I am a newbie, but after reading the primer and several threads, I think I can expect some opposing viewpoints on my situation. Hereâ??s the short version. Billed summer 07 after moving for cable, internet, phone bundle in new house. Service wasnâ??t provided, and I didnâ??t pay. Billed for about $270, collection agency wants $135. I didnâ??t realize what a ding this would put on my credit report, and I now think the small amount of money does not justify the amount of time to fight it. If my end goal is to improve my credit rating, what do I need to get in return for my payment to the collection agency? Do I need to pay the whole amount or just the settlement from the CA? Should I still dispute the debt even though I will pay it to explain the fact that it went to collection in the first place? I can provide more details or answer any questions, but I wanted to keep this short. I appreciate your time, ideas, and suggestions. Thanks
Have you checked to see if it is being reported? The goal is first: to make sure it doesn't appear on your credit report and second: to pay it if you think it should be paid. If it is on your report AND you pay it, it will stay there, damaging your credit score, for the next 7 years. If it is on your report and not paid, you have some room for negotiation. If it is on your report and paid, get used to seeing it there for the next 7 years. The irony, from a consumer's perspectives, is that a paid collection is just as damaging as an unpaid collection. The only difference is a paid one is harder (almost impossible) to remove. My advice would be if you can't get them to remove it (e.g. point out how it was reported by mistake) then there's little benefit to you in paying it.
CCbob, Thanks for the reply. That's what I was afraid of. The collection is on my credit report. Two quick follow-ups. Is it 7 years from when the collection was posted, or does the clock restart if I pay it? You mentioned I have room for negotiations since I haven't paid. Can the collection agency do anything to get it removed, or at this point do I need to deal solely with the credit reporting agencies to protest the debt? Thanks!
Why don't you contact the oc to find out why they sent out a collection when they fail to preform the service you contracted to do.And have them take it back and remove it from your report.
Good advice. If they pull it back from the CA, then the CA can't report. If they've sold it instead of assigned it, however, they may not be able to get it back. The reporting agency can't remove it unless the collection agency either removes it or fails to respond to a dispute. The collection agency is doing the reporting, the CRA just distributes the information provided to them.
