"In keeping silent about evil, in burying it so deep within us that no sign of it appears on the surface, we are implanting it, and it will rise up a thousand fold in the future. - Alexander Solzehnitsyn
I thought I would start my first post ever (and I mean first post on any forum ever) with the quote that Christine uses because it describes perfectly how I feel about my current situation. I’m so horribly ashamed (like I'm an "evildoer") about my past financial mistakes that I’m starting to think I’m a bad person although I know in my heart that I’m not. If I knew that a “credit report” would ever make me feel so absolutely hopeless about my future I never would have applied for any type of credit. I would like to preface the forthcoming factual information about my situation with the following: I feel like I have the weight of the world on my shoulders. It is extremely difficult for me to divulge the source of my shame to people I don’t know. However, I have to take steps to resolve these issues and after reading 100s of posts on this forum I thought this would be a step in the right direction. From here on out I will only give you facts, if you want to know how I got myself into this situation just post “how” and I will let you know.
I am 34-year-old new mother. I have been living outside the US for the last five years (7/96). Before moving abroad I lived in California and I plan on moving back in Jan 2002 (in about 3 months). I am currently unemployed but plan to work upon my return to the states. My credit is horrendous. I received a copy of my tri-merged report from Consumerinfo.com a few months ago. It was much worse than I thought and although my old bills are still unpaid collections I was surprised to see that 75% of my activity dates are wrong. The absolutely last time I ever made a payment on any bill was June 1996. Thus my last activity date on all accounts should be no later than July 1996, which would be the last time I was delinquent. Some of the accounts have dates as recent as July 2001. I know from studying the FCRA that this cannot be done. Basically, the collection agencies have pushed back not only my 7-year waiting period but also the SOL, which is 4 years for CA. To give you a crystal clear picture of my situation I have provided a chart of what my TU report says (this is the preferred credit report provider for where I will live so I am starting with them first). These are all listed as "coll/P&I" on my report.
Acct Name// Acnt Bal// Last Rptd// Past Due Amt// Last Delinquent
ABLE CREDIT $78 4/95 $78 4/95
AMER AGEN $1,564 12/00 NA 12/00
AMER AGEN $1,066 8/00 NA 8/00
AMEX 0 1/96 NA 9/94
COLDATA INC $5,128 7/01 $5,128 7/01
COLDATA INC $113 7/01 $113 7/01
COLDATA INC $13,375 7/01 $13,375 7/01
DC CREDIT SE $1,671 9/99 $1,671 9/99
GE CARD CO $77 5/99 $60 NA
MBNA $0 3/97 1/95
NORDSTROMS
ROBINSONS MAY $522 6/01 $522 6/96
SCE $157 12/96 $157 8/96
VW CREDIT INC $0 10/96 $0 7/96
WELLS FARGO $0 7/01 NA(1 30D LATE)
WELLS FARGO $2,908 3/00 7/96


