@newscore89 wrote:9/26/2022
Hello Forum Members
Has anyone ever dealt with a collection company called Payliance? If not does anyone have any insight on how to deal/address these guys?
I have a $20.00 returned check that was placed for collection on "2" of my credit reports back in 2017. They (Payliance) added an additional $30.00 fee to the check, so the amount is listed as $50.00 on the two credit reports.
With the exception of that 1 item listed on "2" of my credit reports......my credit reports would be flawless, my credit scores with the 3 bureaus are as follows:
Experian 765
Equifax 729
TransUnion 761
I was going to just wait out the additional 2 years( on schedule to be deleted in 2024) and allow these 2 negative entries to self-delete, because I don't want to do something stupid like contact Payliance & accidentally "re-age" these collections accounts, however, I recently applied for an additional Discover card account and was actually turned down because of this $50.00 collection on my credit report!
Fast forward 3 years later to 2022, I recently applied for a Discover "Travel Rewards" credit card as an additional card to have...and to my shock, I was actually DENIED! The reason is, the $50.00 collection from Payliance! Now mind you, this account has been on my 2 reports for 5 years(2017), it no longer has a significant impact to my credit scores, and when I applied for my 1st Discover card account back in 2019, this collection it was not a factor and Discover approved me , but now 3 years later it's keeping me from obtaining an additional card from them. WTH??
Guys how can I put this mildly.......I am PISSED, that I was turned down for an additional credit card by my current credit card company that I am in excellent standing with ($15,000 credit card limit) always pay on time, NEVER late....and my overall revolving credit card utilization is only 15%
Any insight on how I should proceed? Do I contact Payliance and either debt validation with them, (I'm sure they will have a copy of the check) if I were to contact them and try to do a Pay For Delete, do they even accept those, or would that automatically re-age the debt and then I'm screwed for another 7 years?
At this point guys, I haven't done anything yet...but I'm hesitant to apply for another credit card elsewhere....I cant believe Discover turned me down this time, when 3 years ago, they approved me for my 1st card!
Any insight would be helpful
Thanks/ NewScore89
Is it worth $50 to get a Disco card? Pay it. Never heard of them but paid is better than owed on your file. Times are different now with credit card debt on the rise. To them you had a while to pay only $50 but it wasnt done. Get it in the past is the best advise. Appears they deal with unpaid NSF fees.
You can leave it alone. And it may hamper others apps. Or call the OC/Bank and see if they will recall the debt if you pay them. Plus its also listed on ChexSystems probably. So it isnt just the CRA's its on. If paid yes it will show as updated. Re-aging is illegal, as creditors must report accurate information to the credit bureaus. You may read or hear about re-aging in reference to a creditor or collection agency "re-aging your account" so it stays on your credit report longer, but that should never happen.
https://www.experian.com/blogs/ask-experian/what-is-account-re-aging/
Paying them/contacting them about it won't re-age it. If it does, it's illegal and they would need to fix that or delete it. So no worries there.
As far as tanking your score, actually collections affect you all 7 years believe it or not. The reason this one may not be tanking your scores at the moment is cause it's under $100 and I believe the FICO algorithm ignores "nuisance" collections under $100. Is it updating monthly? If it is, then paying it would actually help you so it'll at least show as paid. If not, then yes, there may be a score hit due to the update when it reflects paid status. If that's the case, then I'd leave it alone and just wait it out until it falls off. You can ask for early exclusion up to 6 months early with TU, 3 months early with EX, and 1 month early with EQ.
@rebuildingmama wrote:I'm in the same situation but with two $40 Payliance collections and unsure what to do. The returned checks were paid when the re-deposited the checks but the $40 fees are what's reporting. I still have about 3 1/2 years before mine will fall off and I hate seeing them on my reports (especially with such low amounts, I could easily pay them off) but I'm unsure what to do. I want so badly to get out of subprime cards but I don't think I ever will with two collections reporting.
What did you end up doing and what was the outcome?
Welcome @rebuildingmama
Can you go by the bank and explain whats happening? If it was paid. maybe they can recall it.
@rebuildingmama wrote:The bank has been paid the value of the check when it was deposited the second time, the (2) $40 I owe is their returned check fee. I'm thinking about stopping by the grocery store where the checks were written and seeing if I can just pay them there and hopefully, they'll report to Payliance that it's been paid. Will still show a collections account on my CR but at least it will be a zero balance I guess.
The bank charges the NSF fees. Not the store. Go to the bank and work it out.