Collection items reported to credit agency...now what?
Date: Thu, 06/14/2012 - 15:11
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?
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?
Quote:1) How adversely will this affect my score? A collection a
Quote:
1) How adversely will this affect my score? |
A collection account is always negative.
Quote:
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? |
It will stay on for 7 years. Your state SOL of 4 years is the time they can sue you. Even when that expires, you still owe the debt.
Quote:
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? |
They are not going to pay for delete. It is not accuate reporting and quite frankly, is not worth the time to them. The commission on an $80 account aint squat and they are not going to waste manpower time manually doing a delete.
Dispute the validity of the debt. Personally I would be disputing it back right to the internet service provider. Complain on social media like facebook...they hate negative remarks. Find the ISP's facebook or twitter page.
Collection items reported to credit agency now what
What if I took a different route and paid the credit agreement off with my overdraft, could I then transfer my overdraft to a 0 credit card?
lnk removed per tos
^That can be done but it would involve the bank approving a mass
^That can be done but it would involve the bank approving a massive overdraft which they probably won't. If they somehow do, and say you end up -1200, what you can do is open a 0 percent apr credit card and instead of doing the electronic balance transfer, you can get a check sent to you for the balance transfer, then deposit that check into your account thus bringing the account to 0. Again this idea hinges on the bank approving a large overdraft which they probably won't.