The two big amounts with Coldata are from charges off with a MBNA credit card and a Well Fargo Bank credit card. These are all revolving accounts with the exception of two Pac Bell charge offs which are with American Agencies and the SCE. The VW credit is in regards to a leased car that I returned and they insisted that I owed them $700. As per the lease agreement I owed 0 but they put it on the report anyway.
Now that you know probably more than you want to about my situation I have the following questions.
1. Should I file BK, negotiate the debts or get the activity dates corrected and wait it out until the seven-year period is over and then have them deleted? Right now I have the means to pay only 10% of all outstanding bills. I would have to negotiate with the creditor myself because I can’t afford to pay a % to a third party. It seems stupid to file BK after all this time but I know it’s a option and just wanted some feedback. If I negotiate do I speak with the original creditor or the collection agencies?
2. I will be interviewing for jobs over $75,000 (FCRA section 605). What should I do if the prospective employer wants to check my credit??? This is my all time biggest fear; not finding employment because of my credit report. Soon I will be the sole financial provider for my son and I’m quite worried (panicked is more apt) that I won’t find a decent job because I have bad credit. What should I say if they want to check my credit?? What if they check without my knowledge, I know they aren’t supposed to do this but people do what they are not supposed to all the time.
3. I need to buy life insurance on myself in order to support my son if anything ever happens to me. I plan on buying a $300,000 25 yr term life policy. Will I be denied this because of my bad credit? FCRA section 605(a)(3) says they can check my credit if I apply for life ins over $150,000. Do people really get denied life insurance because of bad credit?
4. I hired Lexington Law Firm before I found this forum and read what was posted about them. So far they have been fairly prompt in answering my emails. They let me know when they sent out dispute letters and I responded by asking for copies of the letters for my file. In response to my request they said due to confidentiality they could not supply me with a copy of the letters. I told them since it was “my” credit report hiding behind the guise of confidentiality was a pathetic excuse for non-disclosure. I told them to let me know exactly whom the disputes were sent to, what section of the FCRA were they citing in the disputes, what accounts they were disputing and last but not least proof that they were actually sent. As of today I have not heard back from them but will keep you posted if I do. I’m actually thinking about firing them and hiring Christine. That is of course if she would want to take on a mess like this one.
5. I have opened a account with Netbank and plan to wire money into it once I move to the states. Will the activation of this account by the transfer of money alert the creditors thus resulting with them putting a lien on the account and basically taking the only money I have left? Since all the “last activity dates” on my report have been changed to dates within the last four years then the SOL in CA would give them the right to sue me. Is this true even if the dates are wrong??
6. Robinsons May started calling my mother at her house about 10 months ago asking for me and then bugging her to pay my collection account with them. After a couple of months of harassment she finally sent them a check for a lesser amount and the account is now shown as a paid collection. I just found out about this two months ago because my Mom didn’t want to tell me what was going on and stress me out during my pregnancy. I am absolutely raging with anger about this. There has to be some law against this type of harassment. I have no idea how they got my parents phone number and I can’t believe this type of behavior is acceptable or legal. How should I handle this and what recourse do have against them?
Well, I think that’s everything. I apologize for the length of this post but I thought is would be far more productive to get everything on the table in the first post rather than making a long thread because I didn’t provide the pertinent information. As this is my first post to any forum I hope I did the right thing.
Thank you for your time
Ashamed

Hon, there is nothing to be ashamed about. Many of us on this board have experienced the same feelings of disappointment and guilt. What you need to tell yourself is admit that you have made past mistakes, but you've learned from them and will not make those same errors again.

First things first, you're probably already going through a stressful time between the new baby, finding a new job, moving, and it sounds like, a separation. The last thing you probably want to worry about is repairing your credit. It takes time, preservance, and a little bit of luck, but it can be done.

The first step you need to take is pulling all three credit reports from the three bureaus Equifax, Experian, and TransUnion. They won't deal with disputes unless you are dealing from their report. Plus each credit bureau has different information on you; so all the accounts you've showing on the trimerged report may not show on each of the three bureaus reports.

Do you still have the lease agreement with VW? If the paper work you have says that the balance due is $0 this can be solved rather quickly with a validation to the creditor or a dispute to the credit bureau that is posting the incorrect information.

In a situation such as yours, I would not file BK only because the accounts (once corrected) are so close to falling off. Believe me ten years of bad credit is alot longer than 1-1/2 years of bad credit.

I would not fret about the job you want to apply for pulling your credit report until it occurs. Very few companies pull credit reports (sure there are some...usually federal jobs or a job/career in accounting or finance will), but the majority..nah. Most just want the option to. This should be stated clearly on the application or should be stated by the organization before applying. If they don't do this they could have one heck of a lawsuit on their hands.

Concerning the life insurance issue I would contact insurance companies in your area and ask what they request in applying for life insurance. Ask them if they pull a credit report. Most insurance companies pull credit reports as an excuse to assign those with blemished credit higher rates. I refuse to deal with any insurance company that requires pulling my credit report for any reason..auto, life, homeowners, etc. Vote with your feet and keep walking.

The creditors accounts can be sent a letter of validation (the collection agency/creditor needs to validate that this account is yours and that they are reporting accurate information). The burden of proof is on them, not you. Many don't have that type of documentation available. If they don't respond within 30 days they are required by law to remove the information off your credit reports. You can also, dispute with the three credit bureaus that are reporting the inaccurate information. They then have 30 days to contact the creditor to verify it. If the creditor does not contact them, the credit bureau (by law) is required to delete the account.

I don't know too much about validating and disputing, many on here can offer you better advice then I can. Just remember that we are behind you and are willing to help. Good luck.

Dani

Thanks Dani, and I agree that there's nothing to be ashamed of. Ashamed should sign up again with a NEW and much more positive user name.

