Credit repair

Pay a Collection?

Post reply Start a topic

Author

Message

Options

	Print this topic
	Invite a friend
	Email this topic

Bookmark online

	Add to del.icio.us
	Add to YahooMyWeb

Ism

Joined: 13 Feb 2008
Ism's page
Posts: 44

2506 Magic Points

Subject: Pay a Collection?

Fri Feb 15, 2008 3:33 pm

I have a store credit card that I defaulted on around 2002. The original credit card still shows on my report as a charge-off/collections. There is no collection agency on my report regarding this debt.

Yesterday I got a call from a collection agency about this debt. I told her I would only correspond via mail regarding this issue, (thanks to reading this forum!!) and she is mailing me a letter.

SO when I get the letter, what do I do? I have no problem paying it, it's just a couple hundred dollars, but what is the best way to go about it? Can I reply with a pay for delete letter when there is nothing from the CA to delete? Do I instead contact the original company and work with them? If I pay it now, won't that reset my 7 years? If I respond to the CA letter do you think that will end up on my report?

Why is it so complicated to try and fix past mistakes?

goodnatured

Joined: 03 Nov 2007
goodnatured's page
Posts: 3172

1091 Magic Points

Fri Feb 15, 2008 5:01 pm

check this out:

TOS violation deleted--Morningstar
Such content may be sent through private messaging
_________________
Goodnatured,

Trying to become and stay debt free, thank you for all your help and support!

Fasfeed

Joined: 06 Feb 2008
Fasfeed's page
Posts: 87

3212 Magic Points

Sat Feb 16, 2008 3:29 am

Collection agencys usualy mail out a letter giving you 30 days to respond back, if there is no response they will then add to your credit file. Remember you can always negotiate the amount you are willing to pay. The original creditor may accept payment or they may tell you to deal with collection agency.Call and ask them[original creditor] if they will deal with you on trying to settle the acount, if they say yes ,you could then if you choose send them pay for deletion letter with agreement to pay full amount or negotiated amount ,it s up to you . Either way send a pay for deletion letter to either or. Its best to try and get this account deleted from your credit file completely.

Morningstar

Joined: 17 Apr 2007
Morningstar's page
Posts: 609

40 Magic Points

Sat Feb 16, 2008 3:53 am

7 years of negative reporting refers only to the date of the original delinquency...payments will not affect this.
_________________
I don't dream since I quit sleeping

diem

Joined: 20 Feb 2008
diem's page
Posts: 97

222 Magic Points

Wed Feb 20, 2008 7:54 pm

Morningstar you post alot of good information, but that is incorrect. A payment WILL reset the clock on the 7 years. Absoutely not, do not make a payment!

Morningstar

Joined: 17 Apr 2007
Morningstar's page
Posts: 609

40 Magic Points

Wed Feb 20, 2008 11:12 pm

This is the subject of a lot of confusion, but a payment will not reset the clock. A negative entry can only remain for seven years from date of deliquency (or charge off), whichever is later.

Quote:

The 7-year period referred to in paragraphs (4) and (6)3of subsection(a) shall begin, with respect to any delinquent account that is placed for collection(internally or by referral to a third party, whichever is earlier), charged to profit andloss, or subjected to any similar action, upon the expiration of the 180-day periodbeginning on the date of the commencement of the delinquency which immediatelypreceded the collection activity, charge to profit and loss, or similar action.

_________________
I don't dream since I quit sleeping

diem

Joined: 20 Feb 2008
diem's page
Posts: 97

222 Magic Points

Thu Feb 21, 2008 12:15 am

Morningstar my sincerest apology as you ARE correct.

If a payment was made to the original creditor, it would reset it. However, since its with a CA it will not reset it as there is no way to make the account current. Once again, sorry Sad

Shawpiro

Joined: 31 Dec 2007
Shawpiro's page
Posts: 54
Location: Austin Tx

2510 Magic Points

Subject: I lve Diem!

