I was scammed into a lease by sales person at Bank of America for a First Data merchant credit card machine and now I see that these payments are reported on my credit report. My score is probably around 720 and I have never been late on any payments, no collections, all is is clean. I have a mix of loans, revolvers, etc. I really don't want keep paying this company $29 per month for the next 4 years or buyback my lease for over $1000. When I signed up with Bank of America Merchant Services they told me that as soon as I let them know that I want to close my merchant account they will buy back the lease from First Data. That turned up to be a big lie. So now I’m on the hook. How bad will my credit suffer if I just stop paying this bill? Thanks
Honestly if you get a collection with a 720 i would think between 60-80 points. before i blew them off. i would try and close and negoiate payment. rather than get a collection. most of us have been there done that. i had the same thing happen 5 years ago. wachovia. told me small merchant fee. i paid 53 for machine. 50 for account and transaction fee.
i said screw it like you are thinking and my score. nose dived. to 500's . only 2 years ago did i start to fix things. i got lucky and the collection dropped after i disputed. as Wachovia became wells fargo and they did not contest my dispute. but i don't see Boa going anywhere. and they will ruin your credit. so pay it and if you can the 1000 bucks.its worth saving your credit in the long run.
I really don't want keep paying this company $29 per month for the next 4 years or buyback my lease for over $1000.
So what's most important to you? Saving $1,392 by not paying out the remainder of the lease/saving $1,000 by not doing the buyback on the lease? Or not impacting your credit for years to come?
The issue isn't just the impact to scores. Creditors -- especially conservative ones -- will see the derog as a serious negative.
My wife went through the same sort of ordeal with Pushpin/Lease Finance Group and ended up negotiating a payoff via a BBB complaint. It's a terrible situation to be in but just emphasizes how important it is to read and understand the entire agreement versus relying on what anyone says. If you're going to rely on the latter then make sure you have a recording that can be used as evidence.
I'd suggest doing some research to see how others have dealt with First Data to see what has worked for others. It took a lot of digging for us with the Pushpin ordeal.
I would pay $1000 right now to get my credit to where yours is now. Don't stop paying it.
Definitely worth it to keep paying. don't screw your credit up for $1,000.