Ashamed, YOU aren't the evildoer, it's the people/corporations reporting those CURRENT delinquency dates on your credit reports. Obviously you've done a lot of reading here and you already figured out what's wrong.

I guess you have some experience, since your profile says "plan to work in subprime mortgage biz upon arrival in CA."

The way things are looking in California, with all the layoffs and downsizing, LOTS of people need to get mortgages. You won't have a problem finding a job.

And there is absolutely NO need to file for bankruptcy at this point.

This is a common misconception. The SOL has NOTHING to do with the credit reporting. If any creditor wanted to sue you, they'd have to go to court and you would of course state that the SOL experied. They have to prove otherwise, and of course they can't.

Now, they COULD say that they couldn't find you (you were out of the country hiding from them,) but that's rather uncommon. I wouldn't worry about it. They probably don't even know that you were gone and would have to show that they tried to serve you. (I think ... this isn't legal advice, just what I read.)

No BK, no negotiations, but you DISPUTE.

Let's assume for all practical purposes that the SOL expired and your "only" problem is your credit.

Was the consumerinfo.com report before or after Lexington?

Since you want to work in the mortgage biz, I'm sure they'll run your credit - and inform you that they will.

I recommend that you answer any credit questions honestly. I know mortgage brokers who had no problem getting approved with wholesale lenders a few years after a Ch. 7.

Most likely your credit won't be so bad by the time you get here.

Sorry, I know NOTHING about life insurance.

I cannot BELIEVE that they won't give you the dispute letters! It makes me so mad, I should hire them for my own disputes just so I could sue them.

As far as hiring me, well, I do things a little different.

The first step is disputing with the bureaus and I don't bother with any FCRA quotes. Those people couldn't care less. I send out a cover letter listing EACH account and what's wrong with it and I include a copy of the report with the numbered, highlighted and annotated disputed accounts.

In your case that's mostly incorrect dates. Instead of correcting the dates, they often delete the accounts.

I always try to find a "real" objection and the creditors make it amazingly easy. If nothing else, a "not my account" works about 50% of the times with these old accounts.

I generally don't dispute a 2nd time with the bureaus UNLESS something changed (balance, etc.) or they FAILED to investigate. That happens a lot lately. My clients have the e-mailed dispute letters and can always print and send it again themselves, if that's what they want to do.

If any of the accounts with incorrect dates are verified, I fax or sometimes mail certified to the creditor/collection agency LEGAL DEPARTMENT. That's where I DO quote the FCRA, and the results vary.

I recently had BofA NOT respond to my certified mailing to their legal department, my client said he'd sue in small claims. He has an EXCELLENT case and all the documention to prove it.

Occasionally, I do both the CRA and creditor disputes simultaneously, it all depends on the urgency. And of course I snail mail a copy of EVERYTHING that went out to my clients so they CAN sue if incorrect accounts are verified and they have the documentation should deleted accounts reappear. Yes, that happens!

As I wrote above, no way! Before anyone can get your cash out of your bank account they have to have a judgment against you AND you have to have been notified of the that judgment.

I have some personal experience with that, as I STILL have not been able to collect my judgment against ARM Computer.

This is just sooo unbelievable! I'm not an expert on collections, but obviously numerous laws were violated, can you prove it?
Will your mother testify?

You're not even here to sue them, but at the very least you should be able to get this account off your credit. That would be one of those "legal department" letters if it's not deleted by the CRAs.

Summary

It's great that you posted all the details, that's what's necessary to get good advice. You were way too worried, I hope you feel better already. Nobody will attach liens on your bank account and your prospects for a job in the sub prime mortgage industry are excellent. You'll be all right.

It REALLY sucks that Lexington won't give you the copies of your disputes.

How can you sue the creditors or bureaus for FCRA violations when you don't have that documentation?

It irritates me SO much, I would do your credit reviews and CRA disputes free of charge in exchange for the opportunity to contact Lexington and finding out why they won't give you the copies of the disputes. And of course I'd like permission to post the results here. It's one of those things I find hard to believe unless I see it for myself.

I don't know where those "lawyers" are licensed, but I'd like to get them disbarred.

