Accounts in Collection

Anonymous · ‎07-17-2010

I have 3 accounts in collection that according to myfico credit reports were assigned by the OC. All 3 CA have reported recently on my credit report as of within the last month. All of these accounts are still within SOL I believe (live in california). The collection amounts are relatively low, $384, 355 and $1071 and i do own these debts. While im not looking to be making any huge purchases any time in the near future such as a house or car; what is the best way with dealing with these accounts? Will paying off these accounts and having a settled in full status help my credit score in the long run? What are the chances of getting a PFD if the debt is fairly recent (3 years old)? I really want to get this over with ASAP and begin my road to credit recovery but having sent out DV letters and its been 2 weeks without a response. Also since these accounts were assigned by OC's, will it look good to them that I settled with these CA's that they assigned my account to? Will the CA's report to the OC that the accout has been settled? The CA's im dealing with are Asset Acceptance, Pinnacle Credit Services ad Recovery Portfolio Associates. How should i move forward with these CA's? Send in PFD letters and wait for responses? This forum has been a great help in my effort to rebuilding my credit history and any advice would be great, thanks!

Anonymous · ‎07-18-2010

It sounds like the OC still owns these accounts. Call them and ask if you PIF if they will recall them from the CA.

Just paying a collection will not help your score. They are scored the same by FICO.

Same goes with a settlement. It will not help and actually looks worse.

Before doing anything with the CAs, talk to the OCs first.

Anonymous · ‎07-19-2010

Thank you for the reply message, I did give each of the OC's a call to see if they were willing to settle in full but they all mentioned that account was no longer with them as they were sold/purchased by another lender (assuming the CA's now own the account). Since you mentioned that settling with CA's will do my score no good and may even hurt it, what should my next plan of action be? It seems like it would be useless to pay off a CA if it's not going to help my score

Anonymous · ‎07-19-2010

If you can afford to PIF, ask the CAs for a PFD. You pay them and they delete. Get it in writing on their letterhead. Do not send them money if they don't agree.