PRA collection, Late payments

[Dynamo24]

Hi all, I was wondering how to go about dealing with PRA. I currently have a collection w/ them at $1852. DOFD was 7/2010. SOL in my state is 5 years. Should I even bother dealing with these mooks or just let it fall off next Summer? Pretty sure I am safe from law suit but I would like to get this off my report sooner than later. Would a super lowball offer for PFD be worth it?

Also, I've got some other significant lates on my CR. 30-120d lates and quite a few of them. Anyone have a recommendation or tips on having success with GW letters to get these removed? Hoping to rehab my CR over the next year or two before trying to purchase a home. Thanks in advance for any advice. 

[RobertEG]

What are your expected credit needs in the next few years?

Letting the collection become excluded from your credit report only hides the unpaid, delinquent debt from disclosure by a simple pull of your credit report, and thus seeing an unpaid collection.  The debt remains unpaid.  If your future credit needs will include an amount of credit where the creditor is likely to ask for disclosure of any unpaid delinquent debt, such as a mortgage, it may still be an issue.

I would certainly make any PFD offer that you can afford, but they are usually tough on PFD acceptance.

[Anonymous]

PRA will NOT PFD.

As far as GW for the other derogs, who are the creditors and are they current?

A very SLIGHT chance any mortgage company will ask for a disclosure of any unpaid debt. Chances are it isn't gonna happen.

They are more interested in making sure you have no judgements, liens, or unpaid collections and or chargeoffs showing on your credit reports.

[RonM21]

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@RobertEG wrote:

What are your expected credit needs in the next few years?

Letting the collection become excluded from your credit report only hides the unpaid, delinquent debt from disclosure by a simple pull of your credit report, and thus seeing an unpaid collection.  The debt remains unpaid.  If your future credit needs will include an amount of credit where the creditor is likely to ask for disclosure of any unpaid delinquent debt, such as a mortgage, it may still be an issue.

I would certainly make any PFD offer that you can afford, but they are usually tough on PFD acceptance.

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In this case while putting effort into GW letters can certainly help, I would out as much focus on still paying the unpaid debts, if it can possibly hurt you when getting a mortgage.

[Dynamo24]

As far as the late payments, it is cap 1 and bestbuy/cap 1. These cards are paid and closed. I just am hoping to, over time, get some of the latest dropped, if not all. I know that is incredibly difficult but I still have to try.

I don't mind paying PRA, I just hope to settle for much less than what is owed. Anyone have luck settling their debts for a substantially lower cost than the owed amount? Thanks for the all the advice! 

[Anonymous]

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@Dynamo24 wrote:

As far as the late payments, it is cap 1 and bestbuy/cap 1. These cards are paid and closed. I just am hoping to, over time, get some of the latest dropped, if not all. I know that is incredibly difficult but I still have to try.

I don't mind paying PRA, I just hope to settle for much less than what is owed. Anyone have luck settling their debts for a substantially lower cost than the owed amount? Thanks for the all the advice! 

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Just pick a number, stand your ground and make it clear that once it reaches exclusion there will be no more offers from you to pay it. Eventually someone there with some brains will take your offer, or not.

[Dynamo24]

I've read various numbers on which to give an offer on. Does 25% seem too low/too high for a starting point? Is coming at them with the fact they can't sue me a good strategy? Put in more professional terms, that is. 

[Dynamo24]

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@RobertEG wrote:

What are your expected credit needs in the next few years?

Letting the collection become excluded from your credit report only hides the unpaid, delinquent debt from disclosure by a simple pull of your credit report, and thus seeing an unpaid collection.  The debt remains unpaid.  If your future credit needs will include an amount of credit where the creditor is likely to ask for disclosure of any unpaid delinquent debt, such as a mortgage, it may still be an issue.

I would certainly make any PFD offer that you can afford, but they are usually tough on PFD acceptance.

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Planning on a mortgage in the next 3 years. I am graduating PA school soon and will have a large increase in income, so that won't be the issue, its getting my credit right. Hoping to repair that to a less than cringe inducing sight over the next 12-18 months. I appreciate the advice on paying PRA, I will start negotiating with them next month. If/when I settle, and it gets removed next Summer, will that be something a mortgage company looks into or will reflect negatively on my CR? Again, any advice on a starting settlement would be greatly appreciated. I don't mind standing my ground and waiting them out. 

[RobertEG]

If you settle, then once it becomes excluded from your credit report, there would be no need to disclose it in any mortgage application.

The most a prospective lendor might request is disclosure of any unpaid, delinquent debt.  They are not going to ask about terms of settlement of prior and now discharged debts.