Dear Dani and Christine;
Thank you so much for your advice. It's good to know that my situation isn't totally hopeless and that there is an action plan that can be put into place. It will take a while not to feel guilt and shame about my dreaded "credit report" but those are emotional issues I need to confront on a daily basis. Actually, just doing something to resurrect my credit helps me feel better.
To start let me make one clarification about my future employment and then I will answer the questions you posted in your response. Most importantly, I have included copies of the email correspondence between myself and Lexington Law Firm. The emails are in regards to the dispute letters they sent to the CRA's on my behalf.
I. Future Employment Clarification
When I get back into the mortgage business I plan on being a wholesale account rep. with a sub-prime lender not a retail mortgage broker. Basically, I go to the mortgage brokers and try to get them to submit loans to my company. When loans are approved and completed then the company "bundles" them and sells them on the secondary market. I personally prefer the wholesale side of the biz to the retail side. Do you think they will still check my credit. I think they probably will but just wanted to know what you thought.
II. Questions

Quote:

1. Was the consumerinfo.com report before or after Lexington?

I bought my tri-merged online credit report before I contacted Lexington Law Firm. Seeing my report was all the motivation I needed to start searching the net for some help. Lexington seemed like the most professional and reasonably priced at the time.

Quote:

2. Robinsons-May Collection Account: This is just sooo unbelievable! I'm not an expert on collections, but obviously numerous laws were violated, can you prove it? Will your mother testify?

Yes, my Mom will testify. Is a copy of a cancelled check from her personal checking account enough proof? Should I sue them or just send the information to their legal department. I feel like I should sue so they never do this to anyone else. However, I don't know if I can sue them while I'm not in the states. Let me know what you think.

Quote:

3. Lexington Law Firm Disputes: How can you sue the creditors or bureaus for FCRA violations when you don't have that documentation? It irritates me SO much, I would do your credit reviews and CRA disputes free of charge in exchange for the opportunity to contact Lexington and finding out why they won't give you the copies of the disputes. And of course I'd like permission to post the results here. It's one of those things I find hard to believe unless I see it for myself.

Wow, what a nice offer. My immediate impulse is to say "Go for it!" but maybe you should read the email correspondence first.
Below you will find a string of emails between myself and Lexington Law Firm. The first email is Lexington's answer to my request for copies of the dispute letters they sent to the CRAs on my behalf . The remaining emails are posted in logical order. Christine, if your offer still stands after you have read the emails below let me know.

Email #1: Copy of email from Lexington Law Firm stating they cannot give me a copy of my dispute letters dated October 8th
Dear
Thank you for the email.
Due to the confidential nature of the dispute letters, and also due in part to the vast number of dispute letters we write on behalf of our clients, we cannot store copies of these letters. We simply send the originals to the credit bureaus.
When they receive your letters, and investigate our dispute, they will notify you by sending you updated reports. These updated reports will clearly list each of the items we disputed and they will indicate whether the accounts have been deleted, or verified to be accurate.
If you have any questions, please feel free to give me a call.
Have a great day!
Client Advocate
Lexington Law Firm
800-341-8441 ext 316
Fax (208) 485-9309
Email #2: My response dated October 9th
I understand if you do not want to send me a copy of the dispute letters in order to retain confidentiality however since it is my credit report I would like to know and have the right to know what are the grounds you are using for the disputes, which accounts are you disputing and why???
I have been studying the FCRA and it clearly states in Section 611 (a)(3)(A) that failure by consumer to provide sufficient information to investigate the disputed item will be considered frivolous and irrelevant. Therefore, I would like to know how your firm is going about the dipute process in order to avoid them using the above section of the FCRA to throw out my disputes.
I have also been studying my credit report carefully and the following are all things that should be disputed.
Last Activity Dates; As I stated in my cover letter I have not made ANY payments on my accounts since 6/96. Thus all of the collection accounts have the WRONG activity dates. I know my seven year clock starts from the last activity date but all the collection agencies have put erronous dates that will keep my seven year clock ticking forever. I know there was a recent lawsuit settled for the plantiff(consumer) against a collection company in Irvine, CA that did exactly what I am describing above. I think this is our best shot at deleting items.
Mailing Address; All three credit agencies have the wrong mailing address for me. At one point they changed it to my Miami address (mail forwarding service) but for some reason reverted back to my old addresses. I have no idea why they did this.
Past Due Amounts; Many of the accounts have the wrong past due amounts.
I'm sorry if I'm being a pain about this but this is VERY important to me. I hope the above information will help you. Please let me know what approach you are taking in my case, that's all I want to know. I would also like to know how bad is my credit report on a scale of 1 to 10 with others you have seen.
Thank you for your time.
Sincerely

