CA not reporting and want to settle?

[lmfields84]

there's a collector that my husband is paying as part of a debt consolidation program. They are not appearing on any of his credit reports and we've been paying them for some time. The account is for sprint and weve paid about $600 of the $1100 balance. I really want to be done with them since it will take another year or so to pay them on this program, plus the account is so old it will be past 7 years at that point. I want to settle for $100 more ($700 total paid) but I'm afraid if I do that, they will report it. Is there any way to do this? Thoughts, suggestions?

[SunriseEarth]

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@lmfields84 wrote:
there's a collector that my husband is paying as part of a debt consolidation program. They are not appearing on any of his credit reports and we've been paying them for some time. The account is for sprint and weve paid about $600 of the $1100 balance. I really want to be done with them since it will take another year or so to pay them on this program, plus the account is so old it will be past 7 years at that point. I want to settle for $100 more ($700 total paid) but I'm afraid if I do that, they will report it. Is there any way to do this? Thoughts, suggestions?

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What was your DOFD?

[RobertEG]

Did your payment plan agreement with them include any stipulation that they would not report provided the payments were timely made?

If so, you have a contractural agreement against reporting, and would be covered.

If they do report, they must provide the DOFD on the OC account to the CRA within 90 days after their reporting.

The CRA must then exclude their collection from your CR no later than 7 years plus 180 days after the reported DOFD.  Period.

If you do not plan to need your score for any purpose, such as application for new credit,  until after the exclusion period for any reported collection has expired, then their reporting would kinda be academic.

If you make a settlement offer, you can include as a condition in that offer that they agree not to report their collection to any CRA.

[lmfields84]

Thanks for the replies! They have the DoFD as May 2008. I decided to (gasp!) Call them and offer $100 more to settle in full and they declined. They want $200 which means I would have paid $700 toward a $1100 debt that is 6 years old. I told them nevermind, we will continue making small payments until we can come to an agreement. It will age off before we go looking for a mortgage anyway.

[RobertEG]

If your current budget can afford it, personally, I would take their offer, particularly if it includes agreement not to report a collection.

Overall, it will result in a net $ saving.

It will also instantly remove the delinquent debt.

If the debt remains unpaid at the time you seek a mortgage, regardless of whether they have reported their collection or whether, if they report, it becomes excluded, you will still most likely be faced with disclosure of fhe unpaid delinquent debt in the mortgage app process.

 Credit report exclusion could be as late as 11/2015.