Question about paying a collection

[Anne1208]

I think it is COMPLETELY IDIOTIC that PAYING a collection would reduce your score.  You'd think that collection agencies would dispute that practice because my guess is that they'd get a few more people paying if the payment of the account either didn't affect your score or raised it.

For what it's worth, my husband had three medical collections on his account (while they can only stay on your report for 7 years under the FCRA, there is no statute of limitations on the collection of medical debts, so they could collect them indefinitely). He paid them off and there was about a 40 point drop. That was January. He's bounced back and then some since then. I have read everywhere that paying off CAs doesnt raise your score, but FICO shows things like "April 2015 - balance change" $800 --> $0 on a CA and shows an up arrow with 20 points next to it, implying that the CA's change ftrom 800 to 0 helped. like, it showed simply as ambiguous "collection activity" in january when he paid it, and dropped, but speciailly as "change in balance" in april and it went up. who knows.

[Anonymous]

That's great to know Anne. I was afraid it would take a year to rebound. Hopefully I will have similar results to that of your husband's.

[Anonymous]

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@Anonymous wrote:
My experience with Afni.
Sprint charge off back in 2010.
Paid Afni in 2012.
Didn't know anything about PFD back then but it was deleted from TU when paid.
Deleted from Ex in 2014. Weird.
Called and asked them to remove from Equifax since it was deleted. Had to get snappy with the rep but she sent a request through the system (forgot what it's called). Was removed a few days later. All I said was an agreement was set up when I paid to delete from credit report.

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Yes I've read posts where this happens. However. If I'm not so lucky I'm stuck with a major point decrease. 

[Anonymous]

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@Anne1208 wrote:

I think it is COMPLETELY IDIOTIC that PAYING a collection would reduce your score.  You'd think that collection agencies would dispute that practice because my guess is that they'd get a few more people paying if the payment of the account either didn't affect your score or raised it.

For what it's worth, my husband had three medical collections on his account (while they can only stay on your report for 7 years under the FCRA, there is no statute of limitations on the collection of medical debts, so they could collect them indefinitely). He paid them off and there was about a 40 point drop. That was January. He's bounced back and then some since then. I have read everywhere that paying off CAs doesnt raise your score, but FICO shows things like "April 2015 - balance change" $800 --> $0 on a CA and shows an up arrow with 20 points next to it, implying that the CA's change ftrom 800 to 0 helped. like, it showed simply as ambiguous "collection activity" in january when he paid it, and dropped, but speciailly as "change in balance" in april and it went up. who knows.

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Yes I agree!

[gdale6]

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@Anne1208 wrote:

I think it is COMPLETELY IDIOTIC that PAYING a collection would reduce your score.  You'd think that collection agencies would dispute that practice because my guess is that they'd get a few more people paying if the payment of the account either didn't affect your score or raised it.

For what it's worth, my husband had three medical collections on his account (while they can only stay on your report for 7 years under the FCRA, there is no statute of limitations on the collection of medical debts, so they could collect them indefinitely). He paid them off and there was about a 40 point drop. That was January. He's bounced back and then some since then. I have read everywhere that paying off CAs doesnt raise your score, but FICO shows things like "April 2015 - balance change" $800 --> $0 on a CA and shows an up arrow with 20 points next to it, implying that the CA's change ftrom 800 to 0 helped. like, it showed simply as ambiguous "collection activity" in january when he paid it, and dropped, but speciailly as "change in balance" in april and it went up. who knows.

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Where did you get this information?  Medical debts are considered written contracts for purposes of SOL. The SOL is long in a few states on written contracts but I know of no state where there is no SOL on these.

[Anonymous]

That's weird. I recently paid off my last two collections. My FICO score barely moved (1-4 point increases across the CRA's), but at least I didn't see any drop. Must be a case-by-case thing.

Side note: my vantage score skyrocketed about 60 points

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:
My experience with Afni.
Sprint charge off back in 2010.
Paid Afni in 2012.
Didn't know anything about PFD back then but it was deleted from TU when paid.
Deleted from Ex in 2014. Weird.
Called and asked them to remove from Equifax since it was deleted. Had to get snappy with the rep but she sent a request through the system (forgot what it's called). Was removed a few days later. All I said was an agreement was set up when I paid to delete from credit report.

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Yes I've read posts where this happens. However. If I'm not so lucky I'm stuck with a major point decrease. 

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sorry that happened to you..my scores didnt go down but the jump wasnt significant either

[Anonymous]

I would not dispute it. If it hasn't reported in 3 years then that item is done doing any more damage to your score. You should be patient and just let it fall off. When it does, you should see some points, not sure how many though because you will probably be re-bucketed.

[Anonymous]

This is very good information.  My daughter has a medical collection for 5k.  I told her to pay it with a cc.  I had no idea they can stay there forever.  I will make sure she has that paid.  Just so wrong that the law would allow this since it's something you cannot help.