Settling with MCM?

[Matthew_Foley]

Need some advice, and I trust and value you're input here on these boards.

Sorry if this question has been asked 1000 times, I don't have too much time to ask this question as I'm on my lunch break. 

Quick background:  I am trying to settle any outstanding debt that went into collection.  It's been in collection for about 1 or 2 years.  I'm trying to repair my credit score so that I can purchase my 1st home.  I've talked with MCM over the phone, and they've sent me a fax containing 40% off the balance.  There is a date listed on when this settlement must take place, and it's listed for the same day (today).  There is lingo at the bottom in fine print saying "*your credit report will not be updated if the federal reporitng period has expired, or we have not previously reported on this account."  After searching in Google and other boards, including this one, most say not to pay it and it will inadvertinly hurt my credit score.  Im a hard working dad w/ 4 kids, and barely have enough time to get from my job to my home, then cook dinner for all kids, do homework, give baths, read books, and bed time.  The short version is that finding time to write letters, and followup letters, is demanding on my already busy lifestyle.  I just need some advice and a place to start especially with this recent settlement letter.

Help!?

Thank you.

[llecs]

Welcome to the forums!

I'd suggest reading the following:

Common Abbreviations

Credit Scoring 101 - great for knowing what is in your credit score and to see how your score is impacted.

What Steps Do I Take - great for learning the repair process.

and Example letters - PFDs, GWs, DVs, etc.

Since paying off a CA won't help your credit, why not try sending a PFD for the same amount?

[Matthew_Foley]

Thank you for the info.  I have been reading and catching up on the abbrevations, as well furthering my knowledge from these boards, as well your links from your post. 

I have a question, and maybe just a confirmation, I live in PA, and the SOL is 4 years, correct?  I've ran a credit report for all 3 agencies yesterday and I accidentally left it at home.  Later today, I'll try to dig up the copy online and perhaps confirm but in the report, I couldn't locate the DOFD.  It was an experian report.  Does anyone know if by me making a phone call yesterday, restart the SOL or trigger anything with MCM?  thank you for your expertice and assistance with direction.

[tld409]

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@Matthew_Foley wrote:

Thank you for the info.  I have been reading and catching up on the abbrevations, as well furthering my knowledge from these boards, as well your links from your post. 

I have a question, and maybe just a confirmation, I live in PA, and the SOL is 4 years, correct?  I've ran a credit report for all 3 agencies yesterday and I accidentally left it at home.  Later today, I'll try to dig up the copy online and perhaps confirm but in the report, I couldn't locate the DOFD.  It was an experian report.  Does anyone know if by me making a phone call yesterday, restart the SOL or trigger anything with MCM?  thank you for your expertice and assistance with direction.

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I believe the SOL for PA is 7 years. What ever you do, do not agree to pay or begin paying until you have an agreement in writing from MCM. If you settle, make sure that they agree in writing that the account is setted in full.  

[llecs]

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@Matthew_Foley wrote:

Thank you for the info.  I have been reading and catching up on the abbrevations, as well furthering my knowledge from these boards, as well your links from your post. 

I have a question, and maybe just a confirmation, I live in PA, and the SOL is 4 years, correct?  I've ran a credit report for all 3 agencies yesterday and I accidentally left it at home.  Later today, I'll try to dig up the copy online and perhaps confirm but in the report, I couldn't locate the DOFD.  It was an experian report.  Does anyone know if by me making a phone call yesterday, restart the SOL or trigger anything with MCM?  thank you for your expertice and assistance with direction.

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The SOL varies by debt type. It's 4 yrs {in PA} for most debt types (sect. 5521 onwards). http://www.legis.state.pa.us/WU01/LI/LI/CT/HTM/42/42.HTM

In some states, admitting to the debt can reset SOL but is usually requires something in writing from you. The above laws spell out what tolls SOL. I didn't look it up for PA.