topic Re: Collection Question in Rebuilding Your Credit

Collection Question

gjmmgmnt — Sat, 29 Jun 2013 20:32:26 GMT

My question is that I have an account that is in collections and the 7 year statute is dawning upon me. I arranged a payment plan and a few payments away from paying it off. I have experienced paying off an account once before and it plummeted more score. Should I continue with paying the last few payments? will it drop my score again when paid off? Should I speak with colection agency in regards to a pay for delete or is it too late? Not sure whats the best course of measure now that I'm so close in paying it off but also realizing this will be dropping off shortly and not wanting to ding my score anyfurther. Thank you.

Re: Collection Question

DaBears — Sat, 29 Jun 2013 20:52:09 GMT

Hi gjmmgmnt and welcome to the forums!!! You can offer a PFD at anytime. Paying off a collection should not lower your score. Altho I have seen it done before. Just because it is coming up to the 7 yr mark to fall off, the unpaid debt will be out there forever and they can continue to try and collect on it. Me personally I love having a clean credit report. I have left a chapter 7 which will fall off in March of 14' Everytime I paid off a collection and keeping my current credit cards at a low UTIL and making on time payments my score have risen.

DaBears!

Re: Collection Question

FICO_addiction — Sun, 30 Jun 2013 00:18:23 GMT

let it drop off and tell them that the number they are calling is a cell phone and to take it off their collection list....if it truly has been close to seven years and you have no judgement of suit filed against you.... then the statute of limitations is long past(ie...nothin thay can do but beg you to pay)hope that helps. but yes your score will most likely drop slightly(like 4-7 point if you pay it off...usually).

Re: Collection Question

Anonymous — Sun, 30 Jun 2013 00:21:42 GMT

Unpaid debt follows you forever. If you ever want a mortgage will have to disclose unpaid debt and they may make you pay it.

Paying off a collections normally has no impact, either up or down, on your score.

Re: Collection Question

FICO_addiction — Sun, 30 Jun 2013 00:23:34 GMT

oh and most companies will tell you it is against policy to delete it if it is a valid debt...best way to get it off sooner is ask for validation of debt(by certified mail...address of collecter should be on trans or equifax) if they cant show you your signature on paper for valid days of the debt or dont respond within 30 days in writting the by law(google it) the have to remove the claim from your file.

Re: Collection Question

Anonymous — Sun, 30 Jun 2013 00:29:06 GMT

A CA doesn't have any amount of time to respond to a DV. They just cannot continue collection activity until they do. FDCPA 809 (b).

Re: Collection Question

DaBears — Sun, 30 Jun 2013 00:38:05 GMT

@FICO_addiction wrote:
let it drop off and tell them that the number they are calling is a cell phone and to take it off their collection list....if it truly has been close to seven years and you have no judgement of suit filed against you.... then the statute of limitations is long past(ie...nothin thay can do but beg you to pay)hope that helps. but yes your score will most likely drop slightly(like 4-7 point if you pay it off...usually).

@I disagree, that is not good adivse we give here on myFICO!!!!! +1 @ guiness. As guiness stated unpaid debt does not go away. If you app for a mortgage or life insurance of $150K or more they will see the unpaid debt. If you get a job that pay $75K or more they will see it. FICO_addiction please read the blue stickies under my posts.

Re: Collection Question

FICO_addiction — Sun, 30 Jun 2013 00:57:55 GMT

This is all state based. You may want to check your state laws first....Alabama for one, has statute of limitations for debt collection and credit reporting. alabama law(Section 6-2-33 and 6-2-34), and depending, again, on your local laws, unpaid can and probably will "go away." May not be the best thing to do but he's this close to it falling off...it will not "FOLLOW" him anywhere...except right off the end of his credit report

Re: Collection Question

FICO_addiction — Sun, 30 Jun 2013 01:01:17 GMT

this is so untrue! unpaid debt will not follow you foreve.r i ruined my credit when i was young(18) took seven years but guess what no trace of it in sight. This may be due to local laws, but i have a mortgage now and plenty of credit accounts and cards(which are all below 20% util).

Re: Collection Question

gjmmgmnt — Sun, 30 Jun 2013 01:08:32 GMT

Thank you all for your responses. This helped out a lot!

Re: Collection Question

FICO_addiction — Sun, 30 Jun 2013 01:08:37 GMT

gjmmgmnt do what you think is best...don't buy into what evryone else wants you to do...if you wanna pay the debt pay it if it makes you feel better....just know it will not follow you forever, if you dont pay it.....sometime i think these guys work for the cc's and debt collectors() We've all been there some people just like sittin on their, higher than thou, horses...sayin "oh you'd better not do that". THEY DON'T KNOW FOR SURE, and the truth is no one does. Best of luck to ya, mate!

Re: Collection Question

DaBears — Sun, 30 Jun 2013 01:12:00 GMT

Wisconsin and MS are the only two states that allow the debts to expire and will not follow if you reside in those states. You probably have had the dunning notices sent to you and ignored them, thats on you!!!! other people that come here want to take care of their unpaid debt and make right. Future reference you might want to talk to a consumer attorney so they can explain in detail what the law is. We are here to give good and actual facts of what the FCRA and FDCPA states.

Community Leader,

DaBears

Re: Collection Question

Anonymous — Sun, 30 Jun 2013 01:16:03 GMT

@FICO_addiction wrote:
@gjmmgmnt do what you think is best...don't buy into what evryone else wants you to do...if you wanna pay the debt pay it if it makes you feel better....just know it will not follow you forever, if you dont pay it.....sometime i think these guys work for the cc's and debt collectors() We've all been there some people just like sittin on their, higher than thou, horses...sayin "oh you'd better not do that". THEY DON'T KNOW FOR SURE, and the truth is no one does. Best of luck to ya, mate!

Yes, it will follow you forever. Why do you say it doesn't. What proof do you have?

State statutes determine whether or not the debt expires with the SOL and there are only 2 of those.

Re: Collection Question

Anonymous — Sun, 30 Jun 2013 03:15:47 GMT

FICO_addiction wrote:

No, but he IS a Community Leader and should be respected.  What he said was the truth.  Whether you like it or not.
 
Please refrain from those types of comments.
 
First warning.

Re: Collection Question

FICO_addiction — Sun, 30 Jun 2013 01:24:23 GMT

oh and you might wanna do some more research before you make statements, as facts are actually different....google alabama statue of limitations or alabama law statute of limitations of debt collection. k boss

Re: Collection Question

FICO_addiction — Sun, 30 Jun 2013 01:28:18 GMT

guiness56 I could really care less about your "warnings" as i have not techically violated any of the sites rules.

consider this YOUR first warning, as I consider you warning, threatening and harrassing

your turn boss

Re: Collection Question

DaBears — Sun, 30 Jun 2013 01:29:10 GMT

I will skip the second warning!!!! Your time is up. It will not be tolerated on myFico.com

Re: Collection Question

FICO_addiction — Sun, 30 Jun 2013 01:39:15 GMT

ok boss. im still here. and have reported YOU for harrassment...oh no guess your 2,000 posts will have to wait too.

Re: Collection Question

FICO_addiction — Sun, 30 Jun 2013 01:41:18 GMT

Oh NOOOOOOO...I'MMMM MELLTINGGG OOHHHH WHHAT A WOORRRLD....WHHAT A WORRLDD!

Re: Collection Question

DaBears — Sun, 30 Jun 2013 01:46:49 GMT

Attacks, including “Flaming” another user or entity in such a way as to incite or perpetuate an argument or conflict; is a violation of the TOS of myFICO