Got a letter from a collection agency today saying we owe $1092 for a home phone bill from 2000. They are offering to 'settle' for half ($546).
The old address is in Louisiana, the collection agency address is in Ohio, and we now live in Texas. We get a copy of our credit reports yearly --- this has never shown up.
I called to request a detailed account and was told I had to submit a request in writing within 30 days. They also tried to milk me for information... and hung up on me when I didn't give.
So... pay it, dispute it, or ignore it? Which state's laws are in effect here? Our main concern is harm to our credit in the next few months as we plan to purchase a home before summer.... but paying a debt that is invalide and/or past the statute of limitations isn't on my list of 'fun things to do' either.
Thanks for any advice!
Hi Laura
Since you have received the letter from the collection agency, you should ask for debt validation within 30 days from 27th Jan 09, ie by 26 Feb 09 by certified mail else according to the Fair Debt collection practices Act, it will be considered that you owe the debt and you will be required to pay it off. However, the creditor or the collection agency on receiving your debt validation letter must validate the debt by 30 days.
Yes, if they can validate the debt and agree to settle for half the outstanding amount, you should get the agreement in writing from them. This is because after getting half of the outstanding amount from you, they may send you a collection letter again for recovering the remaining half and you will not have the proof that they themselves have agreed to settle for half the amount.
Moreover, you should pull out your credit report to check whether the CA is listed in your report against the debt. If you find them listed, you can negotiate for pay for deletion agreement.