Email #3: Lexington's response to email #2 dated October 11th
Thank you for your email! I can appreciate your concern and curiosity regarding the credit repair process, so I will do my best to answer your question.
Although there are several rules tied to credit reports and the FCRA, what we rely on is the rule that states when a consumer challenges an item as incorrect or somehow not belonging to them, the bureaus are required to verify the information with the creditor who is reporting that item. If the creditor does not respond within 30 days or responds that it is in error, the bureaus are required to delete the item from their report. It is also possible that the creditor will verify the item or change the status of the item in which case the bureaus are required to report the new information from the creditor.
Our dispute letters challenge the bureaus in this way, and we have found that by disputing only a few items at a time (up to 5 or 6 maximum) and waiting about 60 days between disputes, we have been able to please thousands of clients who like what has happened to their credit reports as a result of our service.
We give the bureaus the following information: client's name, address, social security number, and the names of the negative items as they appear on that bureaus report.
This process is simple but very effective, and although it takes time it is cost-effective.
If you have further questions, please email me.
Have a great weekend!
Warm regards,
Client Advocate
Lexington Law Firm
800-341-8441 ext 316
Fax (208) 485-9309
Email #4: My response to email #3 dated October 15th
Thanks for the response but you did not answer all my questions from the previous email. To make this easier I will number each question and you can reply to each one in CAPS below so you don't skip one.
1.I would like to know and have the right to know what are the grounds you are using for the disputes? Please SPECIFY the section number in the FCRA that you are using for your disputes.
2.Which accounts are you disputing and WHY did you choose these accounts first? I emailed you and told which accounts to dispute first. Were these the ones you disputed first?
3. What proof do I have that you actually sent out the diputes to all three CRA's?
4.Billing; What was the date you charged the credit card I gave you for the retainer and what is the EXACT date you will charge the card each month. I will assume that the FIRST $35 dollar charge was not billed until OCTOBER since you didn't receive my credit reports until OCTOBER 5th. Please confirm this information.
5. Since ALL the last activity date on my report are WRONG (in regards to collection accounts) can you please send disputes to ALL of the accounts using section 603 of the FCRA.
6. I have been doing a lot of investigating about Lexington Law Firm and I hate to tell you this but it has a horrible reputation on a lot of credit forum boards. I was planning on posting to them to let them know that my experience thus far has been satisfactory but this reluctance to give me all the specifics about my case is worrisome. When it comes to MY CREDIT REPORT I have the right to know EVERY DETAIL about exactly what Lexington Law Firm is doing on my behalf. If you can't do this then I would have to end our working relationship.
Thank you for your time and understanding
Email #5: Lexington's response to email #4 dated October 17th
Thank you for the email. If it is ok I am going to respond to your individual questions by numbering them also.
1. You asked what are the grounds we are using to dispute. In the FCRA under section 611 the entire sections tells you about disputing the information on your credit reports. We send letters telling the credit bureaus that the information may not be verifiable or accurate and they need to investigate, so
they investigate.
2. You asked which accounts we disputed and why? We dispute all the negative accounts on your credit reports, however not all at once, we dispute 1/3 of the items up to 6 at a time. So, we usually start with the "worst" items on the report, or the most negative. We disputed COLDATA, Wells Fargo, Gulf State,
Able Credit, and American Agencies. Now the items are not the same on each report so we dispute differently on each report each time. You will know what was disputed when you receive the results back about 60 days from the time the dispute letters we sent, which was 10-05-2001. If there are certain items that
you want disputed the best way for you to give us that information is to highlight these items on your credit reports that you send into us.
3. You asked what proof you have that we sent dispute letters?
You will know we sent dispute letters out, because you will get the results back. The updated credit reports will come to you directly.
4. Payment date- Your payments are set up for the 9th of each month. Your first $35.00 payment was on 10-09-2001.
5. You asked if we can send dispute letters to all of the accounts. We will dispute all the negative items on your credit reports, however not at the same time. We will continue to dispute the negative times items on your credit reports about every 60 days as we continue to updated credit reports from you.
6. I am happy to go over every detail with you about your case and what we do. However, without being able to contact you by phone it can make it some what difficult. I ask that if you are unclear about anything we do and what is going on with you case, please give me a call or send me an email, I am happy to explain anything we do. As for the people that are not happy with our service, we are constantly looking at ways to improve our service for our clients. We also always work with our clients to create win win situations. I thank you for the feedback and information on ways that I can improve your knowledge and our relationship.
Please contact me and let me know any way I can assist you with your credit repair journey.
Thank you,
Client Advocate
Lexington Law Firm
800-341-8441 ext 316
Fax (208) 485-9309
CC: Victor Lawrence, Esq.
===================
REMINDER:
When you send us your credit reports, please be aware that if you do not mark any of the items on your reports, we will understand that you are indicating that all of the negative items are to be disputed with the credit bureaus.
If you have negative items on your reports you know to be verifiable, you may choose to highlight only the accounts that you would like us to dispute. In this case we will dispute only the highlighted items.
You may select one, or all of the negative items on your reports, but again, if you do not indicate to us which items are to be disputed, Lexington Law Firm will understand this to mean that all negative items on your credit report are to be disputed.

