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Collections question

New Visitor

Collections question

As i read trying to learn what credit scoring is all about it makes my head hurt. But im trying to buy my first house and get my credit scores up. my question is i have 3 things in Collections all from medical bills CAPIO PARTNERS LLC- 1,259.00 , 100.00 , 100.00. people have said paying them will hurt your score more vs leaving them alone. also can it be removed or not. thanks for any help as i am new at this

 

 

P.S. What is the best way to get/guess what your experian fico score is? as i cant get it here


9 REPLIES
Senior Contributor

Re: Collections question

HI there - Yes the can be removed IF you can get a PFD (which means pay for delete).  You write to the CA, saying you will pay in full on this date if they agree to your terms by writing back on their letterhead that yes they will accept the money and delete the account.  Don't call - and don't send money unless they agree to the PFD, in writing.  Then make sure you save those letters for a long long time (just in case).

 

Good Luck! 

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Frequent Contributor

Re: Collections question

Along the same lines from my recently posted:

 

I

My credit has been perfect for about 15 yrs now but just received a collection frm a health care provider courtesy of Tricare not paying the bill which was $96.55.  When I got the notice from BC Services out of Longmont, CO about 30 days ago, I right away paid $20 while I continued to persue Tricare for the payment.  They reported through Experian which my score had been about 720 or so.

 

Questions are:

 

1.  how much will this affect my score till I pay it off, which will be tomorrow?  Bal ($76).

2.  spoke with them (BC Services) Friday and they stated they will report it as a zero balance.  Will that reinstate my credit score with experian?

3.  they also said that upon supporting documentation from Tricare that it was a billing error, they would remove it completely.  Will that have the same effect on my score as the $0 balance.  I called TC on Friday and they said for the 100th time, they will do an adjustment for that amount and I don't count on it.

4.  is it possible they may have reported to the other bureaus and I just don't see it yet?  

 

 was completed devasted to see a collection account and couldn't sleep well the other night.  As I questioned to the rep, i thought they would do an harrassing phone call or another letter before they went straight to the credit file?   Thanks.

 

Community Leader
Epic Contributor

Re: Collections question

I dont understand the logic behind advising that a paid collection is worse than an unpaid collection.

The collection itself is a major derog in your credit scoring.  FICO scores the occurance of the collection, and paying or not paying is not a credit scoring issue.  They are scored the same.  Removal of the affect of the collection on your credit score is achieved only by deletion of the collection itself, such as by way of a PFD agreement with the debt collector. So paying wont harm your credit score.

 

Separate from the issue of FICO scoring is manual review of your CR.  A potential or existing creditor who reviews your CR will certainly look unfavorably upon your failure to pay prior debt.  Showing that a debt, while having gone to collection, was nonetheless paid, is a positive, not a negative.  So one factor is how long is the collection  scheduled to remain in your CR before its CR exclusion date has arrived (i.e., 7 years plus 180 days from the DOFD on the OC account)?  Until it is excluded from your CR, its status as unpaid will be included in any CR pulled by others.

 

 

And of course, unpaid amounts under collection, or for that matter in any status, are subject to legal action for their recovery.  To simply ignore a debt based only on credit scoring implications is not the entire picture.  The SOL status is also important, as it has implications should any legal action arise.  If expiration of SOL has not occured, or has substantial period remaining, the risk of legal action remains.

 

When you read advice not to pay delinquent debt, what are the asserted advantages (other than simply keeping the $$ in your pocket)?

 

Senior Contributor

Re: Collections question

The logic is (based on my experiences w/ medical collections) that what motivation do they have to delete if already paid them?  Seems to me they'd be much more motivated to delete if they get something out of it.  Since as you explained, the hit to the credit report and score already came when it was first placed - what motivates OP to pay it since the damage is done?  It's a minimal amount of money - If it went to a legal situation, OP could easily pay w/o it resulting in a judgment.

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Moderator Emeritus

Re: Collections question


dts021108 wrote:

As i read trying to learn what credit scoring is all about it makes my head hurt. But im trying to buy my first house and get my credit scores up. my question is i have 3 things in Collections all from medical bills CAPIO PARTNERS LLC- 1,259.00 , 100.00 , 100.00. people have said paying them will hurt your score more vs leaving them alone. also can it be removed or not. thanks for any help as i am new at this

 

 

P.S. What is the best way to get/guess what your experian fico score is? as i cant get it here



Welcome to myFICO.

 

Unfortunately no one has been able to buy their own Experian FICO score since February of 2009. Creditors can pull Experian and also there is a CU (PSECU) in Pennsylvania that supplies that information to it's members only.

 

 

 

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Valued Contributor

Re: Collections question

Babbles and DTS,

 

Have either of you talked to orgiinal creditor about the debt ?  Will the OC accept payment for the debt ?

Equifax My FICO score 814 11/29/2016, Discover TU FICO 807 12/29/2016 Citibank Equifax Bankcard FICO score 827 12/27/2016 Average of Accounts 13 years and no Installment accounts, 1 TU inquiry in 2015
Frequent Contributor

Re: Collections question

yes, I did talk to the OC on Monday and they say its at collectionsat this point and had no more either access or info on it.   I disputed my account to experian as paid in full, (which it is) so what do you think the repsonse may be from the CA?  They agreed to deletion.    

New Visitor

Re: Collections question

What if youve already paid? I have a zero balance on one. I didnt even really pay it it went to collections as i was waiting for a compensation bureau to pay it.

Valued Contributor

Re: Collections question

App for an AMEX you want.  If you get denied they will tell you your EX.

In My Wallet:
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In My Sockdrawer:
AMEX Clear, Citi Platinum Select, US Bank Platinum, J.Crew