| Author |
Message |
|
Options 
Bookmark online
|
Nessie1
Joined: 04 Mar 2009
Nessie1's page
Posts: 8
276 Magic Points
|
|
Subject: Should I accept offer to settle for 15% on old debt.
|
|
|
Wed Mar 04, 2009 2:08 pm
|
|
|
| A collection company is offering to let me pay off my debt for 15% of total balance. Should I do it? Im trying to fix my credit and would love to pay my old debts off but I am not sure if this is the best way. I dont want to lower my already low score & start the 7 year cycle over again AND pay a bunch of money to be negativly effected. |
|
|
Justin
Joined: 17 Jul 2006
Justin's page
Posts: 1240
28942 Magic Points
|
|
|
|
|
Thu Mar 05, 2009 9:35 am
|
|
|
| You first need to check whether the collection agency that if offering you the settlement actually owns the debt or not. For this, you need to send them a debt validation letter by certified mail. If the CA properly validates the debt, you can ask them to send you the settlement in writing mentioning that they are willing to agree to 15% of the total outstanding debt. After getting the settlement agreement in writing you can pay it off. |
|
|
Mary
Joined: 06 Jul 2006
Mary's page
Posts: 686
17396 Magic Points
|
|
|
|
|
Thu Mar 05, 2009 9:54 am
|
|
|
First of all you should check whether the statute of limitation on the debt has expired or not. If it has expired, you need not make any payment towards the debt and the creditor cannot recover it. If you make any payment towards the debt after the SOL expiry, then SOL restarts and you may be required to repay off the entire outstanding debt. I can help you out in this forum if you can tell me the state where you have made the loan agreement and the date of your last payment towards the debt.
_________________
Where there's a will, there's a way !! |
|
|
Nina97488g
Joined: 08 Feb 2009
Nina97488g's page
Posts: 8
320 Magic Points
|
|
|
|
|
Fri Mar 06, 2009 3:58 pm
|
|
|
| You can easily get a collection agency off your back and off your credit report by sending them a Validation Letter by certified mail. The vast majority of the time they don't even have any documents. |
|
|
fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4285
127 Magic Points
|
|
|
|
|
Sat Mar 07, 2009 1:22 am
|
|
|
| I would first check the SOL then send out the debt validation before paying anything. I also would not send the debt validation until I was sure the SOL past. |
|
|
Guest
|
|
|
|
|
Sat Mar 07, 2009 7:22 am
|
|
|
| I agree wholeheartedly with fireyone. I forgot about the SOL. |
|
|
Nessie1
Joined: 04 Mar 2009
Nessie1's page
Posts: 8
276 Magic Points
|
|
Subject: SOL to settle debt
|
|
|
Fri Mar 13, 2009 3:18 am
|
|
|
| I live in Florida. My Experian credit report says this debt is "scheduled to continue on record until 1/2010." That seems soon, would it positively effect my credit score at all to pay this CA? The OC was Providian Financial (credit card.) |
|
|
carol
Joined: 27 Jun 2006
carol's page
Posts: 1307
Location: Los Angeles, California
29555 Magic Points
|
|
|
|
|
Fri Mar 13, 2009 5:32 am
|
|
|
No, paying off a debt would not improve your credit score until the negative listing gets removed from your credit report. Paying off a debt does not mean that the collection agency would remove the listing from your report. Moreover, even if the CA removes the listing through PFD agreement, the OC listing would stay on your report till Jan 2010. So I think that you should wait till Jan 2010 for the item to get removed from your credit report. Once the negative item gets removed, your credit score would definitely improve.
_________________
Keep in touch
Carol |
|
|
sdchargers_63
Joined: 13 Aug 2007
sdchargers_63's page
Posts: 1889
1356 Magic Points
|
|
Subject: credit
|
|
|
Fri Mar 13, 2009 11:31 am
|
|
|
| Everyone has wonderful advice here, about the SOL. I DID learn the hard way ( because I din't know at the time) that you CAN re-start a debt, if the SOL has expired. Thank goodness, the SOL, in the state of PA, is 4 years. |
|
|
fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4285
127 Magic Points
|
|
|
|
|
Fri Mar 13, 2009 4:01 pm
|
|
|
| Restarting the SOL is as simple as one payment and when you do that you open yourself up to a lawsuit. Honestly though the debt collectors will use scare tarics and forego telling you your true rights just to get you to make that one payment. My hubby has a really old debt that will fall off in 2011 and every income tax time for the past couple years we get settlement offers in the mail. They offer payment arangements and they also call non stop. It usually quits after a few months . I think at this point anyones safest bet is to let it fall off the report especially with the debt collestor tactis these days. |
|
|
ShaunCordell
Guest
|
|
Subject: SOL
|
|
|
Thu Jan 19, 2012 11:55 am
|
|
|
| Is the statute of limitations where the creditor is based or where you live or where the collection agency is? Which state SOL do I need to adhere to? |
|
|
ShaunCordell
Guest
|
|
Subject: SOL
|
|
|
Thu Jan 19, 2012 11:55 am
|
|
|
| Is the statute of limitations where the creditor is based or where you live or where the collection agency is? Which state SOL do I need to adhere to? |
|
|