End of Emails
I have not responded to this last email yet. It's funny that she says in the last email that it's difficult to go over the details of my case if we can't speak by phone since I was "beyond" clear about where I live and how important it was for me to do everything by email right from the beginning. Maybe she forgot. Anyway, I wanted to get some feedback from this forum before sending them a response. I was quite impressed by the throughness of the last email although it did take some prodding to get them(Lexington) to be more specific.
Well I know this is a lot of info but I thought it could also serve as a good "case study" for everyone on this forum.
Thank you again for everything
Ashamed
p.s. I'm trying to think of a new name....I promise to change it soon.

Ok, back to you, uhm, I'm not even going to type that nick! Get a new one

1) Your future employment as a wholesale rep.

I really don't know, but suppose they will run a credit check. Again, just be upfront and honest about it. There are very few people who've never had any credit problems, and with some luck, your credit might look a lot better in a couple of months.


2) The Robinsons-May Collection

I think you should write up a statement by your mother as to what exactly happened. Try to be as specific as you can with dates and number of times they called.

Then you could do a number of things:

a) Send them a Planetfeedback.com letter and ask why they did that and whether they don't agree that they violated collection laws. HOW could they harrass your MOTHER?

They probably won't respond, but you never know. I consider Planetfeedback.com informal "discovery."

b) Post at elance to see what a lawyer would charge. I just did that and yes, I get the idiots trying to sell me the legal plans, but I also found a lawyer to attempt to collect my ARM Computer judgment.

c) Post at classactionamerica.com to see if you can find someone else who had the same problem. A class action would be nice.

d) You can file some complaints with regulatory agencies - of course that's not very productive but it can't hurt.

e) If you got the money, you could just go out and hire a lawyer, but I still wouldn't know how you'd find a good one.

f) And of course post a new topic with the summary here and at other consumer/credit boards. I'm NOT an expert on collection laws, but some other people might have suggestions too.

Obviously you can do all of the above at simultaneously. In order to really have an impact on their collection practices you'd have to get a BIG judgment against them, but bad publicity also hurts.

Once you have the summary on the computer ready to be copied and pasted, it doesn't take much time to send off the complaints and postings.

3) Lexington, thank you SO much for posting your correspondence.

That is just totally mind boggling. A law firm does NOT keep the correspondence they send out for their clients? How can that be?

I find it hard to believe that this is LEGAL!

I also had NO idea that all they do is SPAM disputes.

I'll start a separate topic on Lexington.

It takes people like you, willing to share how they get ripped off and abused to CHANGE how these people do business. And if we can't change it, at the very least we can put the word out and warn their potential customers.

I'll be very happy to do your credit reviews and bureau disputes free of charge.

The first thing we need is your current reports. I'd prefer the individual bureau disputes, but don't know how you can get your TU. Do they mail to Costa Rica? Do you have an address here that you're using?

You could also get another tri-merged, it's better than nothing. And maybe you can get Experian and Equifax on-line. Please E-mail me at bayhouse1@hotmail.com and we'll take it from there.

Dear Ashamed, As a survivor of the credit and financial wars I would like to pass on some experiences that might help a young mother facing lifes perils.

As an individual you credit will most probably impact your ability to borrow for some time. But if you were to become a Family LImited Partnership (you be the general partner) and simply get two or three trade accounts in the name of the partnership you will be amazed at the people wanting to give the partership credit.

