Collection Question

[gjmmgmnt]

My question is that I have an account that is in collections and the 7 year statute is dawning upon me. I arranged a payment plan and a few payments away from paying it off. I have experienced paying off an account once before and it plummeted more score. Should I continue with paying the last few payments? will it drop my score again when paid off? Should I speak with colection agency in regards to a pay for delete or is it too late? Not sure whats the best course of measure now that I'm so close in paying it off but also realizing this will be dropping off shortly and not wanting to ding my score anyfurther. Thank you.

[DaBears]

Hi gjmmgmnt and welcome to the forums!!! You can offer a PFD at anytime. Paying off a collection should not lower your score. Altho I have seen it done before. Just because it is coming up to the 7 yr mark to fall off, the unpaid debt will be out there forever and they can continue to try and collect on it. Me personally I love having a clean credit report. I have left a chapter 7 which will fall off in March of 14'  Everytime I paid off a collection and keeping my current credit cards at a low UTIL and making on time payments my score have risen. 

DaBears!

[FICO_addiction]

let it drop off and tell them that the number they are calling is a cell phone and to take it off their collection list....if it truly has been close to seven years and you have no judgement of suit filed against you.... then the statute of limitations is long past(ie...nothin thay can do but beg you to pay)hope that helps. but yes your score will most likely drop slightly(like 4-7 point if you pay it off...usually).

[guiness56]

Unpaid debt follows you forever.  If you ever want a mortgage will have to disclose unpaid debt and they may make you pay it.

Paying off a collections normally has no impact, either up or down, on your score.

[FICO_addiction]

oh and most companies will tell you it is against policy to delete it if it is a valid debt...best way to get it off sooner is ask for validation of debt(by certified mail...address of collecter should be on trans or equifax) if they cant show you your signature on paper for valid days of the debt or dont respond within 30 days in writting the by law(google it) the have to remove the claim from your file.

[guiness56]

A CA doesn't have any amount of time to respond to a DV.  They just cannot continue collection activity until they do.  FDCPA 809 (b).

[DaBears]

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@FICO_addiction wrote:

let it drop off and tell them that the number they are calling is a cell phone and to take it off their collection list....if it truly has been close to seven years and you have no judgement of suit filed against you.... then the statute of limitations is long past(ie...nothin thay can do but beg you to pay)hope that helps. but yes your score will most likely drop slightly(like 4-7 point if you pay it off...usually).

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@I disagree, that is not good adivse we give here on myFICO!!!!! +1 @ guiness. As guiness stated unpaid debt does not go away. If you app for a mortgage or life insurance of $150K or more they will see the unpaid debt. If you get a job that pay $75K or more they will see it. FICO_addiction please read the blue stickies under my posts. 

[FICO_addiction]

This is all state based. You may want to check your state laws first....Alabama for one, has statute of limitations for debt collection and credit reporting. alabama law(Section 6-2-33 and 6-2-34), and depending, again, on your  local laws, unpaid can and probably will "go away." May not be the best thing to do but he's this close to it falling off...it will not "FOLLOW" him anywhere...except right off the end of his credit report

[FICO_addiction]

this is so untrue! unpaid debt will not follow you foreve.r i ruined my credit when i was young(18) took seven years but guess what no trace of it in sight. This may be due to local laws, but i have a mortgage now and plenty of credit accounts and cards(which are all below 20% util). 

[gjmmgmnt]

Thank you all for your responses. This helped out a lot!