Settling debt ? What would You do?
I have an old debt on my credit (not old enough to fall off) of $1,289.00
I called the collection agency to see what options I have. She says I have 2 options.
#1. Pay now, she will knock off $200.00 and I pay $1000.00 and she will have it erased like it was never there (off my credit report) I DID request this in writing before I pay anything. I have until Monday to take advantage of this offer.
#2.Break it up in payments, she does NOT knock that 200.00 off, and it will only show as a Paid Collection on my credit report.
Not sure if having a Paid Collection is so bad. I'd love to have it erased, but $1000.00 is chunk I don't wanna part with all at once!
Can they really ERASE it? Sounds like gimic? WWYD?
Re: Settling debt ? What would You do?
CAN they really erase it ? Good question. If the original debt was passed to a collection agency, you'll have to do some serious checking to make sure that the original debt holder as well as the collection agency are both willing to 'whitewash' their credit reports.
If you 'settle' for a reduced amount, it's also possible that the collection agency will remove their negative report, but in its place will enter a new report that the debt was 'settled' for less than the full amount owed. Such reports, while better than delinquencies and late paid collections, are still looked on unfavorably by lenders. At the very least, such a report would indicate that some previous debt holder was unable to get all of their money back from you ( i.e. took a loss ).
I'd try to get their settlement offer in writing ... with some reference to reporting by the original debt holder.
Re: Settling debt ? What would You do?
Do get it in writing. Some collection agents work on commission and will LIE their asses off to get you to pay. Don't trust them, and always be mindful of what you say. They are slippery slimy mofos.
Re: Settling debt ? What would You do?
If you're able to pay the $1,000, I would definitely pay it.
Re: Settling debt ? What would You do?
I don't think they can erase it like it never happened. I could be wrong.
Re: Settling debt ? What would You do?
^^^ at the very least, the collection agency alone cannot erase every vestige of this debt's existance from credit report files ... since there was also an original creditor who undoubtedly made earlier reports re this debt before 'turning over' this debt to the collection agency !
Re: Settling debt ? What would You do?
Get a written release saying the debt was "paid in full." Get the most recent assignment of the debt to the debt collector. Those two items will allow you to successfully contest the debt with the reporting agencies. The assignment says that prior collectors and the original lender have no interest or right to make negative entries on your credit report. The "paid in full" release proves that the last collector has no further rights. However, if they only give you "paid as agreed" then the negative will remain. Still, you will have to do the work to clean up your credit report, not the lender and not the collectors.
Honestly, you might be better off to challenge the report and see if the collector can prove it up. If they can't then the credit reporting agencies have to remove the debt. If the debt collector can prove the debt, then you've really got to pay them. Which is no worse position than you are in now.
HTH
Z
Re: Settling debt ? What would You do?
Well, the woman has still not sent me the email that she said she was going to send "right now." So clearly it was a gimmick.
I will break up the payments and get the Paid In Full letter, as well as the other letter you spoke of.
I HAVE PAID EVERYBODY (except this one) ON MY CREDIT AND HAVE A STACK OF PAID IN FULL LETTERS! IM SOOOO PROUD OF MYSELF!! NOW TO SIT AND WATCH MY CREDIT SCORE GO BACK UP! :)
Re: Settling debt ? What would You do?