I need advice. I recently contacted one of the collection agencies on my credit report called Accounts Svcs of Colorado. I had an old medical bill of $718.00 on it from 1996 and made pmt arrangements in 1997. I thought I had finally paid it off (I didn't know I still had $80 left in the balance!) and then saw it on my credit report. When I had called the Collection agency, they said that w/interest accrued, it totaled $173! I know I could pay that off,but I wanted to know if they would remove it from the credit report considering it was an old debt from my credit report. I really don't want it listed as collection charge off. They said that they don't do that and it would be listed as Paid in Full and not Paid charge off. Then I requested a letter from them stating that, but the representative told me that they don't mail out letters until the payment is made. Is that true and will it even improve my credit score? Also, if I pay it, will the 7 years start from the day I pay it or from the past due? It is scheduled to get off my credit report on November 2003 and I didn't know if it was better to pay for it now or just wait until then. Thanks for any help on this Janet
My first instinct is to pay it off, but my better judgement is to make them prove you owe the debt. Send out a validation letter. The one that works for me is "I don't know anything about this debt. Please provide me with something that bears my signature and all of the statements so I can review my records accurately. Thank you." Don't include a SSN or account number. That is their job to prove that you owe it. If they prove that you owe the debt, then pay it off. It is so old it probably isnt affecting your score anymore anyways. Good Luck!
Paying it does not restart the 7 years. But if it was me, at this point, I might tell them since it is against their policy to delete it from your report, it is against your policy to pay interest. You might want to check your state laws because I know some states do not allow collection agencies to add in extra costs such as interest, collection costs etc.
How do you get it doesn't start the Wait a minute LKH that doesn't sound right..... I was told by my lawyer that the clocks starts from the date of last payment. If you make a payment on a collectin account..... You can and will start the clock all over again! So if she leaves it alone it will fall off... if she pays it..... it starts the clock from date of the last bill they receive! (which would start her clock in 02.. ouch) And being the asses they are ... they would do that to her!!! **if i am wrong someone please correct me** First off.. i've never heard of a CA who can't send anything by mail until they get paid!! THATS B.S..!!! If they don't want to delete it ....THEN don't pay it! Don't call them anymore, send a validation letter (the CO is so old it's will be hard for them to validate it), and a cease and desist letter (so they can't harass you into paying the debt). Hopefully you can get it off that way.. and keep your money! It's been proven.. a paid CO doens't help your score any better than a non-paid CO!!!! Keep us posted
Re: How do you get it doesn't start the Sorry, but your lawyer is wrong. Here is an opinion letter from the FTC regarding accounts that have been charged off or transferred to a collection agency. 2. Is the reporting period extended if (A) the original creditor sells or transfers the account to another creditor, (B) the consumer responds to post-chargeoff collection efforts by making a payment on the debt, or (C) the consumer disputes the account with a CRA? Does it matter whether the 7-year period has expired when any of these events occurs? No. In enacting the new provisions discussed above, Congress intended to establish a date certain -- 180 days after the start of the delinquency that led to the chargeoff -- to begin the obsolescence period. It did so to correct the often lengthy extension of the period that resulted from later events under the original FCRA. Enclosed are two staff opinion letters (Kosmerl, 06/04/99; Johnson, 08/31/98) that discuss the impact of these provisions, and the legislative history relating to their enactment, in more detail. Because the commencement of the seven year period is now described with some precision by the statute, it is our opinion that none of the subsequent events you listed -- sale of the charged off account by the creditor, or a payment on or dispute about the account by the consumer -- changes the allowable period for a CRA to report a chargeoff.
Re: How do you get it doesn't start the If there is anything I have picked up on this board it is NEVER do anything with a c/a until you get it in writing. I am currently going thru 2 different c/a companies and both said if I paid they would not put it on my credit. So that day, I made payment arrangements EFT. Well, found out 2 weeks later both companies put it on my credit anyways. I have read alot of posts Here and there that state a paid collection does nothing for a fico score that a charge off does already. Maybe a point or two tops? So save your money and apply it towards higher interest rates, in lieu of a high fico, until YOU GET EVERYTHING in writing, FIRST!! I am learning everyday, and unfortunately I had to learn the hard way. My theory (Again, I am new to this as well) is if they are going to put it on my credit and ruin it anyways, regardless if the tradeline says Charge-off or Paid in Full I am going to keep my money. Unless your applying for a home. Everything must be paid off. hope this helps
Re: How do you get it doesn't start the I completely agree. In fact I told her above I would probably tell them to shove it. But, the fact remains, should she decide to pay it, it will not restart the 7 year clock. By the way, LAT, you've learned well so far. The link to the opinion letter is here: http://www.ftc.gov/os/statutes/fcra/amason.htm The link to all the FCRA opinion letters are here: http://www.ftc.gov/os/statutes/fcra/index.htm
Thanks everyone for your advise. I will mail out the validation letter next week. Also, if I had made the pmts by checks in 1997 or money order, would that be considered a positive validation? Thanks again for your help Janet
Just because you paid a debt you THOUGHT was yours doesn't mean that it actually WAS yours. Make them prove it!
I have a phone bill I beleive was charged off and is showing a 0 balance.I just got a letter from a CA demanding $ 75.00 on the account.How can a CA dun me 75 bucks on this?IS That legal?Do I owe the $75.00?
I get a bill in the mail for my CC. I pay it every moth. The next month, I go over last month's statement and notice a charge that I did not make. Does that mean that I acknowlege the charge because I paid the bill? NO. It means that I'm a good consumer that pays my bills on time.
Erica, tagging on to this, would it be better to send the validation letter to the collection agency first, or to send the procedure request letter to the CRA, or even both at the same time
The original poster did not say that she disputed with the CRA's. SO, don't send a procedure request. They didn't do anything. SO...send a validation one week. Make sure you get the green card back and that day, mail out your dispute to the CRA. Simple. If they verify it then, I would send out a procedure request to the CRA, but only after dispute. Make sense?
