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Can paying or settling old debt increase your risk of lawsuits?

New Contributor

Can paying or settling old debt increase your risk of lawsuits?

First of all thank you to everyone on this forum for all the great information! I wanted to ask, if you start setlling and paying off old debt, does this increase the likelyhood of other creditors that have been quiet for awhile coming after you if they start seeing paid off or settled accounts  when they hard pull or soft pull your reports? Or am I just paranoid? 

 

 

Starting Scores: 9/19/2012 EQ 613 / TU 526 / EX 543
Current Scores: EQ 716 TU 724 EX 724 Goal Scores: 700
Message 1 of 9
8 REPLIES
Regular Contributor

Re: Can paying or settling old debt increase your risk of lawsuits?

I think it does increase the odds, yes. I would suggest opting out. I cannot say for certain that will help, but I "think" it might. 

Message 2 of 9
Moderator Emeritus

Re: Can paying or settling old debt increase your risk of lawsuits?

Definitely opt out!  If you don't, the CRAs sell the CAs information on those that are rebuilding their credit or applying for mortgages unless you do opt out.

Starting Score: 504
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EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
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Current scores after adding $81K in CLs and 2 new cars since July 2013
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Message 3 of 9
Regular Contributor

Re: Can paying or settling old debt increase your risk of lawsuits?

Message 4 of 9
Established Contributor

Re: Can paying or settling old debt increase your risk of lawsuits?


igids1 wrote:

Inquiring minds may want to read....

 

http://www.experian.com/consumer-information/debt-collection.html

 

 

http://www.transunion.com/corporate/business/solutions/collections/first-party_triggers-for-collecti...


Wow. It's interesting that the CRA's which are ostensibly neutral providers of information, proactively help creditors in their collection efforts👀

Starting Score:EQ 586 TU 527 EX 532
Current Score: EQ 655 TU 668 EX 669
Goal Score: 760- Last app 8/9/17


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Message 5 of 9
Valued Contributor

Re: Can paying or settling old debt increase your risk of lawsuits?


igids1 wrote:

Inquiring minds may want to read....

 

http://www.experian.com/consumer-information/debt-collection.html

 

 

http://www.transunion.com/corporate/business/solutions/collections/first-party_triggers-for-collecti...


Good stuff


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Message 6 of 9
Valued Contributor

Re: Can paying or settling old debt increase your risk of lawsuits?

Sometimes paying off old debt hurts your score more. Have you tried PFD?


Starting Score: 0
Current Score: TR??FICOEQ ?? FICO
Goal Score: 760

Lowes7,000 Discover More 2800. Jcpenny 6,000
Chase freedom 800 Never take NO for an answer!!
Message 7 of 9
New Contributor

Re: Can paying or settling old debt increase your risk of lawsuits?

Thanks for all the good responses, and great link to the information about CRAs and collections. Yes Annielorie, I am trying PDFs. My main concern and reason for my original  post was that while I am trying to pay all the debt I legitimately owe, I do have one large collection account that is still in SOL which is for debt that I do not agree with. I was concerned if paying all my legimate debt could trigger collection activity on this one illegitmate collection. I think i have the answer now. Thanks again everyone! 

Starting Scores: 9/19/2012 EQ 613 / TU 526 / EX 543
Current Scores: EQ 716 TU 724 EX 724 Goal Scores: 700
Message 8 of 9
Highlighted
Valued Contributor

Re: Can paying or settling old debt increase your risk of lawsuits?

Shogun,

 

Opting out will not work for an existing creditor with whom the consumer has an account.  I will use a credit card account as an example  per the card holder agreement which was agrred to when the account was opend  can  review your credit.

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
Message 9 of 9