topic Re: Should I pay a CA? in Rebuilding Your Credit

Should I pay a CA?

Anonymous — Thu, 20 Jan 2011 21:13:23 GMT

I received a settlement offer in the mail today for an account that was charged off in Dec. 2004. The CO was sold to a CA and both the OC and CA are reporting on my credit report. A third party CA sent the settlement letter and they are not listed on my credit report. The original balance is $720 and they are offering to settle for $150. Should I pay this? SOL in my state is 5 years so I can't really be sued for this balance and in Dec 2011 it will be 7 years since the account was charged off so it should be falling off my report then. Because of that, it seems like I shouldn't pay it due to its age, and I fear that the remaining balance could be resold to a different CA. However, I am hoping to start the mortgage process late summer/early fall, and if that needs to be paid before I can get approved it seems like I should pay it now. Any thoughts? Thanks!

Re: Should I pay a CA?

Anonymous — Thu, 20 Jan 2011 22:16:53 GMT

I'd do it - but I'd send a DV first and then only pay it if they agree to a PfD. Otherwise, I'd leave it (and talk to my lender about it).

Re: Should I pay a CA?

Anonymous — Fri, 21 Jan 2011 02:39:35 GMT

I agree with mauve, I just got a job in collections. The commissions they earn are ridiculous and they are more than willing to take a payment for deletion. Get it in writing... cause anything said over the phone is a louzy contract handled by teenagers(young immature adults) dressing casually in an office while cracking jokes at each other.

Re: Should I pay a CA?

RobertEG — Fri, 21 Jan 2011 06:24:24 GMT

What is the date of first delinquency (DOFD) on the OC account that led up to both the charge-off by the OC and the reporting of a CA by the debt collector?

If it was charged-off in 12/2004, chances are that the DOFD was at least as far back as 6/2004. Collections and chaarge offs both drop at 7-years plus 180-days from the DOFD. The charge=off date is meaningless.

Just paying it wont result in any CR deletion before its normal 7 1/2 date from DOFD, unless you obtain a prior PFD acceptance from the debt collector.

Do you really need this CA deleted before the end of 2011?

Re: Should I pay a CA?

Anonymous — Fri, 21 Jan 2011 14:12:02 GMT

Robert, I think OP is considering getting rid of it before the end of 2011 because OP wants to get a mortgage some time this summer. I think it's worth sending the DV (I know you don't agree about the DV part) and following up with a PFD if they get a response. I wouldn't pay it to a CA without a PFD, though, unless my lender insisted.

Re: Should I pay a CA?

AndySoCal — Sat, 22 Jan 2011 03:24:34 GMT

If you pay it and the account still reports mostly likely it will hurt your score.

Re: Should I pay a CA?

Anonymous — Sun, 23 Jan 2011 19:35:54 GMT

Would I have to contact the original CA to do a PFD since the settlement offer came from a different CA that is not listed on my credit report?

Re: Should I pay a CA?

Anonymous — Mon, 24 Jan 2011 00:40:49 GMT

One CA and the OC can report for each debt, is my understanding. Sending the DV should establish who can take payment.

Re: Should I pay a CA?

Anonymous — Mon, 24 Jan 2011 02:15:45 GMT

Cool. Much thanks everyone! Looks like I will be DVing them.