Need advice on paying OLD debt.

[Sam1]

Looks like you've already done the homework, I completely forgot about pfd's.

[knewcomb]

Well, at this point, I dont really have much of an option. If it is going to re-age the account   then there is no way I am going to go through with it. Only real option it seems is the PFD. Surely they would agree to it with it being such a trivial amount because that $204 could cost me tens of thousands of dollars in interest down the road. No thanks. 

[Good_Steward]

Invest in an Equifax membership. $16 a month to be able to keep a good eye on your credit and prevent any crap.

 

As far as the membership, if you pay up and resolve (pays as  agreed), deletion or not, your credit score will go up. 

[knewcomb]

Invest in an Equifax membership. $16 a month to be able to keep a good eye on your credit and prevent any crap.

 

As far as the membership, if you pay up and resolve (pays as  agreed), deletion or not, your credit score will go up. 

 

The account is almost 6 years old. By paying up, the account would become current, would this not drop the score again?  And keep it on there for another 7 years? What is really odd about this is I have been checking my credit score via CreditKarma for the past 2 years and it was never on there. It wasnt until I went to the bank and they got my Fico score that it actually started showing up. 

Edited August 6, 2013 by knewcomb

[Sam1]

Invest in an Equifax membership. $16 a month to be able to keep a good eye on your credit and prevent any crap.

 

As far as the membership, if you pay up and resolve (pays as  agreed), deletion or not, your credit score will go up. 

 

Use creditkarma.com, it's 100% free and does the same plus some.

[Good_Steward]

Use creditkarma.com, it's 100% free and does the same plus some.

 

OP stated he is using credit karma, I never thought I had a problem due to my credit score being in the mid-700's previously, but joined equifax, found some small items that were paid off, and now score in the 790's to low 800's, with Equifax being the lowest and Transunion being the highest. 

 

The Op has one still showing after 6 years. Better to show currently settled than still old and outstanding. I promise you, this thing is brought back to life every so often by the debt collection company to make sure it doesn't go away.

 

Just my $.02

[Guest copperhead_1911]

You can always dispute it. I know people who have and have gotten both mistakes and legitimate debts ( I am not saying its right, but people did it) removed. 

 

I dont think you will take a hit by paying it. Many mortgage companies will require this as I used to do mortgages and the main thing that was looked at was the score and that things were satisfied. Many times we paid the debts with cash out proceeds. 

 

Hope that helps

[Guest Keal G Seo]

Yeah that is just a letter saying they will report "Paid in Full" status and yes this resets the time on it and brings it to active. You surely want a pay for deletion.

As for CreditKarma, that is one resource and their info only comes from one credit reporting agency, Transunion. As for signing up for any service, it is a waste unless you think you are at high risk of identity theft. You can get each of your reports once a year. The way I do it is spreading them out every 4 months. In January I order my Equifax report, May my Transunion and finally in September I get my Experian. This way, anything large will show up on all three and I can have 4 months to handle any little stuff that I have pop up.

[knewcomb]

Well I got some great news today, I rep from the collection agency gave me a call today to notify me that they had agreed to my pay for deletion contract. Upon receipt of payment, the collection would be removed from my report. Cheers!

[vontar]

Well I got some great news today, I rep from the collection agency gave me a call today to notify me that they had agreed to my pay for deletion contract. Upon receipt of payment, the collection would be removed from my report. Cheers!

 

It all comes down to they want money and were probably glad you contacted them as I bet they had long since quit sending you bills even though it was still on their books.

[knewcomb]

It all comes down to they want money and were probably glad you contacted them as I bet they had long since quit sending you bills even though it was still on their books.

I actually  never received any bills. The contact info they had for me was for my dorm phone and mailbox at college. Might be why I never heard from them haha. 

[hipower]

I know I'm gonna sound like Dave Ramsey here, but keep copies of all your dealings with the collectors. Ask for and keep a statement of your terms and agreement with them BEFORE you pay it. And get names of all parties involved in this arrangement...with signed and dated copies from these people.

 

And keep it forever! This just might pop up to haunt you again.

[knewcomb]

I know I'm gonna sound like Dave Ramsey here, but keep copies of all your dealings with the collectors. Ask for and keep a statement of your terms and agreement with them BEFORE you pay it. And get names of all parties involved in this arrangement...with signed and dated copies from these people.

And keep it forever! This just might pop up to haunt you again.

That is a given. This whole situation could have been avoided had I had it in writing 5 years ago. Never again. Everything is photocopied and stored including envelopes.

[knewcomb]

I was contacted yesterday and by the lady I have been speaking with alo along and was told they wouldnt be able to send the agreement but they would be able to send it by email and/or fax. I was waiting on this to happen. After some research on the and their business practices, my stomach is in knots. Edited August 23, 2013 by knewcomb

[Guest Keal G Seo]

I was contacted yesterday and by the lady I have been speaking with alo along and was told they wouldnt be able to send the agreement but they would be able to send it by email and/or fax. I was waiting on this to happen. After some research on the and their business practices, my stomach is in knots.

Yeah that wont hold up. It has to be an original copy on their company letterhead.

[knewcomb]

A faxed letterhead wouldnt work?

[tnguy]

I'd tell them that for the price of a stamp and a piece of paper, they can get their $200 or they can sell it on to the next collection agency for pennies.

 

Then again, I'm not looking to get a mortgage.

