topic Re: Settling a Credit Card Debt in General Credit Topics

Settling a Credit Card Debt

Anonymous — Sun, 06 Apr 2014 13:19:12 GMT

I need some advice. I had a First Premier Credit Card and to this point I never received a letter from any collection agency. This blemish is set to come off of my report in August this year and I just received notice from a collection company that they are trying to collect. My question is....if I pay the collection agency the money does the time start all over again? Will it drop off in August anyway? Right now the debt is still showing from First Premier and the collection agency hasnt placed it on my report. If I call them and settle with the collection agency will that prevent them from placing on my report? I'm just confused as to how it all works.

Re: Settling a Credit Card Debt

RobertEG — Sun, 06 Apr 2014 17:17:30 GMT

The status of the debt as either paid or unpaid is irrelevant to the exclusion of any adverse reporting made by the OC, or any collection that may be reported on the debt.

As for a collection, its exclusion date is based on one an only one date-certain... which is the DOFD on the OC account.

Once 7 years plus 180 days has expired from the DOFD, the collection must be excluded from your credit report. Period.

As for the OC accunt, it wont becoe excluded. What will become excluded are any derogs reported under the account once they have passed their credit report exclusion periods. Any monthly delinquencies reported by the OC become excluded after 7 years from their date of occurence, and any charge-off they have reported would become excluded after 7 years plus 180 days from the DOFD.

After exclusion of derogs from the OC account, if the debt remains unpaid, there will be no reporting of satisfaction of that debt under the OC account, which can still raise questions upon a manual review of your credit report.

Re: Settling a Credit Card Debt

Anonymous — Sun, 06 Apr 2014 17:32:49 GMT

@Anonymous wrote:
I need some advice. I had a First Premier Credit Card and to this point I never received a letter from any collection agency. This blemish is set to come off of my report in August this year and I just received notice from a collection company that they are trying to collect. My question is....if I pay the collection agency the money does the time start all over again? Will it drop off in August anyway? Right now the debt is still showing from First Premier and the collection agency hasnt placed it on my report. If I call them and settle with the collection agency will that prevent them from placing on my report? I'm just confused as to how it all works.

No, paying the CA willl not make the reporting time start again. It too would be removed in Aug if they reported.

Just settling will not prevent them from reporting it. You would need to negotiate an agreement with them to not to report for payment.