So, after a lengthy journey getting my credit score up I feel as though I have ruined it in one big mistake. I had a Dell Account go 120 days late, and they sent it to a Collection Agency. Pentagroup is the Agency. Dell won't deal with me any longer, so what should I do in negotiating with Pentagroup? How do I fix this fast? They offered "Paid in Full" for 60% - Should I do that? Should I send a "Paid for Delete" Letter? Why won't Dell just take my payment? Which is better to keep my credit from falling any lower? Thanks!
A "paid in full" delinquency is just as bad as an open delinquency as far as most evaluations of your credit report go. However, most CAs abuse the reporting methods by reporting your debt as "new" every month. Thus, a 2-year-old paid delinquency is better than a new-this-month delinquency, paid or otherwise. 60% may be reasonable, assuming they haven't inflated the interest charges. You may be able to negotiate lower, but if I were in your shoes and the debt was valid and not past the SOL, I'd probably take it.
Thanks, Yeah, the debt is new. They just transferred recently. I wonder if I pay fast enough if I can keep it off my credit report altogether. I hope so.
You could always try asking. Just keep a weary eye on them and expect it to go on your report no matter what -- that way, you won't be disappointed. There are a lot of steps you can take to ensure that your rights are being protected, but if you're 150% positive that you owe the debt, that they are the ones authorized to collect the debt, that the amount of the debt is correct, and that the debt is collectable, then yeah, give it a shot. Try a nice letter. Don't grovel or beg, but be professional and firm. Use phrases like "Thank you for calling this matter to my attention" and "I wish to resolve this matter quickly and amiably". No guarantees, but a slim chance is better than no chance.
and I should handle everything by letter? I talked to them on the phone yesterday, Pentagroup, and they were pleasant enough. (Not that that means anything)
60% isn't bad, but it's too bad it went on your CR right away. I'd at least take a shot at getting it removed completely. They certainly don't have to go along with it, but they're a business who wants to make money and they may be willing to remove it from your CR if you offer to pay it off. Then again, they may so "No, we always report accurate information, etc." If you can't get them to agree via a sample letter or on the phone, you may have no choice but to pay it off. Having it paid in full is still better than being an outstanding debt on your record.
True, but I think when you look at it in terms of the way CAs abuse the system by constantly re-reporting debts as "brand new" ("reported on" date, not DOLA), having a paid debt is better in that it will at least freeze that process. May not make a difference today, but a year from now that paid debt will be a year old while the same unpaid debt will be "just reported".
Yes, always in writing. There are far too many horror stories from people who thought they were dealing with a "reasonable" CA only to wind up getting shafted because they didn't have anything in writing. Never hurts to send it certified mail with a signature card, either.
