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I had a charge off in sept 2006 from First Premier CC for $425. FP sold off my debt to a collection agency in march 2008. The CA hasn't sent me a letter till now but they keep calling me since march 2nd week. If I pay the CA $425, should they report this to the bureau? They did contact me first in march 2nd week but they pulled my Ex report in feb. are they obligated to report the payment regardless of the time frame? Should I pay them, or wait for a DV letter and then pay or do I validate without a letter?

Niicss · Posted: Mon Jun 16, 2008 5:44 am Post subject:

Welcome Paterson.

You can ask them to provide you a debt validation letter but only in case

1. If you think that you have paid the debt in full.

2. If you cannot recognize the debt.

3. If the debt has past the SOL/statute of limitations.

Otherwise you should try to pay off debt and that will have a good impact on your credit report.

Hope this helps.

Good luck.

gmakerley · Posted: Mon Jun 16, 2008 12:51 pm Post subject:

paterson, you acknowledge that you owe the debt. why would you want to prolong the issue by requesting a validation that you really don't need?

call them, see if you can negotiate a payoff lower than the amount owed, and then pay it!

laphillips

I agree with George. Negotiate a payoff amount - maybe start in the area of $325 (remember this is a negotiation).

**BE SURE TO GET THE NEGOTIATED AMOUNT IN WRITING BEFORE YOU SEND THEM ANY MONEY**
This can be via FAX - Then demand for a letter stating the account has been paid in full to have in your records just in case they don't actually report to the credit reporting agencies as they should. (Hey this happens all too often.)

Good Luck!

Guest

Ok but don't you guys think the CA would raise the payment above 425? I often hear CAs doing such things and I don't wanna spend more on this...

larry · Joined: 27 Jun 2007 Posts: 3322 474.67 Dollars($)

Hi Paterson.

Welcome back.

Collection agency can raise the money and you are right that they do such things. That is why you need to negotiate with the CA ASAP as George and Lynnette has advised you above. BTW Don't forget to ask them to give you debt release letter when you pay them off.

Best of luck,
Larry

cliff3 · Posted: Tue Jun 17, 2008 7:05 am Post subject:

Ok guys don’t hate the messenger but, one of the “biggest” miss conceptions about credit restoration is to payoff old debts. THIS IS WRONG! I REAPEAT THIS IS WRONG! Paterson don’t you dare do anything with the old debt. It has already been written off and as of September 2008 its affect on your credit will be minimal at best.

Here is what happens if you do payoff and/or negotiate and start paying the collection agency on the old debt. How the credit bureaus rank the majority of your credit score is on the last 24 months. Once something goes beyond 24 months its negative affect on your credit is minimal. If you go and pay the collections agency you have just moved them from past 24 months where they have little affect on your credit to month one where they have “TREMENDOUS IMPACT” on you credit! This will have an immediate negative impact on your credit and will lower you current score at least another 50 points.

There is a lot more explanation as to why and how this happens but I will spare you the boring details. Just make sure that you are current on all of you current debt within “24 month” window. Next, I would recommend entering into some type of credit restoration program where your report and be reviewed by a qualified professional and suggestions can be made as to how to improve your score.

Hope this help. Remember tell the collection agency to go and shove it!!!

laphillips

Sorry Cliff but I don't agree entirely. Yes, the last 24 months are the MOST critical but I have worked with too many lenders who DEMAND that all collection accounts be paid off which include charge-offs that have been sent to collection agencies...anything being REPORTED as active as what a collection agency is actively working to collect is considered current and thus falls within that 24 months.

gmakerley · Posted: Tue Jun 17, 2008 9:04 am Post subject:

okay, cliff...if i borrow $10 from you and tell you to shove it when you ask me to pay it back, will you lend me $1000?

talk about a misconception; i can't believe you'd say that paying a debt you owe is a negative thing. that debt is going to remain on paterson's credit report until the year 2013 - negligible effect?

i dunno...maybe they do things differently down in your neck of the woods. around here, a crummy credit score will remain crummy until collections/charge offs are paid in full and the borrower maintains a decent payment record from that point on (or earlier, we hope).

and all this over a measly $425???

erb1953 · Joined: 24 May 2008 Posts: 79 0.19 Dollars($)

I think they should be taken off or reported as some type of positive activity if you have paid them. As of now, they still stay in the negative side of the house, they just show paid in full or settled. I think they should have to change status once they are paid off, maybe even removed.

fireyone_02 · Joined: 20 Mar 2008 Posts: 280 2.09 Dollars($)

I agree erb. I think people would be more apt to pay off an old debt if it was removed or the status changed. I know you can go for pay for delete but I also see fro being around the forum this can sometimes be a big headache. Some will promise and not remove, some will get it in writing and still have theheadache of getting it removed. I thin if I was in the OP position I would pay off the $425. I don;'t think iot is a measely amount of money though, unless you've got it made. Right now $425 matters to ALOT of people. Sure would help pay for some gas and food.

Guest

I enrolled in a debt consolidation company. Do you think it would be benefical to pay more every month than required?

jameshogg · Posted: Sun Jan 25, 2009 10:21 pm Post subject:

Hi viola,

You will have to pay according to new payment plan that has been offered to you by the debt consolidation company. If you can pay more than what you have been asked to, it will help you in coming out of the debts quickly.

Thanks

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Should I wait for DV letter and then pay charged-off amount?