Ok, this 'friend' of mine started the journey to clean credit about 2 months ago. Without a single visit to this site, my friend (not me!) sent a letter to everyone who placed him in collections in the last 7 years. Anyway, my friend, is making payments on a 5 year old medical bill ($200 total) and will make his last payment this month. My friend (okay it's me!!!) is now better informed and is afraid that this last payment will re-age the account, change the status to derog/paid and not help his credit score one bit!!!! What do I do?! Is this a moral dilemma? The creditor has told me that they will not delete, they will not settle, and they are going to re-report me if I don't finish my payments. Yikes!
It does happen but it is illegal for them to do that. You can be almost certain that is exactly what will happen. [/quote] Is this a moral dilemma?[/quote]Not in my opinion it isn't. In my opinion it is much better to have them re-report as an unpaid chargeoff than it is to have it report as a paid charge off. The reason I feel that way is that if you pay the debt you then basically admit that it is your debt and you will have a much harder time getting it off. If the debt is really old it probably isn't hurting your scores all that much anyway. At least that is what I have heard others say.
Chipper, There is a "new" opinion with regards to medical accounts being discolosed on your credit reports, something to do with a law referred to as "HIPPA". This might really help you in your situation. Here is a link for a lengthy discussion on the topic: http://www.creditboards.com/phpBB2/viewtopic.php?t=400
Wow, you both are a great help! I'm soaking in as much as I can, and appreciate the fact that I get so much help on my way to credit omniscience. Thanks!
Chipper I am hoping credit omniscience is a good thing. It has rather regal ring to it I must say! good luck pb
