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question about offer I received

Date: Sun, 02/05/2006 - 12:17

Submitted by anonymous
on Sun, 02/05/2006 - 12:17

Posts: 202330 Credits: [Donate]

Total Replies: 5


I have received a settlement offer from midland credit management who received the origianl case from Associates. They have offered to settle if I pay half of the origanal balance by a certain date. The account is seriously delinquent anyway, but what does it show up as on my credit report if I decide to settle by paying half the balance? I want to pay this because it's a great offer, but will it affect my credit report negatively by paying only half the balance and settling? Just wondering if it's worth it, or if I should pay the full balance by making payment arrangements if that will look better on my credit report.


Before you pay this debt, you must consider the SOL period and see if it is within the legal collection period. If the statutes have expired, you can't be forced to pay it and no legal actions can be taken against you. But if you start the payment, you will come under the legal collection period till the statutes expire once again.

Do not pay the account or sign a promissory note till you have reviewed the details properly. However, you will also like to see your account shown as 'paid' in your credit report. Do not get convinced for the term 'settled' in your CR as it is a negative remark that will hurt your ratings for a longer period and making it difficult for you to acquire new credit.

Ask for a debt validation of this account from the company before you make any payment agreement to it. Also, check the statutes before signing the promissory note. Do let us know the state in which this account occurred so that we can confirm you the SOL period.


lrhall41

Submitted by david on Mon, 02/06/2006 - 04:16

( Posts: 1229 | Credits: )


indebt

In Minnesota, the statutes for legally collecting the debt expire after 4 years. You also need to know the last time when you paid towards the debt account. From that period, the calculation of the SOL will begin and if it has gone beyond 4 years, you are out of the legal collection period. No agency can thereafter force you to pay this account and no actions can be taken against you.


lrhall41

Submitted by david on Fri, 02/10/2006 - 09:38

( Posts: 1229 | Credits: )


But it will still remain on my credit report as unpaid, correct? This account is from 11 years ago - I was very young and irresponsible and "forgot" about the account. I have not made an effort to pay on it until now (now that I am receiving these settlement offers). What is your best advice for me? Should I pay the settlement offer, or not pay anything at all? Do I need to contact Midland to let them know they cannot legally collect on this account? I'm not sure what I should be doing at this point - I am really trying to clean up my credit because we would like to buy a house this year - plus I can't get any credit cards because my credit is so poor and I'm looking for an easy solution to make it better.


lrhall41

Submitted by on Fri, 02/10/2006 - 15:01

( Posts: | Credits: )


I think you have not made any payment on this account within the recent 4 years. Also, this account must have been automatically removed from your file after 7 years from the date of reporting. The FCRA laws allow negative information to stay in the file for a period of 7 years only.

Contact the bureau and get this item removed from your file permanently. Dispute them on this item and they will verify it with the company. If it fails verification and your dispute is found correct, the bureau will update your file and you will be sent a free copy.

Don't make a payment on this account now. Otherwise, the SOL will be renewed right from the beginning for another 4 years and the negative remarks will hit your file. Credit scores will be further lowered and you will have no option but to pay it as long as you are within the legal collection period.


lrhall41

Submitted by david on Fri, 02/10/2006 - 15:15

( Posts: 1229 | Credits: )