trying to repay collection agencies
Date: Tue, 07/24/2007 - 11:32
Few years ago, when i was in college, I maxed all my credit cards. I was broke and did not have any money to pay. All the accounts were charged off and referred to collection agencies. Now I have a good job and want to pay back all the loan. I know that paying back will not improve my score, but atleast I am hoping to get the negatives removed from my credit history. I will pay all the collection agents in another month or so. Please guide me if you have answers the following questions:
1) By paying off the outstanding balance, can the collection account be deleted from my credit history?
2) What will be the status of the original charged off account that is still remaining on my credit history?
Please guide me if any of you have suggestions in dealing with such situations. Thank you!
First, you need to know what is the current status of each accou
First, you need to know what is the current status of each account? Check for the SOL period of each account from the date of last payment. Each state has its own statutes. If the SOL has expired, no company can sue you in the court for not paying the debt. The account will still be reported as a negative item. Now if you decide to pay, make sure that you pay it in full or as per the arrangements done. Any partial payments will renew the SOL and the company can take legal actions in case of a default.
Make sure that the CA has validated your debt account. You need to be confirmed of your money going to the right place and your account getting updated. Under the fdcpa laws, you have the legal rights to ask for the debt validation before making a payment to the CA. Once the account is reviewed and you have got the arrangements done with the CA, you may ask them to delete the negative item from your credit report. They are not legally bound to do this, but there are chances that they will remove the item in exchange of your payment.
Find out if the account is still with the original creditor or it is sold to the CA now. If the original creditor still has your file, you may work out arrangements with them also. If you pay to the CA, they will report your file to the OC with your last payments.