JUst start with a local office supplier. (not a national chain that requires a credit ap) just a mom and pop. Be frequent and ask them for terms for short durations. For instance, you spend or visit their store two or three times a week. Soon they recognize you. Soon they trust you. Soon you buy something and ask them if they will accept a down payment and maybe two or three post dated checks. Soon you have their endorsement for credit.

NOw you are an entity with an entitie's credit. Now you can expand that credit profile. When someone asks for your social security number you refuse. You simply give them trade accounts (such as the mom and pop) and your company FEI or state registration number.

The upside is whatever you accumulate, it beocme difficult for past creditors to haunt you. In the meantime you take your time dealing with your credit history. I agree with the other suggestions. I advise my clients that if they owe over three times their annual gross income the might consider bankruptcy.

A quick peek at your letter shows about $25,000 owed. Let me tell you a life story. When I owed $300,000 grand my wife would say to me "how in the hell can you sleep so well, when you owe that much money"? I answered "honey, who do you think is more worried about whether or not I pay? I think the bank really worries and therefore they should check with me everynight to make sure I feel good, don't need anything and that I can get up in the morning, go out make a buck and perhaps pay them back"

Believe me young lady, lose your fear of creditors. Get up to speed on law regarding consumers rights. (it appears your doing that now). Contact each and everyone according to the manner in which Christine laid out. Make a deal without committing any signature. Do not start the seven year clock without a lot of thought.

Many companies love to have old debt reconfirmed. This takes files out of the bottom of the drawer(from write off) and puts them into current receivables. Smart business. Use their greed and ego to your benefit.

Good luck in your employment. Simply tell the company that you are a general partner in a limited partnership and perhaps you can negotiate an employment contract or vendor contract.

Good luck

Regis

Moved Kermie's collection and jugment questions to

Judgments, collections - settle? wait them out? PAYING does not increase credit scores

I just wanted to update everyone on my current situation. First, I would like to thank Regis for taking the time to respond to my post and for the personal stories you shared. You have no idea how it helps to hear other peoples stories. Thank you for sharing your experiences and obvious wisdom with me and the others on this board.
In regards to credit repair companies, I would urge everyone in this forum NOT to use Lexington Law Firm. They are totally inept. Following you will find four emails between myself and Lexington that went back and forth today in regards to my request to cancel my account and my request for a full refund. After reading my first email you will have an update of my situation and the remaining emails will just validate my claim that Lexington is inept.
I also want to let everyone know that Bayhouse and particularly Christine Baker are hands down the best source of information about credit issues on the Web. Christine has been an amazing help to me not only with her expansive knowledge of the FCRA, consumer rights and the dispute process but also with her understanding and encouragment. We should all thank her and support Bayhouse as much as possible.

Email sent to Lexington today asking for refund and cancellation of my account
Dear ;
Please cancel my account with Lexington Law Firm and refund my credit card in the amount of $110.00 ($75 retainer/$35 monthly fee) immediately.
Following are my reasons for canceling and demanding a refund.
1. Failure to safeguard legal documentation on your client’s behalf:
You will not give me a copy of my dispute letters and as you stated in your email dated October 9th your firm does not keep any dispute letters on file.
“Due to the confidential nature of the dispute letters, and also due in part to the vast number of dispute letters we write on behalf of our clients, we cannot store copies of these letters. We simply send the originals to the credit bureaus.” Email quote from Lexington Law Firm on October 9th, 2001
How can a law firm not keep a copy of legal documents sent to the CRA’s on the client’s behalf? Those letters are the only recourse your clients have to take the CRA’s to court if they refuse to delete the disputed items that are misreported on credit reports. If the CRA’s refuse to delete or update misinformation, I need those dispute letters to serve as proof that I followed the correct procedures in my attempt to rectify my credit report and that the CRA failed to respond. How can I possibly do that if I do not have copies of the dispute letters to show a judge? All law firms are required by law to safeguard documentation they send on their client’s behalf. Your firm is in violation of that law.
2. Failure to follow client’s instructions:
I told you specifically what accounts to dispute and you verified that in your email dated October 17th
“We disputed COLDATA, Wells Fargo, Gulf State, Able Credit, and American Agencies.” Email quote from Lexington Law Firm on October 17th, 2001
I decided to follow up on my disputes by ordering my online reports from Experian and Equifax. On my Equifax report you failed to dispute my two collection accounts with Coldata. The only accounts you disputed were Gulf State, American Agencies, and two Wells Fargo accounts, one of which was not derogatory in the first place. The only reason why you would tell me you disputed my Coldata accounts and actually did nothing is that your firm wants to drag this on as long as possible in order to collect monthly fees.
3. Negligence in the dispute process:
As stated above, I ordered my online reports to follow up on your work in regards to the disputes you sent on my behalf. I also discovered that on my Experian report you disputed 3 Wells Fargo accounts that had a perfectly good rating. One was an auto loan that was paid and never late, the second was a credit card that shows “pays as agreed” and the third was a $35,000 line of credit that was pays as agreed. Your negligence to actually check and verify what you were disputing has resulted with your firm disputing the few accounts that actually make my credit report look good. If these positive items are deleted due to your ineptness I will expect you to take full responsibility and have the items restated on my report.
I will wait for your confirmation of my cancellation and my FULL refund of $110 until 5:00 p.m. central standard time on Thursday, November 1st. If I don’t receive confirmation that my credit card has been refunded in the amount of $110 and my account has been cancelled I will do the following:
1. I will contact my credit card company immediately to stop all future charges from your company on my credit card. I will also dispute your previous charges and have them charge back your fees since you have failed to provide competent legal service and possibly made my situation much worse by disputing three good accounts.
2. I will file a complaint with all the information above to the State Board of Utah.
3. I will file a complaint with the FTC
4. I will go to every credit forum board and post this letter and all the correspondence sent to me by your company that proves you have been negligent and dishonest.
I expect a confirmation of my refund and cancellation of my account no later than Thursday November 1st by 5:00 p.m.
Sincerely,

