Help Needed-Collections Not on Credit Report--PAYPAL CREDIT

[Anonymous]

Hi Guys...need some help.  I am closing on my new home next month, and recently received a letter from ARS (collections agency) telling me I have a charged off Paypal credit account from 2017.

This account is NOT on my credit report currently.  ARS sent me original debt information, and told me Synchrony Bank is the current creditor, original creditor is Comenity.  ARS is telling me that they are Synchrony Bank's client, and they do not own the debt.

I have called Synchrony, Comenity, and PayPal Credit, and no one has any record of this debt.  I beleive the debt is legitimate.

MY CONCERN is due to my upcoming home purchase, if I settle or Pay this now, will it somehow appear on my Credit Report after all this time as a negative account?  Do I do nothing, since the original and current creditor have no record?  ARS is telling me the do not report to the credit bureau's they only report back to Synchonry.  PLEASE Advise!

[gdale6]

I would settle it before your mortgage processor finds out about it.

[Anonymous]

I agree with @gdale6 , same thing sort of happened with me.  I recieved a letter from CA, but they had not reported to the CB's yet.  We agreed that I would PIF and they would not report.  They said if I settled for less than owed, then they would have to report to the CB as settled.  I am currently paying them now, and they have not placed the account on my reports so far.  Next month will be my last payment with them.

[Anonymous]

Yes that makes sense, and my inclination is to Pay, however, the Original Creditor and Current Creditor have no record of this debt....by paying this, will it resurface and get added?

Collections company says they don't own debt, that Synchrony does....Synchrony has no record?

[gdale6]

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@Anonymous wrote:

Yes that makes sense, and my inclination is to Pay, however, the Original Creditor and Current Creditor have no record of this debt....by paying this, will it resurface and get added?

Collections company says they don't own debt, that Synchrony does....Synchrony has no record?

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Always a possibility if it still is within the 7.5 yr period from the DoFD. One thing I just thought of this could be ID Theft or a scam you might want to check into it further. Legitimate collectors dont want to stop your home purchase they just want to be paid. I would contact the office of the Synch CEO and have them look into it, its possible the frontline CSRs dont have access to info on it anymore but the backroom does.

[800goal800]

Similar situation.   My wife received a letter from ARS for a synchrony / paypal account this week. I believe this goes back years to a Bill Me Later account but it has never reported.  I'm not able to login to the account but I believe the last time we paid was 5 years ago.  

What is the best approach to find out DoFD ?  I don't necessarily want to call Synchrony / Paypal ?

If I paid the CA to not report, that wouldn't prevent Synchrony reporting though ?

Thoughts ?