Cw nexus collections

A collection account will lower your credit score and can generally stay on your credit report for up to seven years. Often, a collection entry will even keep you from getting a mortgage or auto loan.

To be clear, you can pay a collection and still have it show on your credit report. The credit reporting bureaus can just change the account to a “paid collection.”

Fortunately, it is possible to remove collections from your credit report.

Here are 4 ways to remove collections from your credit report, improve your score, and restore your borrowing power:

1. Request a Goodwill Deletion – If You Have Paid The Debt

The first step, if you have paid the collection account, or have been making regular on-time payments, is to mail the collection agency a “goodwill letter” that explains your situation.

Don’t go into too many details, but let the debt collector know if you’re trying to buy a house but can’t because of the negative information on your credit report.

Then kindly ask the debt collector to remove collections from your credit report out of goodwill.

With some newer scoring models of FICO and VantageScore, they ignore a collection marked as “paid”, though many lenders still utilize older formulas that will still weigh a paid collection account against you.

If this sounds overwhelming, you might want to reach out to a credit expert.
It costs some money but is less expensive than you might think
considering you are getting your own lawyer to fight on your behalf.

Talk to Lex Law

2. Dispute the Collection – If You Found An Error

If the goodwill letter falls flat and the debt collection remains on your credit report, it’s time for a more advanced method.

For this, you will need a current copy of your credit report. TransUnion, Experian, and Equifax provide you with a free credit report once a year.

Once you have your credit reports in hand (or on-screen), find the negative item you’d like removed and check it out closely.

Confirm all the details and if you see anything inaccurate, report the inaccurate information to the major credit reporting agencies.

The Fair Credit Reporting Act or FCRA requires credit reporting agencies to show only accurate information in your credit history.

If you can find inaccurate information, the credit bureau will have to fix the information. Though, if it can’t fix the errors, the bureau should remove the collections from your credit report.

This method can work because, rather than simply disputing the entire entry, you are going to write an advanced dispute letter that lists especially what is inaccurate.

Using this letter, you will insist that each piece of information is corrected or that the collection be removed.

This makes it more difficult for the credit agencies to verify the collection and hopefully result in them simply removing the collection altogether.

ITEMS ON THE COLLECTION ENTRY TO CHECK FOR INACCURACIES:

• Balance
• Account number
• Date opened / Date closed (check all dates)
• Account status (e.g., Closed)
• Payment status (e.g., Collection)
• Payment history
• Delinquency date
• Credit limit
• High balance
• Anything else that appears to be inaccurate

3. Ask the Collection Agency to Validate the Debt

If you can’t find inaccuracies on your credit reports, write to the collection agency and ask it to validate your debt.

Under section 809 of The Fair Debt Collection Practices Act, collection agencies are required to validate debts they are attempting to collect, if you request that they do so.

The main issue here is that you have only 30 days to make the request after the collection agency first contacts you.

If they are unable to validate the debt, you can ask them to remove it from your credit report.

4. Negotiate a Pay-for-Delete Agreement

When your original creditor can’t collect your past-due balance, it’ll sell your debt to a debt collection agency which means you now owe the money to the agency.

But when the agency buys your debt, it doesn’t pay the full amount. It may pay only a fraction of what you owed on your original debt.

If the collection agency can get you to pay off the debt, it makes a profit. As a result, you could leverage a payment in your negotiations.

Had I tried this instead of just paying off my old Sprint balance, it may have saved me a lot of trouble.

HOW TO NEGOTIATE A PAY-FOR-DELETE AGREEMENT

You offer to pay part of your balance due in exchange for getting all negative information related to the debt off your credit report.

Offer to pay 30 percent of old debt, for example.

For this to work, you have to get this agreement in writing. An agreement over the phone won’t hold up.

You could do your part and pay the agreed-upon amount only to learn the agent you spoke with didn’t make a record of the deal.

Now, if you owe $30,000 on an old credit card charge-off, you’d have a hard time coming up with a lump sum so large. Even 30 percent would still be $9,000.

But this pay-for-delete strategy can help when you can afford to make a payment.

Late payments can be reported separately even though it’s associated with the same debt.

Though, if you negotiate with your creditors to get a collection account removed, be sure all the negative data goes away.

Have a Professional Remove Collections From Your Credit Report

If this all seems like too much for you to handle, and you are worried about trying to take on a collection agency on your own, there’s an entire industry devoted to credit repair that is ready to help you.

