Paying off collection accounts

Were the debts pruchased by a junk debt buyer? If so, don't pay a single dime. Demand that they prove you have some contractual obligation to pay them. Paying them will not do your credit any good.

How far until the debts are out of the SOL? If you are being contacted by just a third party collector, you might consider working out a deal with the original creditor, such as Sears, or whoever etc. If it will be out of the SOL within a month or two. Don't pay them anything.

Some of my debts have been bought by collection agencies, and I can no longer work with the OC. Most of the accounts are only delinquent 6 months to a year, so there is still a long time left on the SOL. So, paying them would be best in my opinion, but it makes me mad that it may not help my credit at all.

To the debt buyers send a validation of debt letter, not that they simply have your address. Demand that they prove that you have a contractual obligation to them. Sent the letter Certified, Return Receipt. You'd be doing nothing but enriching them buy making any payment. And it would restart the SOL. 6 months to a year seems a bit soon for junk debt buyers.

First verify that it is indeed legit. Second, send a letter to the demanding agency, stating that you will only deal with the orginal creditor. You must mail it Certified, Returned Receipt. They have to sign for it. It may not stop them from contacting you one more time but after that they will go away...but somebody else may try again.

People who purchase debt for the purpose of collection are "debt collectors" within the meaning of the Fair Debt Collection Practices Act. As are collection divisions of creditors when they use a name other than the "real" name of the creditor.

All are right here. You must follow the usual validation procedure.

Paying bills is always good as long the account is there on your credit report. Paid collection is still a derogatory mark, but it is better than unpaid collection. That is the reason you might like to pay a collection account.

I have a collection agency trying to collect on a credit card debt 6 mo from sol. should I even talk to them? did I make a mistake that I even stated the debt was mine and started talking to them about it?

If you make a single payment the SOL will start again. Even if you agree to pay, that will restart the clock.

However, you might like to pay this because paid collection is better than unpaid. Try to get the account settled with a lower amount and do not go for installments, get it paid in one lump sum amount.

yes, talk to them. talk and talk. do nothing BUT talk. promise them something general and vague, like, "I have definite plans to take care of this problem." start settlement negotiations. but don't send them any promises in writing. Try to get them to tell you when you were first in default. String them along as much as possible. But if you make a written promise to pay, or make a payment, or accept any extension of new credit, you start the clock ticking all over again.

So, does this mean paying off debts that are well within the SOL will not improve your credit?

I am not an expert on what will or will not affect your "credit", so I don't know about that.

One thing to be aware of is that the statute of limitations is not a bar to FILING a suit. It's an affirmative defense. The debt doesn't go away like Cinderella's coach when the clock stops ticking on the SOL. Legally, the debt is still a debt. What it means is that, if they sue you, and the SOL has expired, you can, by an affirmative pleading, get the court to dismiss the case. Once the case has been dismissed, there can be no further debt, because of "res judicata" (things already decided); but until that time, the creditor can still legitimately report the amount due as an outstanding debt.

I would think any creditor that looked at your credit report for big things like mortgages would view more than just the number on your credit report. A paid collections would surely be better than collections still owed. Don't forget that some creditors list the dates of late pay (30, 60, 120 days late). I think if it is a valid debt, paying would always be the best option when trying to improve a credit report.

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Is it true, that once a collection agency, accepts a payment, that they then agree to that amount, even if it is only 25.00?

first validate the date and if they can validate it and its really yours try a pay for delete letter get everything in writeing....