What happens when a collection agency won't talk to you?

Tell them if they want the money they will give you a letter showing it will be removed. No if's and's or but's about it.

 

Remember if a ca's mouth is moving you can bet they are lying!

 

Did you ever write a dispute over the debt (to the collection agency)? You may ask for/offer a different "labeling" on the account, (for exchange if Payment In Full), of "suppressing" the account on credit reporting. "Suppressing" an account means that it is only visible to you and the credit reporting agency. If anyone else pulls your credit report, it cannot be seen by them. I believe that a suppressed account does not factor into credit scores either.

This way they are "reporting the tradeline", but for all purposes it is "not" on your credit report. For the 75% difference the CA will collect, I would say this is an attractive option for them.

As to the "legal requirements" of reporting, there is no "legal requirement" to report any credit history by any creditor. The "legal requirements" come into play when you report. For, IF you report, then by "legal requirement", you are required to report "accurate and complete" information to the credit reporting agencies. This is clearly defined in the Fair Credit Reporting Act.

Now, there "may" be a legal requirement in pursuing collections of a debt to show collection effort (should anyone decide not to pay, and further collection methods are required). If a CA pursues legal recourse, there may be the "legal requirement" to show a sincere effort in accordance woth applicable law. So, the CA may be "confusing" the legal requirements of reporting to credit reporting agencies.

Also, what was the date of the original notice from the CA? Generally, if the debt is paid within 30 days of notification (and Paid In Full), a CA will NOT report the tradeline. Collectman can probably give better opinion of this "practice". Is this "Settlement Offer" letter the first you have recieved?

I think the only obstacle you have is in speaking to someone who is rational (ina business approach) to this matter. I would say you have some strong leverage to prevent reporting of this tradeline.