CO on report, past SOL. OC will not accept PFD. Pay anyway or blow them off?

[cahiatt]

Here is one I can't decide on what to do. Trying to clean up the last mark on my wife's credit report. From nothing more than an general mistake my wife has a charge off from Macy's. It is for about $150. I'm honestly not entirely sure it is legitimate but throught it would be just as easy to offer a pay for delete on it. DOFD on the item is July, 2007 so we are past four years SOL per Georgia law.

I've offered a PFD on the matter but they won't budge. You think I should go ahead and pay it anyway to show as a paid charge off or just tell them to stuff it and let it drop off by itself after three more years. Since it is over four years old now anyway I honestly don't think paying it is going to help her credit much if at all.

Thoughts?

[LIGHTNIN]

IMO, it would be better to show a paid CO, then to have the OC to assign or sell the debt to a CA.

Then you would have to deal with getting the CA deleted, if it were to show up on the CR's.

[cahiatt]

I thoght about just paying it. But the age of it, amount and since it is just a store card I can't see if helping her credit at all even if paid. We don't have much financial incentive to do so. Since it is past SOL I figured we could just DV to any collection. If they actually do show some validity to it I would just advise that they are past SOL and are in fact S.O.L....

[LIGHTNIN]

I understand paying the debt will not help her credit, but by not paying the debt could cause some heartaches.

Examples of heartaches.......

CA may show up on CR results in score drop.

CA still has 3.5yrs left to report on her CR.

Daily phone calls from the CA.

May cause auto and home insurance to increase.

The OC or a CA (if one is assigned or bought the debt) can still summons DW to court, yes I know it's passed SOL.

But they still can take you to court,maybe sit there all day and lose a days pay over it.

I am not trying to be mean, just letting you know what could happen if the debt was not paid.

Well in the end it's up you our DW, on what to do about the debt.

[llecs]

Ditto to paying it. I've seen examples of Macys deleting after receiving a payoff and/or a GW after payment.

If you think it isn't yours, then obviously don't pay it! But call the police and get it off due to ID theft. If you think it could be yours, then contact Macys and ask for a detailed billing of how they came up with the balance. They'll hook you up.

But ditto....it'll keep reporting. A CA could report dropping score even more. Ditto to the annoying collections, even past the 7 yr CRTP. They can still try to sue even if past SOL. If you have any open accounts now, you could get hit with AA for the added baddie(s), denial for credit, etc. Besides, if you know it is yours, then you'd want to do the right thing, right?

[Anonymous]

IMO, anytime you (not you personally - just "you" in general) have the ability to pay a debt you incurred, it's the right thing to do - whether or not it impacts a FICO score or benefits you personally.  FICO's are just one small piece of the financial history pie.  And I always sleep better if I gave it my very best - including repaying what I owe someone.

Asking for a history is very wise if you are unsure it is a valid debt.  But, if your life is anything like mine - in my case it would probably be valid.  My memory is shorter than my creditors - and they usually keep accurate records.  I've yet to have an error on my Macy's card.  But again, if you're unsure, always ask for documentation.

Congrats on taking care of your last black mark - taking care of it honestly is going to feel absolutely great!!!  I'll vote for 100 "I did the right thing" points - even if FICO be forgotten.

[ptkdude]

The SOL in Georgia for credit cards is 6 years, not 4.  Although the law appears to be written as 4 years, the Georgia Court of Appeals ruled in Hill v. American Express that it is 6 years.

[BungalowMo]

For onl;y $150, I'd pay it & wait a bit & send them an email GW letter. 

Even if they don't remove the CO, having an unpaid debt of $150 tells future creditors that if you can't even pay a low balance like that, why should they entertain giving you credit for any amout of money?

Looking at that could be a denial waiting to happen.

[sassymomof2]

+1. Peace of mind is priceless. I would pay them & send GW letters.