Please check the pic for any reporting errors...

[NWintellectual]

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@HigherFico wrote:

What should I do?

Also if I make payments or settle the account, will it update and reflect as a new debt and lower my score???

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Whatever you do, do not agree to monthly payments. Making a payment, if less than the full or accepted settlement balance, WILL restart the SOL and could potentially reset your DOFD clock. All or nothing is your goal here. 

Guiness is right that FICO-wise a collection is a collection is a collection and it will be calculated as such, paid or not just the same. If you can't afford the lump sum now, wait until you can. This is a collection account, the balance isn't likely to change much if you have to wait 3 months vis a vis today.

That said, particularly when applying for anything major (auto, home, higher limit CC, etc), it is very likely the potential creditor will do a manual review of your credit report and not just look at your score. Therefore, if deletion is out of the question, you want to shoot for "PAID IN FULL" rather than "SETTLED FOR LESS". This shows that despite the untimeliness of repayment, you still paid them back in full and didn't "stiff" the creditor (in their eyes) for some of the debt. Either of those statuses will look better than unpaid. For most mortgages, according to these forums, you will have to resolve this matter before underwriting will approve your loan.

[guiness56]

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@NWintellectual wrote:

---

@HigherFico wrote:

What should I do?

Also if I make payments or settle the account, will it update and reflect as a new debt and lower my score???

---

Whatever you do, do not agree to monthly payments. Making a payment, if less than the full or accepted settlement balance, WILL restart the SOL and could potentially reset your DOFD clock. All or nothing is your goal here. 

Guiness is right that FICO-wise a collection is a collection is a collection and it will be calculated as such, paid or not just the same. If you can't afford the lump sum now, wait until you can. This is a collection account, the balance isn't likely to change much if you have to wait 3 months vis a vis today.

That said, particularly when applying for anything major (auto, home, higher limit CC, etc), it is very likely the potential creditor will do a manual review of your credit report and not just look at your score. Therefore, if deletion is out of the question, you want to shoot for "PAID IN FULL" rather than "SETTLED FOR LESS". This shows that despite the untimeliness of repayment, you still paid them back in full and didn't "stiff" the creditor (in their eyes) for some of the debt. Either of those statuses will look better than unpaid. For most mortgages, according to these forums, you will have to resolve this matter before underwriting will approve your loan.

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No, making a payment will only restart the suing SOL.  Nothing changes the DoFD of an account already sent to collections.  It will still be removed based on the DoFD of the OC already reported.

It also depends on your state laws.  There are 18 states where making a payment will not restart the SOL.  It would have to be a written agreement.

[HigherFico]

So what advice? Should I pay it? I finally got my score above 600 and I really want to keep it there

[HigherFico]

Oops...I just saw my advice sorry

[guiness56]

If the account has not been reported for over a year any payment you make will make it appear as a new collection and drop your score.

Have you tried a PFD?

[HigherFico]

I have never sent a PFD because first I sent a DV. From Portfolio I receieved a letter starting wth this:

Re: Verification Information Concerning Portfolio Recovery Associates

Acct Reference/ NUmber:

Seller:

Merchant:

Original Creditor:

The following information is being provided in response to your recent communication concerning the acct references above....At the time of the sale, the seller provided an electronic file of its business records concerning this account. According to the seller's records, there was due and payable from ( My name) to the seller in the sum of $1956.38 with respect to the acct, as of 8/27/2013, there being no known un-credited payments, counterclaims, or offsets against this account at the date if its sale.

Here is a summary of additional information listed in the electronic file:

Acct holders name

Acct holders soc. security # (last 40

Date acct opened with seller

balance at date of Portfolio's purchase

Interest:

Cost/fees:

Then it says if I wish to dispute sent the letter to them...

That is all I received in the letter. I also received a settlement paper to settle for about $300 less or pay it in full. 

I live in Maryland as far as the SOL goes and the updating of dates.

[HigherFico]

Since it says status as of augusts 2013, does that mean it han't reported since august? Should i pay this since it is only one my Equifax report? 

[guiness56]

Yes, that is what it means. 

Your score will probably drop if you make a payment.

[HigherFico]

Thanks,

This is tough. I woud love nothing more than  to keep my money in my pocket but I just don't want it to reappear or turn into a judgement. I need to really find out when the SOL runs out but I don't even want to contact them.