I called CTI/Sherman Groups re: a GEMB account charge off for $1080. After much talking and frustration, we agreed on settling the account for $596. She was going to fax the info over to me and I was to call back with my bank info, but dumb me gave the wrong fax number. I called to update it and she said that the client rejected the offer. Now what?
Have you asked them for validation? Have they proven to you that the account is yours and shown how they arrived at the balance? Until they do that, don't pay them anything.
Why would you offer to pay a debt purchaser that probably paid $10.00 for the assignment rights? As Hedwig aptly noted, request validation and in addition, dispute it through the credit reporting agencies.
PLUS never give your bank info to any collection co for electronic transfer--they may take more than they agreed to. Send cashiers check after you make a copy of it.
Paying a collection will not help your score unless you can get a PFD. FICO treats paid collections the same as unpaid ones
Yes, and debt purchaser like to mark the date of last activity/status as the date paid which further damages the scores.
I appreciate all the suggestions, but... The debt was valid. I know it, they know, GEMB knows it. I wasn't just going to let the thing float out and grow even more after it was validated. My score is shot anyway. I spoke with a branch manager before this and was told that having it paid would qualify me for another car loan, leaving it unpaid (yes, even if settling it would lower my score) would not qualify me. So it appears people do care if you pay a charge-off, imagine that. I gladly gave my info for electronic transfer. They faxed me the account payoff information beforehand and the amount I agreed to pay. I settled this one and paid off three credit cards. It's a done deal and I feel better. Thanks for the advice.
I don't think anyone ever said that a paid charge-off/collection didn't matter to anyone, just that paying them off doesn't make a difference to your FICO scores. Lingering collections DO make a difference to the loan officer because they indicate potential land mines in your financial future that could impact your ability to repay a loan they grant you. As you mention, there's also the personal peace of mind that comes with knowing you don't have any outstanding unmet obligations so there is some value to paying off old debts, just not to your FICO score. It's important to remember during a period of credit chaos that the FICO score isn't your only consideration. You also have to balance things like cash flow, conscience, future opportunities, etc. In any case, congratulations on putting all this behind you.