[Guest Keal G Seo]

It's a touchy subject. If you only have a copy (a fax) then they could theoretically say you just made it yourself. To have their actual company letterhead on their own stock is a bit harder to fake. I'm with tnguy on this one. Explain that they front the cost of a stamp and piece of paper or just hold off on paying it. It is old debt and will be gone soon enough. If you pay it without a PFD agreement it will be there another 7 years albeit with a paid as agreed assignment. The only reason they would not be wanting to send to it is because they don't want to be held to doing their part.

[knewcomb]

Cant they sue me if I tell them im not paying without that agreement mailed and signed?

[tnguy]

That would cost them money. They probably paid $3 for your debt so if they can get you to pay it easily, that's a win for them.

[vontar]

That would cost them money. They probably paid $3 for your debt so if they can get you to pay it easily, that's a win for them.

 

I think his debt is still with the original place and hasn't been sold off. 

However you are right that would cost them money and on the low amount probably not, but then again they always could.  Even if small claims maybe.

[knewcomb]

I think his debt is still with the original place and hasn't been sold off. 

However you are right that would cost them money and on the low amount probably not, but then again they always could.  Even if small claims maybe.

 

Yes it is. Its actually a very weird situation. The original creditor and the collection agency are one in the same. National Fitness is does billing for a large number of gyms. Of course, this makes it easy for them to put things into collections. Just transfer it over to the next department!

[Guest Keal G Seo]

Cant they sue me if I tell them im not paying without that agreement mailed and signed?

Well yes, you can sue for anything whether you say it or not. Never actually say that you wont pay, just tell them you will exercise every right you have under the "Fair Debt Collection Practices Act"...this will cost them more than one stamp. First step being a certified letter requesting "Debt Validation" and a no contact request if they refuse, they will be able to call you one more time but any further contact must be through mail. There, you already ate that 42 cents up when they have to send that. If they don't send that you can send a copy of your letter and a copy of the mailing certification to the debt reporting agencies to have it removed. If they do send it, your next move is a certified letter with an settlement offer. This can include your stipulation for a "Pay for Deletion". If they fail to respond again you can contact debt reporting agencies for dispute/removal. You just ate up another 42 cents if they want to keep it on the record at the reporting agency.
Anyway, on the note of being sued for a small amount: That is very unlikely. While they could sue and even get judgement for attorney fees, they would never recover enough for all the effort put into it.
Bottom line, if they wont do a PFD then just let it fall off. Use the extra time to get small loan, say a thousand or two to repay over the next year or so while you wait. This will add to your credit rating as an account in good standing. With it you could get you a toy of some type. :)

[knewcomb]

Well yes, you can sue for anything whether you say it or not. Never actually say that you wont pay, just tell them you will exercise every right you have under the "Fair Debt Collection Practices Act"...this will cost them more than one stamp. First step being a certified letter requesting "Debt Validation" and a no contact request if they refuse, they will be able to call you one more time but any further contact must be through mail. There, you already ate that 42 cents up when they have to send that. If they don't send that you can send a copy of your letter and a copy of the mailing certification to the debt reporting agencies to have it removed. If they do send it, your next move is a certified letter with an settlement offer. This can include your stipulation for a "Pay for Deletion". If they fail to respond again you can contact debt reporting agencies for dispute/removal. You just ate up another 42 cents if they want to keep it on the record at the reporting agency.
Anyway, on the note of being sued for a small amount: That is very unlikely. While they could sue and even get judgement for attorney fees, they would never recover enough for all the effort put into it.
Bottom line, if they wont do a PFD then just let it fall off. Use the extra time to get small loan, say a thousand or two to repay over the next year or so while you wait. This will add to your credit rating as an account in good standing. With it you could get you a toy of some type. :)

 

Ive already taken all the steps through the pay for deletion letter. A rep contacted me and said that they had agreed to the request and would be sending a signed letter as I had requested. A few days later she called again and said that they would not be able to send the letter through the mail, only through fax or email. Regarding a small loan, the bank told me I could not take out any kind of loan with an open collection(Region).

[Guest Keal G Seo]

Ive already taken all the steps through the pay for deletion letter. A rep contacted me and said that they had agreed to the request and would be sending a signed letter as I had requested. A few days later she called again and said that they would not be able to send the letter through the mail, only through fax or email. Regarding a small loan, the bank told me I could not take out any kind of loan with an open collection(Region).

Wow, I would try a smaller bank then. I use a credit union. Have been working on my credit for about 7-8 years now. When I was just getting started, opening credit cards and getting loans etc, I had several leftovers from dumb kid stuff, typical BMG music service, book clubs and the like. None of that ever prevented me from getting a loan. It did keep me from getting good rates/limits on credit cards but never a loan. My credit union only looks at three things, FICO score and income vs open revolving credit costs. At the time of my first loan I was somewhere around 600. I thought that was bad but was told that is a little above average ("-chuckle- No, that's about a B with the people around here").
One of the big advantages to a credit union over a bank is that it is a lot more personal. While a bank may seem personal because you know the people who work there, they have no pull in policy and aren't going to go against policy to help you out. Big bank policy is to help the bank, not you. A credit union on the other hand typically has much looser guidelines (as well as typically having lower rates) because it owned by members and as such everyone is trying to help everyone. I have even considered running for a board position but since I have very little financial experience I don't think that would go in my favor. You can bet I attend every meeting, vote on everything I can and make my voice heard when necessary.