Collections
Date: Wed, 07/06/2011 - 07:07
I have a collections account on my credit from a past employer. They overpaid me when I left, and I attempted to work with them on paying back what I owed. However, they wanted me to pay back net (including what was taken out for taxes I already paid, social security, Medicare, etc). Since we couldn't come to an agreement, I cut them a check for what I calculated I owed. They never cashed it, but now I have a collections account on my credit for less than what I initially tried to pay them. I don't mind paying them, but I want the collections account off my credit. I also am having a hard time understading how it is legal for them to just place the collections account on there?
Paying back "net" is your pay AFTER taxes and other deductions.
Paying back "net" is your pay AFTER taxes and other deductions. They cannot refund you on the tax portion which would have already been submitted to the feds. "Gross" is your pay BEFORE taxes.
Sounds like you owe it and as such, they are entitled to report to the credit bureaus.
