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Thread: another credit problem

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    God/dess greenidlady1's Avatar
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    Default another credit problem

    I had a credit card in collections. I called the collection agency to pay it off. They amount due was 970. They told me they would take 660. I paid the 660. Now on my credit report is shows I still owe 330 to the orginal collector??? This doesn't make since to me.

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    God/dess VenusGoddess's Avatar
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    Default Re: another credit problem

    Well, if you got the "deal" in writing, then you would be able to send the letter from the credit company with your cancelled check and have it changed to "paid as agreed" by the credit bureau. You still technically owe the money, but the $330 should be changed to say--write off or something like that.

    But, you probably didn't get a letter of compromise from the collection agency, and so now, if you want the credit clear, you will have to pay off the remaining amount.

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    God/dess greenidlady1's Avatar
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    Default Re: another credit problem

    No, I have the letter in writing they gave me up front and a copy of the cleared check. I sent it to all three credit bureaus and just checked all three and it says revolving 330.

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    Featured Member scorpio's Avatar
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    Default Re: another credit problem

    that's because you paid the collection agency, and not the creditor.

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    Default Re: another credit problem

    The creditor wrote it off and sent it to collections. They told me they took over the account. How would I know any different to pay them the 660 if they sent me a letter telling me up front the 660 would settle the account?

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    Default Re: another credit problem

    How would I know any different to pay them the 660 if they sent me a letter telling me up front the 660 would settle the account?

    ... well, the 660 did 'settle' your account - the collection agency is no longer coming after you, and the credit card company is happy with whatever amount the collection agency kicked back to them. But agreeing to pay a reduced amount will only 'clear' your credit rating if specific arrangements are made to that effect and if said credit reporting is made part of the 'settlement agreement'.

    Without such a specific arrangement in the 'settlement agreement', it is the 'duty' of the creditor to report to the financial world that you borrowed 990 and only paid back 660, meaning that the credit card company lost money extending credit to you (which they did). This is roughly the financial equivalent of accepting a 'plea bargain', where it's usually the case that someone getting off with reduced charges does so at the expense of a black mark on their record nonetheless.

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    God/dess greenidlady1's Avatar
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    Default Re: another credit problem

    What should I do then? Just go ahead and offer the orginal creditor the 330?

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    God/dess Bridgette's Avatar
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    Default Re: another credit problem

    At this point, yes if you want it off your credit you need to pay it. Call the credit card company, not a collection agency. Tell them you want to settle the bill in full, but you need them to agree to change the listing on your credit report with all 3 bureaus to "paid in full" upon receipt before you will make any payment. Get an agreement in writing that they will do so BEFORE you send them any money. If you don't get them to agree UP FRONT, IN WRITING to change your listing when the bill is paid, once they've got your money they won't do shit.

    hen just make sure you pay as agreed, and for good measure I'd send a copy of the agreement letter and your cancelled check or money order to each credit bureau.

    Most companies will work with you on the reporting thing if you're paying the full amount due.

    Quote Originally Posted by pheno View Post
    When you lead a nontraditional life don't try to measure it with traditional milestones.

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    Featured Member Vamp's Avatar
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    Default Re: another credit problem

    You can dispute the charge with the documentation you have.

    To do that request dispute forms from the credit reporting agencies. You can find them online. If the credit reporting agency or card company doesnt respond to the dispute within 90 days the credit reporting agencies will take it off. You would be surprised how often this works.

    Just keep in mind your problem no longer lays with the collection company but with the credit reporting agencies.

    I work in the finicial field and my manger uses this tactic often to clear up credit reports with minor flaws.

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