A couple of years ago I ordered internet but couldn't get it to work and cancelled service promptly. Next thing I know I get a notice saying that my account is a couple of months past due. I told them I'd cancelled but they insisted having no record of it. They said they'd cancel the account but I'd still owe about $80. I unfortunately didn't keep a record of who I spoke with and day i called to originally cancel the service so I said I could pay a discounted amount. They didn't agree and I didn't pay.
Over the last couple of years, the debt moved through a couple of collections agencies and I tried to get it settled for a lesser amount but they all wanted payment in full. Now, it's with a collection company that's reported the debt to a credit reporting agency and for the first time I have something negative on my credit report. I have over 15yrs of excellent credit history (in the mid 700s). I called the current collection agency and they said they???d settle for half of the outstanding amount. I said that I don???t owe this but to have it settled and off my credit report I???d pay about 25% of the outstanding amount which I consider more than reasonable. They refused my offer and because I was willing to negotiate are saying that I accept the debit is mine. My questions:
1) How adversely will this affect my score?
2) How does SOL work? I know the SOL for my state on this type of debit is 4 years but what does that mean? The collection agency can no longer collect on this? Can I have it removed from my credit report after the SOL expires or do I still have to wait 7 years? If my credit score is not affected too adversely, should I just wait it out?
3) Is worth it to send a PFD letter assuming I???ve done a debt validation and they actually own the debt? I???ve heard agencies are no longer responding to these and may counteract by suing for a larger amount?
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