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What to do

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beanie7132
Frequent Contributor

Re: What to do

I cant answer that ;( Thats a decision you need to make based on what you want the end result to be. 

 

Personally, I did not pay them. But thats just me. I refused to pay them 1200.00 on an original balance of 545.00. Had my BBB complaint not worked, I am sure I would have tried to settle with them as we are preparing for a mortgage. No collection is better than any collection. But to an underwriter a Paid collection it better than an unpaid one. 

 

Just remember that if you pay them without an agreement for PFD, the collection remains and the effects on your FICO score will not change whether its paid or unpaid. 

Message 11 of 13
RobertEG
Legendary Contributor

Re: What to do

For several reasons, sending a DV is not, in my opinion, always an automatic first step.

 

First, if timely, a DV imposes an automatic cease collection bar on the debt collector.

That precludes any negotiations on terms of satisfaction other than a simple pay in full.  You thus place any negotiations into a self-imposed state of limbo until they decide to provide verification.  They may view the DV as continued intent not to pay, and thus they can verify and immediately take their own action.

If the legitimacy of the debt is not really contested, you can presume they have the ability to verify, and thus they decide when they will take the next step.

 

Second, noting that the collection is a few years old, any DV would most likely be untimely, as I presume they sent prior dunning notice.

Thus, you have no cease collection bar, and they are free to ignore it, and go on about their business, while you wait for response.

 

If planning to buy a home, neither expiration of SOL nor credit report exclusion will remove the fact of unpaid, delinquent debt, which you willl most likely be asked to disclose in any mortgage app.  CR fall off only removes the easy ability to become aware of unpaid debt via a simple pull of your CR, and seeing an unpaid collection.

 

I would attempt a PFD to both get the debt satisfied, and get earlier CR exclusion.

If they wont delete, then an offer of settlement for less with the stipulation that they wont report paid for less, which carries its own negative connotation that you dont pay your entire obligated debt, and thus are an additional risk.

Last resort, pay in full to get the debt satisfied.

 

Risk of legal action is not huge if you can pay prior to trial, and thus avoid a judgment.

 

 

 

 

 

Message 12 of 13
stucktruck204
Established Member

Re: What to do

Here are 2 accounts that i know i need to pay.  Should i just call and pay them.  Will they be removed from my report in turn helping me get my score back up?

 

Remarks: >P LA C ED FO R C O LLEC T IO N<

Estimated month and year that this item will be removed: 11/2019

CONVERGENT OUTSOURCING #7266****

P O BO X 9004

RENT O N, WA 98057

(800) 444-8485

Placed for collection: 11/11/2010

Responsibility: Individual A ccount

Account Type: O pen A ccount

Loan Type: C O LLEC T IO N

Remarks: >P LA C ED FO R C O LLEC T IO N<

Estimated month and year that this item will be removed: 07/2015

CREDIT COLLECTION SERVIC #3858****

P O BO X 9134

NEEDHA M , M A 02494-9134

(603) 570-4784

Placed for collection: 08/02/2010

Responsibility: Individual A ccount

Account Type: O pen A ccount

Loan Type: C O LLEC T IO N

A GENC Y /A T T O RNEY

Balance: $203

Date Updated: 07/04/2013

Original Amount: $203

Original Creditor: SP RINT

Past Due: >$203<

Pay Status: >In C ollection<

A GENC Y /A T T O RNEY

Balance: $197

Date Updated: 10/12/2012

Original Amount: $197

Original Creditor: P RO GRESSIV E

Past Due: >$197<

Pay Status: >In C ollection<

INSU RA NC E C O M P A NY

(Insurance)

Message 13 of 13
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