Sent to collections

Noctilum · ‎08-30-2017

I co-signed so my brother and his girlfriend could rent a house. Hosue got tore up pretty bad by their dogs. Repair bill was sent to us, but it was sent to the address of the house they were renting and no longer occupying so it went to collections. The CA called me and was eager to get me to settle and make a deal. I don't want this hitting my credit report, so do I try and settle for pennies on the dollar, or do I pay in full? When I say pay in full, my brother and his girlfriend will be doing that, not me, but if it can be settled for much cheaper and not affect my credit then I am okay with that. The CSR had no idea if it would if I settled. Also, at this point should I try and contact the property manager and pay them directly or go through the CA?

Thanks for your advice!

RobertEG · ‎08-31-2017

If you contact the debt collector and obtain their agreement not to report if you pay the debt by a certain time, then that becomes a contract provision that is legally enforceable.

As for how much to offer, the higher the offer, paying in full is usually more of an incentive to accept a pay for not reporting stipulation.

I would not low-ball a settlement offer if your primary goal is to prevent credit reporting.

Anonymous · ‎08-31-2017

If it has already been sent to collections, generally the property management hands are tied. There is nothing they can do. I have been a property manager for 10 years and that is always the case.

Anonymous · ‎09-01-2017

@Anonymous wrote:
If it has already been sent to collections, generally the property management hands are tied. There is nothing they can do. I have been a property manager for 10 years and that is always the case.

Did your company sell the CA the debt? Or do they collect on behalf of your company and get a cut? If the CA is working for your company and does not own the debt, your company can direct and tell the CA whatever they want and the CA will do as its told.