NCO Financial

[Anonymous]

Hello all,

  I've been paying down revolving debt and watching my credit closely since it's something I've been bad at doing. My credit is ok, about 750 with only one derogatory 30-day late from about two years ago. Other than that my credit is clean (minus the 20% utilization that I am working to get down to around 1%). Anyways, was sorting through my files and I stumbled across a letter from a little over two years ago that I had forgotten about. It was a debt collection letter from NCO Financial requesting that I pay $299 for canceling my ADT security service. This does not show on my CR and I have received no other calls or letters from them since that time. My question is...what should I do with this? The letter reads:

"The named creditor has placed this account with our office for collection.  It is important that you forward payment in full.

If you choose not to respond to this notification, we will assign your account to a collector with instructions to collect the balance.

To assure proper credit, please put our internal account number XXXXXX on your check or money order and enclose the lower portion of this letter, or a copy thereof, with your payment.  If you need to speak to a representative, contact us at 800-477-1827.

Returned checks may be subject to the maximum fees allowed by your state.  You may also make payment by visiting us online at www.ncofinancial.com.  Your unique registration code is XXXXXXXX-XXXXXX.  To receive future notices for the account(s) by e-mail, visit www.ncofinancial.com for details.

Unless you notify this office within 30 days after receiving this notice that you dispute the validity of the debt or any portion thereof, this office will assume the debt is valid.  If you notify this office within 30 days from receiving this notice, this office will obtain verification of the debt or obtain a copy of a judgment and mail you a copy of such judgment or verification.  If you request this office in writing within 30 days after receiving this notice, this office will provide you with the name and address of the original creditor, if different from the current creditor.

This is an attempt to collect a debt.  Any information obtained will be used for that purpose.  This is a communication from a debt collector."

No mention that they have reported to any of the credit agencies in the letter as you can see. Not on the report and zero communication. 

Thanks again,

Brandon

[RobertEG]

Two items to consider:

What is the date that you became delinquent on the debt?

Even if they should decide at any time to report their collection, they must provide the DOFD to the CRA.

If the DOFD is more than 7 years plus 180 days ago, then the CRA cannot include the collection in any normal credit report they issue.

What is the SOL for your state?

If the statute of limitations on the debt has expired, then they cannot obtain a judgment

[Anonymous]

Ok, to answer your question. I can say that it has been less than 7 years + 180 days. I believe that I cancelled my ADT service 6 months prior to the date of the letter. That would put the delinquency date at or around the 1st month of 2014. So, a little over two years ago. 

As to the SOL for my state. For Alabama it states the following:

Collection of debt on account - 1). 6 years stated liquidated account or 2). 3 years open unliquidated account.

[RobertEG]

I presume you signed a contract with ADT.

If that is the case, they will likely assert the written contract SOL provision, which is 6 years in Alabama.

Keep an eye out for inquires on your credit report, which will indicate that they be making a determination as to bringing a lawsuit.

They may make a soft pull, thus concealing it from normal credit reports you usually obtain, which normally show only hard pulls.

Check annualcreditreport.com for soft pulls.

[JustinA]

NCO was an easy removal after paying off. I almost forgot about them

[Anonymous]

Ok, so I pulled my Transunion report and there appears to be a soft pull from Transworld Systems from August 2015. I guess one of my questions is if this is not showing on my CU and I contact them and pay this will my CR be updated with this derogatory mark? I find it curious that aside from this letter dated 2+ years ago that no other contact has been made by them. At this point I'm not really trying to avoid this payment I just want it to remain off of my CR. 

[RobertEG]

Technically, they could still report after you pay.

They would be reporting that they had collection authority, but would also have to simultaneously report that they collection is closed, paid, with $0 balance.

Debt collectors usually report to CRAs as a collection tool, and dont take the time or effort to report after they no longer have a business need to report.

Thus, it is unlikely that they will report.

But you may not be comfortable with "unlikely."

You can always at least get their oral agreement to a "pay for NOT reporitng."

[Anonymous]

I'll reach out to them and play that card since this seems to be the last thing looming out there that could cause issues with my CR. I'd rather not have them out in the unknown.