In the Land of the Lost & Found asked:
I spoke to a collection agency. They are saying that I can settle my debt for less than what I owe. It still has not hit my credit report. If I settle will it eventually show? The agent said it wont, but I know they just want to get paid.
Any personal experience w/this?
I asked for it in writting. She said they don’t have a letter format for this.
COURTNEY
I spoke to a collection agency. They are saying that I can settle my debt for less than what I owe. It still has not hit my credit report. If I settle will it eventually show? The agent said it wont, but I know they just want to get paid.
Any personal experience w/this?
I asked for it in writting. She said they don’t have a letter format for this.
COURTNEY
#1 by SPIFIMAN1 on February 13, 2010 - 6:51 am
JOSUE
Get them to put this in writing before you pay them a dime.
Since they have not reported the account already, they should not have a problem with this.
What a crock, all they have to do is send you a simple letter stating that in exchange for your payment they agree not to report this account to the credit bureaus.
Send them a certified letter return receipt requested and tell them that the only way you are going to pay them is if they agree to not post this account to the credit bureaus and wait for their response.
#2 by brokerstorage on February 16, 2010 - 2:31 pm
GRADY
This needs to be in writing. If not there is a very good chance that they will take your money and possibly go ahead and put it on your credit report anyways, It’s the nature of the beast. Remember collection agencies are the scum of this earth so do not believe anything they tell you , only what is in writing; something you can use in court if ever needed.
#3 by scottclear on February 19, 2010 - 6:01 am
WILLIE
I can’t really tell what stage you are in.
Some creditors sell the accounts to collections agencies, and they are acting for themselves in trying to collect the debt. While other creditors hire collection agencies to collect the debt. When the collection agency owns the debt, they can make all the decisions, when they are only acting for the creditor, the creditor still makes all the decisions.
What we are really talking about is money. It costs creditors money to report their records to the credit bureaus. And it costs to report all the updates. If the creditor has not yet reported you, then you are in pretty good shape. You can probably settle with the collection agency and never have it reflected on your credit report.
If the collection agency owns the debt, then you can probably be assured that what it says will be true. But you gotta toe the line. If you agree to pay in full by noon tomorrow, do so. If not, all bets are off.
If the collection agency does not own the debt, then you are out of luck. They can’t tell the creditor what to do–they are merely an agent for the creditor in the collection of the debt. So not matter what they say, your credit may still suffer.
** Note: This is a general discussion of the subject matter of your question and not legal advice. Local laws or your particular situation may change the general rules. For a specific answer to your question you should consult legal counsel with whom you can discuss all the facts of your case. **
#4 by Ask M on February 20, 2010 - 9:00 pm
TERRELL
buddhibbs.com
#5 by fruitie7 on February 21, 2010 - 1:51 pm
WENDELL
First, if a debt is already at a collection agency, it will already have been reported on your credit report, unless it if from a medical bill, or other place like that.
Two, any time a debt is settled for less then you owe, the unpaid balance is considered income and will usually be reported to both you and the IRS on a form 1099.
Third, before you even send a penny, get a full detail of the bill to make sure you owe it, agreed amount to be paid and the amount to be forgiven in writing.