I had an interesting experience that I not only question the ethics of, but also the legality. My credit is excellent and has been between 780 and 810 for the past 8 years. About a week ago a $199 derogotory charge shows up on my credit report from 6 years prior. It was a gym membership that I apparently forgot to close out when I moved. Anyhow, when I noticed the drop in my score (643) I immediately called the collection agency and asked if I could have it removed completely from my credit report. The collection agency said that if I paid it in full and paid an additional $50 the creditor would remove it completely.
I did it because fighting it would have taken forever, but I question this. It seems like extortion to me Creditors have historically been willing to remove items just for receiving payment. Now, it's almost like they know the customer will want it removed so they are trying to make money from it. Is this legal?