Here is an interesting one. Hoping for some guidance in what to do. Just received a letter from ERS olutions Inc a Wixom, MI collection Agency. Dept of $104.49 is due. This is the first letter and first time I have heard of a debt I owe. I have a unblemished report for the last two years. They are colletion for Paypal.com. I called Paypal.com and found out that this is for a transaction back in August of 2000!!!! Since $105.00 is nothing to me I figure I have two routes. 1. Pay Paypal.com the full balance. If I do this will the collection still be on my record? 2. Not pay since the debt is so old. My concern is that this collection agency will bit my credit reports/score. Any thoughts on how to proceed?
Definitely DO NOT pay anything! Currently, the debt is too old to legally appear on your credit report. However, once you pay, the paid collection can appear, dragging your scores DOWN, rather than improving anything. Also, a debt this old has most likely been SOLD to the collection agency--usually for pennies on the dollar. Most likely, ER Solution paid $2 to $3 to buy this account, so if you pay the full amount, they reap a HUGE profit. Furthermore, 10 years is longer than the statute of limitations in any state, so the risk of a lawsuit is pretty much nil. I would simply send the collection agency a cease and desist letter demanding that they never again contact you about this alleged debt. Send it Certified Mail Return Receipt Requested, so you have proof of delivery in case they keep harassing you.
