Hey everyone,
So as the title suggests I have a couple questions about credit. But first I need to get a situation explained.
Around when I was 17, I started a plan with Verizon with my sister. Our intentions was to get the iPhone 6 but couldn't do that because the phones were of course on back order. So me and my sister, and my mother was also present, went to an actual Verizon Wireless store (not an authorized retailer) and went to explain our situation to them in person. We emphasized that we didn't want to be paying for a phone bill if we didn't have any phones. Typically, we had preordered the iPhone but our orders kept canceling and we were just trying to make sure we got our phones. But we told them we didn't want to not have a phone. I had a job and I took the bus, so I felt it was imperative for me to have something while we waited for our actual phones to get here. They gave us iPhone 5c's. I made sure to ask them what was the catch with the loaner phone, meaning when would we have to give the phones back to them once we got our iPhone 6 in the mail. They told us verbatim, "You actually can keep them. How we have it set up on your account is like you're waiting for an upgrade. So you get to keep your iPhone 5c along with the iPhone 6." It's December, my phone has been with me for 2 months or so, and my bill is paid. I get an email for the statement in December and the bill is at a whooping $1,000+! Naturally I call and try to figure out why my bill is so (**bleep**) high, and it took me 2 operators to be told that I'm being charged for my iPhone 5c's. I then explain to my operator that it's strange I'm being charged when I was told it wasn't going to be an issue. She said that I was being charged $400 something for both iPhone 5cs and that my best option is just to pay it out. Of course, unsatisfied with what I'm told and this ridiculous bill. I call again and get someone who supervises over the operators on the line and they listen to my story and asks what store I went to and I gave them the store number and they got the manager of the store I went to on the phone and explained to her what happened. She asks me do I remember the name of the employee who serviced me and I pulled up the email and she says the name sounds unfamiliar. I tell her I can give her whatever she needs but this is the name that's on my receipt. The manager does further research comes back and tells me, "Oh he was a summer internship." He actually had just started working there when you came. He's no longer with us." With that, I was like it still doesn't change the fact that he told me I wasn't going to have to return the phones. I would give the phones back but based on what I was told at the time, I sold the phones and invested it into my senior year. Things like my cap and gown, prom, and all of that. She tells me she's sorry but I still need to pay the dues or return the phones. I was like neither is possible, can't you at least accommodate me since I was misinformed and not even given a single heads up about having to return the phones? She says no. I tell her that I will not be paying the bill and switched from them to a prepaid service. Long story longer, it's been about 3 years since I left Verizon and that $1000+ turned into $2000+. It hasn't been increasing at all ever since I terminated my service with Verizon.
My question is would it be smart to pay this debt, it's been sent to a collection agency and I can probably get some leeway with them on bringing the cost down and being put on a payment plan. But the reason I hesitate from doing that is because I've read on multiple places that even paying off a delinquent debt won't doing anything to your credit. I've tried to approved for small loans ($5000 and lower) to get a car and the results are the same. Because of this delinquent debt I'm told that I can't take a loan out. What would you do in this situation? I've already tried talking to Verizon about this and they are unwilling to budge on this at all, so that isn't even an option anymore. I don't want to pay this off and my credit not begin to recover even a little or god forbid get worse because I paid it.
