Collections issue

[Anonymous]

Made a deal with the collection agency to pay half the amount. Owed around $3400 and paid $1700. Two months after I paid my credit scores went down. Current scores are Equifax-629, Transunion-648 and Experian-588. My scores were higher before I paid half the balance. Now credit reports show past due balances on a payment plus the other half that's due. ugh!! Makes no sense to me since I have a letter stating the account was settled for the agreed amount. Can understand the overall balance but not the past due monthly balances of $51 on one credit report and $359 on the other. Disputed with all three credit reports and they will not change it. Should I just pay it off? I'm afraid if I pay it off it will put it back on the radar and lower my scores AGAIN.  Guess I'm thinking this because before I paid my credit scores were higher and after I paid they dropped a large amount.  Never thought paying a settled amount would lower it. Looking to buy a house soon and trying to get my credit scores up. Hope all this makes sense.

[guiness56]

Where are your scores from?  EX does not make their FICO available to the consumer and haven't since Feb 2009.

When you settled was it to be considered settled in full?  If not they can continue to try to collect the rest.  If you have a letter saying the settlement was considered payment in full, they cannot.

Since you don't owe monthly amounts to a CA they can't show that you do and should not show a past due payment with them.

Paying a 3rd party collection agency should not lower your score.  If it does there is something not reporting correctly.