A professional credit repair company like Lexington Law could help restore your credit — usually within three or four months.

They won’t take any action you couldn’t take yourself. Since credit repair is all they do, it’ll work faster and more efficiently.

You would need to budget some money for the monthly payments, which average about $100 depending on the plan you choose.

There’s also a one-time set-up fee for most credit repair companies.

But if you want to get your personal finances back on track without spending your free time on the phone or writing letters, you should consider this kind of service provider.

What You Need to Know About Debt Collections

Debt collections come in many forms.

Whether it’s an unpaid medical bill, a cell phone bill, or even an $18 library book you never returned, unpaid debt can lead to negative information on your credit report.

It looks especially bad when the negative item comes from a collection agency.

Collections accounts tell other creditors you let an old debt go three or maybe even six months without paying.

When you apply for new credit, lenders know your old lenders lost money on your accounts.

So a collection account will have a negative impact on your ability to apply for new credit — whether it’s a mortgage, a major credit card, or a personal loan.

Original Creditor Vs. Collection Agency

Sometimes the same debt can appear twice on your credit report, which can multiply its negative impact.

For example, this can happen when the original creditor sells the debt to a collection agency, which then reports the same debt to the major credit bureaus.

When you’re struggling to make on-time payments, try to resolve the debt before it goes into collections, if possible.

Many lenders have relief programs, flexible payment options, or even programs allowing you to skip a payment.

If you’re already being contacted by a debt collector, it’s too late to fix the problems with your original creditor.

But you can still resolve the issue using one or more of the options above.

FAQs

How Does A Collection Affect Your Credit Score?

Once a debt turns into a collection account and gets logged on your credit report, you will see a significant drop in your credit score.

If you didn’t have any other negative items on your credit report, this drop could be north of 100 points.

How far your credit score falls largely depends on how bad it was, to begin with.

In other words, a single collection account won’t be a huge deal to someone who already has multiple delinquent accounts and a consistent string of late or missed payments, even on their up-to-date accounts. This person already had bad credit.

But if you’ve established a long history of making on-time payments, keeping a healthy credit utilization ratio, and maintaining a blend of different types of credit, a collection account will make a huge negative mark.

As the collection account ages, its impact on your credit score will lessen. But this won’t help if you need new credit this month.

How Long Does a Collection Stay on Your Credit Report?

Unfortunately, unpaid collections and paid collections remain on your credit report for seven years.

Over time, the negative impact of your collection account will diminish.

After a few years, you may be able to get an auto loan, credit card, or mortgage again, but the best interest rates go to the best-qualified borrowers.

You could save thousands by getting the collection account removed and fixing your bad credit as soon as possible.

When You Pay A Collection Account Will It Be Removed From Your Credit Report?

A lot of people think paying a collection will automatically remove it from their credit report, like my old Sprint bill.

It’s important to know the collection won’t be removed from your credit report even if you pay it off.

It’ll just be relabeled as a paid collection instead of an unpaid collection.

New lenders will still see the collection account when they pull your credit report.

Even if you do get approved for a loan, you’ll likely pay a higher interest rate.

Read more above on how to get a paid collection off of your credit report.

Are Medical Collections Different?

For years, medical collections were treated the same as all other collections.

But FICO has updated its scoring to treat medical collections differently. Medical collections now carry less weight when your credit score is calculated.

The newest FICO scoring model puts even less emphasis on medical debt.

Again, this doesn’t mean a medical collection won’t affect your ability to get a loan. Lenders don’t just look at your credit score to make their loan decisions.

They usually pull your entire credit report and notice your past negative items. This, in turn, will affect your approval as well as the interest rate.

This is especially true when you’re applying for a mortgage.

How Do I Get A Copy of My Credit Report?

Through April of 2021, you can get a free credit report every week because of the Covid-19 pandemic.

Visit annualcreditreport.com to get your free credit report.

How To Remove Specific Collection Agencies From Your Credit Report

Duplicate Accounts CA Reporting Me Late Every Month w/12 Charge-Offs

I am in really bad need of some advice on what to do with two accounts showing up on all 3 credit reports. I realize I made a mistake and somehow I need to fix it but I don’t think I deserve what this place is doing. The two accounts are duplicate accounts and are the same credit card account, but it is not showing that way according to all 3 credit report agencies.