Sun Feb 24, 2008 9:18 pm

diem and morningstar you and I are on the same page. I have argued that fact here for several months. It starts the 7 years all over again if paid to the original debtor. I have seen it on bureaus that the debt stayed longer when a credit collection gets involved also. Dont ask me how or why but it does happen. Im still working on that one.
_________________
Glynis Shaw
www.scorefix.net

325-372-8861 P#
512-436-9008 Fax#

Ism

Joined: 13 Feb 2008
Ism's page
Posts: 44

2506 Magic Points

Mon Feb 25, 2008 2:07 pm

Let me see if I understand:
* If I don't pay anyone, the original debt will drop off my credit report 7 years from first deliq, which would be in about 2009, but the CA could harass me until then, unless I use the letters to drive them back.
* If I pay the original creditor, the 7 years starts over from today, so it will show as a paid collection (or similar) until 2015.
* If I pay the collection agency, the original late still drops off next year, but the CA will remain on my credit report until 2015.

So even though the "right thing" to do is pay my old debts, in this case I actually end up worse off than if I didn't?

Shawpiro

Joined: 31 Dec 2007
Shawpiro's page
Posts: 54
Location: Austin Tx

2510 Magic Points

Subject: That happens.

Mon Feb 25, 2008 5:15 pm

Our credit standing has gotten away from doing the right thing. Which in my opinion sucks. This happens all to often. Your in a catch 22 situation. Thats why the system sucks. Even if you pay the debt it will still show as a collection and paid which lowers your credit score. Its not set up to reward anyone for doing the right thing.
_________________
Glynis Shaw
www.scorefix.net

325-372-8861 P#
512-436-9008 Fax#

sdchargers_63

Joined: 13 Aug 2007
sdchargers_63's page
Posts: 915

2963 Magic Points

Subject: credit

Mon Feb 25, 2008 5:34 pm

This IS confusing. I guess you have to decide which is the 'less of the two evils'..in a way. Either way..your credit score goes down (if I understand this right). Depending what you decide to do, would your credit score go down LESS points, if you decide one 'approach' over another? I hope I'm explaning myself question clearly.

Shawpiro

Joined: 31 Dec 2007
Shawpiro's page
Posts: 54
Location: Austin Tx

2510 Magic Points

Subject: Good Question.

Mon Feb 25, 2008 5:41 pm

Ill have to let someone else with experience in that area answer that one for you. I think it will lower your score less if it shows collection paid but Im not totally sure. Either way it still lowers your score until it is taken off.
The scoring system is such that no one can figure it out even the bureaus. You can have exactly the same things showing on 2 bureaus and will have 2 different scores. Its very confusing and I work with this everyday. I still dont know it all and dont confess that I do. This is one area that Im trying to figure out. If I ever do Ill sure pass the information on.
_________________
Glynis Shaw
www.scorefix.net

325-372-8861 P#
512-436-9008 Fax#

hottopictink
Guest

Subject: Good Question

Thu May 01, 2008 4:29 pm

Whether collections are paid or unpaid they are still NEGATIVE on your account and are considered the same whether paid or unpaid. The older the collection is the lesser it impacts your score. Unless you have an agreement with a collector "Pay for Deletion" letter the only thing that will help your credit score is time.

sdchargers_63

Joined: 13 Aug 2007
sdchargers_63's page
Posts: 915

2963 Magic Points

Subject: debt

Thu May 01, 2008 8:58 pm

Do "Pay for Deletion' letters REALISTICALLY work? I mean, you can pay off a debt, if the SOL hasn't expired yet, and send a "Pay for Deletion' letter..and the debt will be taken right off, of your credit?

Morningstar

Joined: 17 Apr 2007
Morningstar's page
Posts: 609

40 Magic Points

Fri May 02, 2008 4:10 pm

They tend to work; if the creditor or CA agrees to it.
_________________
I don't dream since I quit sleeping

1 2 Next
Page 1 of 2

*Email:
*Password:
*Display Name:

	* denotes required field

*Email:
*Password:

	Forgot password?

*E-mail: