Why do some deleted items show up again?  This is probably the one biggest problem that most people experience with Credit Repair Firms.

Utility Bills have a different set of rules than other consumer credit.  Utility Bills must be paid!  These include Electric, Cable, Telephone, and Mobile Telephone providers.  The Utility will not negotiate the debt if it is in the hands of a Collection Company.

The approach I take with the collection companies that represent these utility companies is what I consider to be a dance.  Our goal is to get the record removed without payment to the Collection Company, because if the collection company is paid the record will be updated to indicate a $0.00 balance, and will remain on the credit report until it is 7-years old.  A Paid Derogatory isn’t much better than an unpaid one in the credit scoring system; although it would improve the debt-to-income ratio.

Our process (the dance) is to get the collection record removed using our technology.  What happens next is the Collection Company returns the account to the Utility.  It’s at this time the Utility will accept payment.  If the debt is not settled while in this state with the Utility it will be sent to another Collection Company and a brand new Collection will appear on the credit profile inside of about 6-weeks.

Our clients are told to make sure they have the funds to pay the Utility about 2 1/2 weeks after enrolling in our Ultimate Credit Improvement Program.  Believe it this works!

 

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