Hi guys,
I had a credit card debt and it went to collections and the company harassed me for a bit, but because I didn't have any money at the time, I couldn't pay the debt. However, I got a new job in February and have been able to pay off rest of the debts. Only this is left.
Now, it hit the 7 year mark in May, and when I pulled a credit report in June, it had been removed from my credit report. With this debt finally off my report, I had a clean credit report and a good credit score of 710.
However, today in the mail, I just received a letter from a collection agency offering to take 40 percent off the original debt amount. I can't check my report now because my realtor has stated that I shouldn't let anyone pull my credit report now as it might affect my mortgage. I am trying to buy a house.
My first instinct, which I resisted, was to call the collections agency and ask wtf, but I thought it might be wiser to get some information here before doing that.
What are my options here?
Collections on a debt not on the credit report
Hi Tocho,
When a debt falls off from your credit report it necessarily does not mean that the debt is uncollectible. You need to find out if the Statute of Limitations (SOL) on this debt has expired. If the SOL has expired you can send a Cease and desist letter to the collection agency.
However, if the SOL has not yet expired, it is better to pay off the debt. Get the settlement agreement in writing.
Thanks,
Aaron