Convergent Outsourcing PayPal Credit

[Anonymous]

Hi All,

Here is a quick background of the current situation: It's been over a year since I paid off my last collection account to Midland Funding (Evil People), and they are currently the only closed collection showing on all 3 of my CR's. Since then I have re-built my scores to the high 600's and use a credit card for everyday expenses and PIF at the end of the month. Out of the blue this past Friday, August 19th, I received a collection letter from a company called Convergent Outsourcing. They are stating I owe $4xx.xx for a Paypal Credit Account through Comenity Capital Bank. After doing some research, a lot of consumers have said that this company is a scam. I do remember using Paypal credit many many years ago, but haven't used Paypal in over 4 years. 

I called the Paypal Credit department this morning and gave them the Paypal Credit account number listed on the Convergent collection letter, and Paypal confirmed it was legit and sold off back in 2012! This debt must have slipped under the rug during my college days from living in 4 or 5 different locations during my 4 years of college. I told Paypal that I was willing to pay them anything I owe, but they stated I must pay Convergent Outsourcing as Paypal does own the debt anymore.

I have not contacted Convergent in anyway thus far. I just pulled all three of my CR's and no collections have been listed, nor has there been any soft/hard inquiries from any company listed under their name or known associated names. The last thing I want to do is spark any activity if I send a DV or give them a phone call. I am really leaning towards just cutting them a cashiers check for the full balance amount and getting on with my life. If they haven't listed a collection yet, then I doubt any sort of PFD scenario would work. 

Does anyone else think this would be a good idea? It's only a few hundred dollars, which is not a problem for me. I just want to be completely worry free. Thank you for any input!

[redbeard]

Interesting scenerio.

In most states, the debt is old enough (over 4 years?) that is is likely uncollectable in the sense that they can't sue you for it.  You would have to check your state laws about this.  But, they can put a collection on the credit report.

Odds are, if you pay it, then it just goes away, no big deal, no credit report filing, nothing.  Its not a tremendous amount of money, so this isn't a bad option.

If you don't pay it, it might just go away (likely) or they could put it on your reports and then give you trouble getting it off.  It would only be on there for 3 years or so, basically 7 years from the first delinquency, but, why risk 3 years of somewhat lower scores for a few hundred dollars?

If it was me and I could pay it without taking food off my table and I felt I did owe it, I would just pay it and be done with it.  

Dan

[RobertEG]

If you wish to pay with assurance that it will not be reported, you can make a pay for not reporting offer.

[Anonymous]

UPDATE:

After thouroughly checking my Experian CR again, I do see that Convergent Outsourcing did a soft inquiry approximately 2 weeks ago (Only listed on my Experian report, not the other 2). But again, no collection account has been listed on any of the 3 CR's. Given that the letter sent stated to call their offices within 45 days of receiving, to work out a "settlement offer", I believe they would then list a collection on my report after that time. I may just quietly send them a check and move on. I highly doubt any CA that receives full balance payment within a week of sending out their initial contact letter will want to cause anymore troubles.

Thanks for any and all input on this

Fingers Crossed.....