Lexington's response to my email
We have closed your account and all future payments have been deleted. Your confirmation number is 160372. I have closed your case and I can go ahead and refund you the $35.00 fee that you paid since apparently you are upset about the process that we do. However, I am unable to refund the $75.00 retainer fee, as
the retainer states, it is a nonrefundable set up fee.
If you have any other questions concerning your account please contact me at 800-341-8441 ext. 316.
Thank you
Advocate Team
Lexington Law firm

My response to Lexington's email above
Dear
We can either do this the hard way or the easy way; it’s up to you. As I stated in my previous email I expect no less than a full refund in the amount of $110 from Lexington Law Firm. If not I will contact my credit card company and dispute your charges; I have more than enough evidence to warrant a chargeback to your firm.
I “retained” your firm to help me dispute erroneous information on my credit report NOT to lie, deceive and make my situation worse by disputing perfectly good accounts. Your ineptness, negligence and dishonesty in handling my case has made my situation worse now than when I started working with your company. I expect your confirmation of my full refund by the end of business hours today. If I do not receive a full refund I will also file complaints with the State Board of Utah, the Federal Trade Commission and the Better Business Bureau of Salt Lake City.
Sincerely

Lexington's final response
Thank you for the email. I reviewed your case and went over your email and I will go ahead and refund the $35.00 fee and the $75.00 retainer for a total of $110.00. I will send the request to our accounting department today, it will take about 7-10 to be credited back to your credit card. If you have any other questions please feel free to contact me.
Thank you,
Client Advocate
Lexington Law Firm
800-341-8441 ext 316
Fax (208) 485-9309CC: Victor Lawrence, Esq.

I'll let you know if they actually keep their word and refund the credit card. I will also update you again when I receive answers to my disputes
Thanks again everyone for all your help

WOW! Good for you!!!

You still have to change your nick

I'm going to copy your posting to the Lexington thread too.

I truly think they should be shut down.

Thanks so much for posting the gruesome details. You are really good at complaining, I like your style. Detailed, yet concise, no BS. And it worked!

I know it took you a long time to WRITE, but I also know that most likely you would have spent MORE time if you had tried to call AND you probably would never get a refund - only verbal promises.

You could take your e-mails into any court and they would perfectly explain to just about any judge what happened.

This is how everybody should handle their disputes:

In writing, without 4 letter words and to the point.

I also learned something:

I didn't know that a retainer could be non refundable. I thought it was like a deposit, retained by the lawyer for work to be done.

Had a client in California once who filed a complaint against her attorney for failing to account for the disbursements of her retainer. The retainer had to be deposited into a trust account and the lawyer could only remove funds for the hours she worked or other expenses on the clients behalf.

That "retainer" should be called a setup fee. Not a day goes by when I don't learn something new!