American Consumer Groups
You will be surprised how many FCRA and FDCPA violations are committed every day by many collection agencies. Never talk to a collection agency by telephone. Conducting discussions via written form is better because you have proof. Fact: Paying a collection account will not improve your score. As far as credit scores go, a bill paid is the same as a pending. Your official credit score is called a FICO score. It takes into account many things such as: Age of overall credit available. Number of accounts in good standing.
Number of delinquent accounts. Negative items: liens, bankruptcies, liens, etc. since the establishment of time the negative element. Amount of credit in use (use). New account for less than six months old (which hurt your credit). Number of hits hard.
Generally, mortgage lenders will require delinquent accounts be cured but it will not improve your score. Myth: You must pay any bill that comes to your home to a collection agency. Under the law you have the right to challenge the legitimacy of any bill sent to you, “is called validation. By sending a validation letter to a collection agency that must, by law, cease all collection activities until they can validate the debt. It is important to note that the word is validation and verification does not mean two completely different things. Validation means they must be tested that the bill is yours, which is not simply an invoice sent to you. Until that is done well, can not report the item in your credit report, ask for money or do something that can be considered more collection activity. Is that anyway? Yes they do. It is therefore important to know the law, which is on your side. It is vital that you check your credit report as often as most people have erroneous data in them. Do not assume that everything works as it should, since it almost never does. Nobody is going to be looking out for your credit identity but you. Credit standing has never been more necessary than it is today. Almost everything we do in the life of a job application to reserve a hotel room has something to do with our creditworthiness. American Consumer Group, a nonprofit organization, has created a site with all the information listed in this article.
