I just received another letter(yes, I've gotten other letters) from a collections agency due to a bounced check in 2001. But this account is not listed on my credit report. whats the best method to go about handling this? I can't say "I will pay if you delete this from my credit report", because it's not on there (yet?). So do I wait until it is, or pay it off now and hope it doesnt show up later, when I will have no leverage? Thanks, Lesley
Just because a collection agency isn't reporting, doesn't mean you should ignore them. Now, how you choose to proceed depends on a number of things. #1) Is the 'debt' outside of the statutes of limitations in your state? #2) What is the amount of the 'debt'? Basically, I usually answer these questions personally before deciding how to attack a CA. The goal is to not end up getting sued, unless there is a good chance that I'll win. If the amount is small, the chance of being sued by the CA is smaller than if the amount is larger. Likewise the older the debt, the less likely agressive action will be taken. These are generalities, yes, you can be sued for SOL and near-SOL debts, but the CA probably will do the same calculation to see if they want to sue. Remember, that they have to pay out $ to get the court date, and if they don't think there is a snowballs chance in hades that it'll actually be worth spending the $, they won't. If you calculate that chances of being litigated against are small, then the first step like always is validation. You want to see what they do and do not have. Don't edit the validation letter that you would normally use to refer to a check, just treat it as a standard debt.
