Question on Collection

[Anonymous]

I have one collection on my credit reports (across all three) that is through Midland Funding LLC and has been sent to a lawyer.  Midland refuses, stating that it isn't up them but up to the agencies if a collection stays on a report if paid in full.  I've argued this up and down with them.  

So I guess my question is, becuase I have been served with legal papers and have to do something at this point, does it matter if paid in full or settled in regards to credit and/or future loans (such as auto)?  

[RobertEG]

If they report settled for less,, that informs others that you have a prior history of not paying the full debt that you oblgated, and thus the creditor took a loss.

That is always an unfavorble comment in any manual review.

The extent to which it effects your future pursuit of credit is entirely at the discretion of the prospective creditor, and their perception as to whether you are likely to repeat that pattern.

[CH-7-Mission-Accomplished]

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@Anonymous wrote:

I have one collection on my credit reports (across all three) that is through Midland Funding LLC and has been sent to a lawyer.  Midland refuses, stating that it isn't up them but up to the agencies if a collection stays on a report if paid in full.  I've argued this up and down with them.  

So I guess my question is, becuase I have been served with legal papers and have to do something at this point, does it matter if paid in full or settled in regards to credit and/or future loans (such as auto)?  

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I would just try to settle it for the lowest amount possible.  The collection itself reporting is 95% of the damage.  Settled for less than full is pretty meaningless.  At least you settled it.  Two years after filing a BK I have 100K plus in credit and excellent scores -- and I burned 100K in debts that are not getting paid back.  Settling is always in your best interests for the lowest sum possible.

[Anonymous]

Settlling is not an option after you have been served, and they won a default judgement.  After that, if you don't pay them,  they will most likely garnish ar attach to your bank account.  I would just pay in full and have it over with, if possible.

[CH-7-Mission-Accomplished]

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@Anonymous wrote:

Settlling is not an option after you have been served, and they won a default judgement.  After that, if you don't pay them,  they will most likely garnish ar attach to your bank account.  I would just pay in full and have it over with, if possible.

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They don't have a judgment yet.  Being served means you are set for a court hearing.  This is the most common stage where all monetary lawsuits are settled, not just collections.

I don't know how much $$$ we are talking about, but can you offer them 20%, let them come back at 50%, and try to settle for 33%?  That would be probably doable.  They don't want to pay their lawyer $300/hour for court.

[Anonymous]

The debt isn't terribly large.  $1010 and some change.  I just wasn't sure if it was better to have it say paid in full or settled for a lesser amount.

[CH-7-Mission-Accomplished]

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@Anonymous wrote:

The debt isn't terribly large.  $1010 and some change.  I just wasn't sure if it was better to have it say paid in full or settled for a lesser amount.

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If it's a collection company just settle it for the least you can.  $200 or $300.

If it was a chargeoff from Citibank or Chase, I might think twice and consider paying them off in order to get back in with them, but once they have sold the debt to a collection agency, they got paid all they are going to see and they could care less what the collection company gets from you.

[Anonymous]

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@CH-7-Mission-Accomplished wrote:

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@Anonymous wrote:

The debt isn't terribly large.  $1010 and some change.  I just wasn't sure if it was better to have it say paid in full or settled for a lesser amount.

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If it's a collection company just settle it for the least you can.  $200 or $300.

If it was a chargeoff from Citibank or Chase, I might think twice and consider paying them off in order to get back in with them, but once they have sold the debt to a collection agency, they got paid all they are going to see and they could care less what the collection company gets from you.

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It is a collection company.  Actually it's being handled by a laywer for the collection company.  Original debt was to CreditOne, defaulted and bought by Midland Funding, LLC, who sent it to a lawyer who has served me with papers to which I have to respond.  

[Bankrupt2019]

Its all preference. I've gone to court and fought a couple of collection companies attorneys and they've lost because they cant prove that they even have a legal right to collect the debt. If you're sure that they can back up their claim i would settle the matter out of court. Either by settling the debt for less or paying in full. These attorneys don't want to go to court, they want you to settle.