Paying off collections

Submitted by Anonymous (not verified) on Sat, 08/28/2010 - 05:38
Forums
Credit repair

Hi guys,

I recently discovered that I have two collections. There have been no activity on these accounts for several years. I had moved from the place and forgot about them. They didn't have any way to contact me, so they must have sent them to collection. They are within the SOL in my state (6 yrs).

The collection agencies are not reporting on my credit report but I feel an obligation to pay them.

However the problem is they have tacked on interest and fees that are 4 times the original debt. I want to make an offer to settle for some portion of the debt, but I'm afraid if I contact them, they will somehow figure out how to report it.

Either way, I want to pay, but I don't want this to show up on my CR. Any ideas on how to approach the CA?

Aaron

Hi Cubert,

I think you are the first person so concerned about your obligation:) this is good indeed.

Moreover as the Statute of Limitations on these debts have still not expired, it is better to pay off the debts. However, before you can actually try to pay off these debts I think it is better to validate these. If the debt amounts come back validated you can negotiate settlements with the collection agencies and pay these off.

Before making the payments get the settlement agreement in writing. Also, request the collection agencies to agree to a "Pay for delete" (PFD) agreement. With PFD all the negatives get removed. However, not all collection agencies agree to a PFD.

Thanks,

Aaron
Thanks,

Aaron

Sat, 08/28/2010 - 07:39 Permalink
Paris (not verified)

Hi Cubert,

Aaron has given you great advice. I would only like to add that if the collection agencies do not agree to PFD, the collections will get listed on your credit report as "Paid".

Thanks,

Paris

Sat, 08/28/2010 - 12:53 Permalink
cinnamngrl

Don't start with the PFD. Send a DV letter to each collection agency.

Go to https://www.annualcreditreport.com/cra/index.jsp and get hard copies of all your reports. it is important to get hard copies of all your reports so you have an accurate picture. You have the right to get at least one free copy of all three reports each year.

Sat, 08/28/2010 - 14:02 Permalink