance that it will update the date of last activity and I am stuck with it for another 6 years...

Sorry for the novel, but nothing pisses me off more than the collectors on here that say if you would have paid your debt in the first place....everyone has circumstances and I know for me, I would pay off what I could if I knew it wasn't going to screw me over anyway.

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RE: removal of collection item?

Postby had_enough » Sat Jun 18, 2011 02:05:55 PM

Hi average_joe, thanks for the reply. I`ve considered that, but I don`t want to wait a year and a half to start rebuilding my credit because of this one collection item on my report nor do I want to wait for the backlog to clear from the Privacy Commissioner`s office.

I was looking at this web link of bankruptcy canada that says you can....part 4....... what do you think?

Kind of like "pay for delete" like they have in the US if part of the settlement....in writing of course.

Is that feasible here?

Are there credit reporting laws against the removal of an item if settled?
If I get a written letter for settlement saying they will remove it and they don`t, can I take it to the bureau for removal?

Can I sue? It`s a contract isn`t it?

http://www.bankruptcy-canada.ca/credit-repair/creditReport.htm

(< 4. Get negative notes off your credit report

If you really owe money, you must pay off the debt before it will be removed from your credit report. In the case of an old, small debt, this can be easy and well worth the effort.

For example, if a creditor filed a negative report that you owe $15, repay the creditor and ask the creditor to remove the negative credit report from your credit record.>)

I`m just concerned about restarting the date of last activity if they use that settlement offer against me. I even spoke with Mark Silverthorn to see if it could be done through a lawyer, and he has not heard of that happening. Said highly unlikely.

Here is an example of a pay for delete letter on-line. I know there some things that can`t be used in Canada (debt validation for instance);

Collector’s City, State Zip

Date:

Re: Account Number XXXX-XXXX-XXXX-XXXX

Dear Collection Manager:

This letter is in response to your [letter / call / credit report entry] on [date] related to the debt listed above. I wish to save us both some time and effort by settling this debt.

Please be aware that this is not an acknowledgment or acceptance of the debt, as I have not received any verification of the debt. Nor is this a promise to pay and is not a payment agreement unless you provide a response as detailed below.

I am aware that your company has the ability to report this debt to the credit bureaus as you deem necessary. Furthermore, you have the ability to change the listing since you are the information furnisher.

I am willing to pay [this debt in full / $XXX as settlement for this debt] in return for your agreement to remove all information regarding this debt from the credit reporting agencies within ten calendar days of payment. If you agree to the terms, I will send certified payment in the amount of $XXX payable to [Collection Agency] in exchange to have all information related to this debt removed from all of my credit files.

If you accept this offer, you also agree not to discuss the offer with any third-party, excluding the original creditor. If you accept the offer, please prepare a letter on your company letterhead agreeing to the terms. This letter should be signed by an authorized agent of [Collection Agency]. The letter will be treated as a contract and subject to the laws of my state.

As granted by the Fair Debt Collection Practices Act, I have the right to dispute this alleged debt. If I do not receive your postmarked response within 15 days, I will withdraw the offer and request full verification of this debt.

Please forward your agreement to the address listed above.

Sincerely,

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RE: removal of collection item?

Postby average_joe » Sat Jun 18, 2011 12:22:40 PM

If you’re not in a panic to settle; I would wait another year and let the item come off your credit file. The collection agency will not remove your item if you negotiate a settlement with them.

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