In 2019, I was going to be away for 3 months for some important medical treatments and I knew that I would not be able to take care of my payments during this time, so I set up automatic payments from inside my checking account and paid them their payments that way.  I had always made my payments on time so I was surprised when they closed my account.  My bank said that the payments should have been delivered by the due date, but Merrick Bank said that they were late by two days all three months. So they charged me a late charge of $39, three months in a row and then closed my account by the time I could get a hold of them. 

Once the account closed, they turned it into a collection agency right away. But now on all three credit reports, it is listed from the credit card company as well as the collection agency and makes it look like I owe $2444 between the two.  The card was not maxed out and they inflated the balance big time.

What’s worse, is the collection agency somehow updates it as a late payment every month and I get an alert from my credit monitoring website saying that I have a new late payment.  The collection agency is also listed as 12 charge-offs.

I realize that what is done is done and there’s not much I can do about it. I am planning on paying this off in the next 6-12 months, but in the meantime, I do not think it’s fair that it is listed in duplicate and that the collection agency continues to update it as late every month. It is hurting my credit score considerably because it is renewed as a new late payment every month, as well as two separate accounts.

Are they allowed to do this or should it just be listed as one account instead of having it on there in duplication?  Can anyone please tell me how I can possibly go about fixing it so that only one account is listed on my report correctly? It seems like something like this should be illegal or be against FCRA rules. I am also surprised that they are able to list it as 12 charge-offs!  Unbelievable.

Merrick Bank listed me for a bunch of late payments in 2019, but stopped then.  CWS/CW NEXUS has continued to list me as late every month and just listed a new late payment for August 2020.

The info from the accounts is copied below. The first one is the credit card company, Merrick Bank. The second one is the collection agency, CWS/CW NEXUS.  Merrick Bank will not talk to me whatsoever on the phone and will transfer me to the CWS/CW NEXUS if I get through to a live person.  The collection agency called me once in the beginning, and the representative was as surprised as I was and I have never received any more calls from them since.

My credit is otherwise very good and I have around 20 accounts all reporting good payment history except for this company reporting every month as late with 12 charge-offs.  I apologize in advance for the long read, but I wanted to make sure I had the correct information in the post.  Thanks for any help!

Credit Card Company:

MERRICK BANK CORP $1,262
Closed
1 charge-off
Account Info
Account status Closed
Date opened Jun 02, 2015
Account type Credit Card - Revolving Terms
Balance on Jul 31, 2019 $1,262
Credit Limit $950
Payment Info
Status Charge-off
Status date Jul 2019
Past due amount $427
Highest balance -
Monthly payment -


Collection Agency:

CWS/CW NEXUS $1,182
Closed
12 charge-offs

Account Info
Account status Closed
Date opened Jun 02, 2015
Account type Credit Card - Revolving Terms
Balance on Aug 01, 2020  $1,182
Credit Limit $950
Payment Info
Status Charge-off
Status date Aug 2019
Past due amount $1,182
Balance on Aug 01, 2020 $1,182
Credit Limit $950

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Citi Too Many Inquiries CLI Denial — Are they being completely transparent?

I've got Citi AA Miles card from 2019 still with same credit limit I opened with.  Denied again for CLI, reason given was:


However, I wonder if that is the full story since they have BK loss with me that is off my credit reports now?  Are they obligated to cite that in their reasons if part of their decision making process?

My inquiries on Equifax they referred to:

Feb 17, 2021 PENTAGON FCU (Denied CLI, max exposure) Feb 17, 2021 DIGITAL FEDERAL CREDIT UN (Denied card) Dec 29, 2020 CORELOGIC CREDCO CORELOGIC for BACHOMELOANSECOMMDMA (Mortgage approved) Apr 20, 2020 CREDCO/QUICKEN CREDCO/QUICKEN for QUICKEN LOANS INC Mar 07, 2020 PENTAGON FCU (Approved CLI) Mar 07, 2020 DIGITAL FEDERAL CREDIT UN (Denied card) Feb 24, 2020 CITIBANK NA CITIBANK NA (Prior Citi CLI that was denied)  
Experian FICO: 827 (From Wells Fargo Bank)
TransUnion FICO: 824 (From Barclays Bank)
Equifax FICO: 770 (From DCU older version of score)

Thoughts?