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Need Advice on Paying Collection

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Ash85
New Member

Need Advice on Paying Collection

Hi everyone,

 

I have been working hard over the past 2 years paying off any negative information on my credit report. My equiifax is now at a 655. I have one negative collection currently on my credit from 2008 but wasn't reported until 2010. It is for $9919 to Avalon Bay( signed my name to a lease for my bf at the time and he never paid....BIG MISTAKE I know) The account is currently at Fair Collections & Outsourcing and I have contacted them to try to set up a payment arangement. They informed me that they did NOT purchase the account from Avalon Bay so they can only agree to the terms set my Avalon Bay and would only accept a payment of $6500 and would report the account as settled. My question is would it be in my best interest to have this account show as settled on my credit report and by paying this debt would it help improve my score at all? I do not want to pay $6500 and than have my score go down. Any advice would be greatly appreciated! THANK YOU!!

 

-Ash

Message 1 of 7
6 REPLIES 6
baller4life
Super Contributor

Re: Need Advice on Paying Collection

The only way I would pay it is with a pfd. Without it yes your score would likely go down because your DOLA is updated. If 2008 is DOFD then it is due to fall off next year. If it's past the SOL, I'm not sure I would doing anything unless they offer a pfd and you need it gone NOW. Personally, I wouldn't pay anymore than 50% of original bal as a settlement with it being so old.
Message 2 of 7
Ash85
New Member

Re: Need Advice on Paying Collection

Thanks for your response. Unforunately I asked if they would do a PFD and they said they wouldnt.  I was under the impression that it would fall off next year since the date of first deliquent was 2008 but the collection agency told me it went by the date that it was first reported so it would remain until 2017. I'm sure they would say anything to try to receive payment. I am trying to rent an apartment and have been denied because this is showing unpaid. 

Message 3 of 7
Shogun
Moderator Emeritus

Re: Need Advice on Paying Collection


@Ash85 wrote:

Thanks for your response. Unforunately I asked if they would do a PFD and they said they wouldnt.  I was under the impression that it would fall off next year since the date of first deliquent was 2008 but the collection agency told me it went by the date that it was first reported so it would remain until 2017. I'm sure they would say anything to try to receive payment. I am trying to rent an apartment and have been denied because this is showing unpaid. 


The collection company lied to you.  Did I say that bluntly enough.  Yes, they lied.  When it reported has absolutely nothing to do with the CRTP.  It went bad in 2008, that started the clock.  If it is past the SOL, I'd offer them less than $1000 for the PFD.  If they give you grief over the fall off date, I'd file a CFPB complaint and then send them an Intent to Sue Letter.  Go down to your local courthouse and file a small claim suit for $1000 for FCRA violations.

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.
Message 4 of 7
baller4life
Super Contributor

Re: Need Advice on Paying Collection

Yep they straight LIED to you!! Wow, the nerve of these CAs. Smiley Mad
Message 5 of 7
Ash85
New Member

Re: Need Advice on Paying Collection

Wow I can't say I am surprised! I have even tried disputing it with experian, equifax, and transunion they all have the date listed as 2010 and had no luck. I'm sorry what exacly is a CFPB letter?  Im going to reach out to the orginal creditor Avalon Bay today and see if that gets me anywhere. Thnx!

Message 6 of 7
Shogun
Moderator Emeritus

Re: Need Advice on Paying Collection

The DoFD is set by the OC, never the CA.  It is when the account went in arrears and was never brought current.  Now you say it first went delinquent in 2008, was it ever brought current?  Did you make payments after that date?  If you did, then that could change the DoFD.  If you didn't then the DoFD would be set to 2008.

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.
Message 7 of 7
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