Legitimate Balance with LNVN On My Credit Report – How should I Proceed? ?

Question

Hi....

I requested an increase in my credit card limit but was not fully granted the requested amount.

The credit card company informed me that there is negative info in my credit report.

So I obtained a credit report and it indicted that there is a balance (about $180) with the collection agency LNVN funding. This balance has been bought from Belk, because Belk was indicated in the credit report.

I had an account with belk and it was closed last year. Somehow the above amount had remained in the account. I missed the reminders for payment by Belk because I moved overseas without leaving a forwarding address. (My mistake)

It was stated in the credit report, that Belk had sent five reminders until February 2008

I want to settle this debt with this collection agency immediately. But I found a lot of negative information about this company on the web. I haven’t called LNVN yet.

How should proceed with this matter. What should I say and do when I call LNVN

Please advice

Answer 1

Because this debt if fairly new, then this is one that LNVN can collect on.  They are notorious junk debt collectors, but this debt is not yet past your states SOL to seek civl action so you had better contact them and pay it off.

Pay only with a cashiers check or postal money order so you have a receipt.  Once paid this debt will show as a paid debt and will no longer be listed as a "derogatory" entry.

It will still remain on your report for 7 1/2yrs (this is from the date of last missed payment) as per Running of Reporting Period - Section 605 [15 U.S.C. § 1681c]

You can try to get a pay to delete and because it is a small amount they may do it.  If it were for a much larger amount and they knew they were within your states SOL, they would not do so.

If they agree to a pay for delete, get it in WRITING first!!!!!!

Hope this answers your question

LEGAL DISCLAIMER: The advice contained herein is for informational purposes only. It is not to be construed as Legal Counsel nor Legal Advice.

Answer 2

You should only settle with LNVN on the condition that the negative entry is remove from your report. It's called pay for delete. Belk have sold the debt and will not want to deal with you at this point. The debt will stay on your report for 7 yrs whether you pay it off or not. So you shouldn't pay it if you don't have a written agreement from the collection agency that they  will erase it from your report.

Answer 3

You'd be surprised at how many credit card companies and other lenders use junk debt buyers. These are the guys who are going to be the hardest to work with. I know someone who dealt with this collection agency. They did settle with him and his amount was much larger than yours. I would send written correspondence to them by registered or certified mail, so that you have some form of proof of communication. Since this is a small amount, I'd try to pay it in full, and go ahead and try for the pay for delete. But they don't have to do this.