I have a settlement offer for an old T-mobile account. The T-mobile account is not listed on my credit report and the collection agent has not reported anything yet either. The account was closed in 2003/2004 so I believe the SOL has run.
I am curious how best to proceed. If I pay the settlement amount could the CA then report it to one of the credit reporting agencies as a settled collection account. Their settlement letter says that once the settlement is paid their records will reflect the status of the account as settled in full.
Can I use a PFD letter but style it as a a pay for never reporting letter? Since they haven't reported yet, PFD doesn't seem to make sense to me. But I don't want to resolve this and then have it show up as a settled collection account on my report.
Finally, how does it affect things that the SOL has passed? I understand that means they can't sue to collect (or that I have a defense to any suit) but can they still report the account if they so choose?
Should I start with a DV letter?
Any help is appreciated. Thanks.
Starting Score: ~500 (12/01/2008)
I experienced a similar situation to this, but it was with a secondary collection agency, as the first was unable to collect from me (I was disputing the fact that it even ended up with collections).
The first agency sent the account back to OC, and then to the new CA. I was contacted by them, and told them I was disputing right away. They said they had not reported anything yet, and I asked if I settled with them if they would not report at all, they agreed (get something in writing - I didn't). And they kept their word.
Made my payment, checked my credit report numerous times and they never reported. So it doesn't hurt to try. Now I just have to get that first agency to stop reporting 
In followup, for anyone interested, right after I posted this, the CA (AFNI) reported the account. I sent the DV letter and got a response. After I got the response, I sent a PFD offering only 10% of the total they were claiming due. The account was outside the SOL and was due to fall off my report in about 6 months. I was surprised when two weeks later they responded saying that they were deleting the account from my reports and closing the file and they didn't ask for the money I offered. The collection came off my report just last week.
Strange turn of events, but I'll take it.
