I had an old debt with Pacbell from 3 years ago that was owned by a collection agency in San Jose. I decided to start cleaning up my credit a year ago and disputed it with them. They sold the debt to another company, who in turn sold it to another., This new company has sent me an initial letter and I have attempted to settle with them as long as they don't report anything to the Cra's. They refuse to accept payment for the whole amount (210) and I am stuck. I am about to apply for a home equity loan and I know if this ends up on my credit report my score will drop at least 30 points. Anyone have any suggestions on what to do? Thanks
I've seen some that have sent settlement letters--I don't admit to the debt, but since this is such a small amount, I will pay the balance in full. In return have them agree to never place it on your credit reports. They then go on to say, if these terms are unacceptable, you will have no choice but to begin the lengthy validation process. (It doesn't sound like you have asked for validation yet).
