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  1. #1
    Groinlonger
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    Collection Account

    Looking for some advice on what I can do about a collections account that's showing up on my credit history.

    Backstory~

    A few months ago my mother began receiving phone calls from a law firm demanding to speak to me. She gave me their phone number and I called them back to see what was going on. They were trying to collect some debt ($26) from four years ago. They wouldn't tell me what it was for over the phone. It seemed super sketchy so I asked them to send me some additional information with more details. Apparently this equated to a dispute. They mailed my mom some information (postmarked nearly a month after the phone call) although I didn't receive this information until yesterday. The additional information said it was for an x-ray I received but didn't pay for.

    It seems like legitimate debt that I somehow neglected to pay. It's already showing up on my credit history, not sure what to do about it. I could care less about $26, it's my credit I want to look out for. It was 760 and has now dropped down to 711. It's fucking annoying because I was planning on buying a house or condo soon. Apparently simply paying off the debt marks it as paid in full, which is still damaging. I've read you can sometimes reach agreements with collections agencies to pay them and they can get it removed, no idea if this is true. Does anybody have experience dealing with this?

  2. #2

    You can negotiate with them to pay the debt if they stop reporting it as a collections account to the credit bureau's. You MUST get this in writing prior to actually making the payment. I had a stupid thing like that happen over a modem once. It was an easy fix and unless they are super dicks shouldn't have any issue complying. Also, make sure that THEY are the ones reporting it as a collections account. If they are collecting the debt but not the ones reporting it as collections you need to get to the source.

  3. #3
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    Ask for in writing for them to verify the debt, who they bought it from, etc. If they can't or won't do that you can file a dispute with the three bureaus. Document every contact.

  4. #4
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    Quote Originally Posted by Kalmado View Post
    Ask for in writing for them to verify the debt, who they bought it from, etc. If they can't or won't do that you can file a dispute with the three bureaus. Document every contact.
    Everything here. My husband last year was being threatened over a debt that was no longer even valid. He asked for proof of the debt and they never provided it which they must. Definitely document everything for your benefit. Sorry you are dealing with this.

  5. #5

    I have a similar situation to this. Sorry to hijack your thread Mojo.

    I have something on my report from Illinois Department of Transportation dated June/2010. I moved to California July/2009. I have not received a phone call or any bills for this. I have tried calling IDoT and that was no help. Asked for accounts billable, billing, collections, everything I could think of and no one was able to give me any information.
    What is my next step?

  6. #6

    Yeah get everything in writing. I just got a debt notice from a long standing utility bill back where i'm from, due to statue of limitations though it only has 1 yr left on it so i'm just going to let it run out so they can't hit my credit anymore. I do know that everytime you communicate with a debt agency it resets those timers.

    Are you saying paying off the debt in full gives you a negative mark on your score? Why is that?

  7. #7
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    Quote Originally Posted by Meresgi View Post
    Yeah get everything in writing. I just got a debt notice from a long standing utility bill back where i'm from, due to statue of limitations though it only has 1 yr left on it so i'm just going to let it run out so they can't hit my credit anymore. I do know that everytime you communicate with a debt agency it resets those timers.
    Actually it's from the last delinquency, so whenever you last threw money at it. You can talk to them all you like, but giving them even a penny resets the date of delinquency. This is why they like payment plans, because it gives them another seven years to harass you even if you never pay again.

    Though yeah, you really shouldn't talk to them at all unless you intend to pay it, and even then mail them a debt validation letter and make sure everything is legit. I DV'd my own debt (though I have student loans now, so they can sit and spin) and never got anything back, so this reminds me I should probably hit them with it again.

  8. #8

    You shouldn't even talk to them if you don't want to pay it. Simply acknowledging the debt resets the 7 year timeline. So if you talk to them and they notate that conversation in their system and have the call recorded that would count and your 7 years starts all over.

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    Quote Originally Posted by Skyylya View Post
    You shouldn't even talk to them if you don't want to pay it. Simply acknowledging the debt resets the 7 year timeline. So if you talk to them and they notate that conversation in their system and have the call recorded that would count and your 7 years starts all over.
    Probably depends on the state, but no: You have to actually make some sort of monetary transaction with them or acknowledge in writing. Otherwise they could just make up debts (and don't believe that they don't) and get you to answer a phone call. This is why you send them a Debt Validation letter first, which doesn't acknowledge the debt but challenges it.

    Yes, there are actually companies out there pushing bogus debt collection on people. It's mostly real debt that was written off, but they've obtained some tiny bullshit amount of information about it and pursue it. The moment you give them a cent on even these bogus claims they become real. Quite the business model eh? That's what you have to keep in mind: It is a business, and yes probably the scummiest kind of business on earth.

    Validate the debt, even if you aren't gonna pay it or whether you think it's legit or not. Usually so much as a challenge shuts them the fuck out, but if they don't cough up all the signed agreements with proper dates you have immediate (or like, 90 days from when you mailed them) recourse to get that shit off your credit.

  10. #10

    Maybe it depends on State. But here in Florida I was counseled to that effect by an attorney who specializes in this sort of thing.

  11. #11
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    In nc even talking to them resets it, it's state dependent.

    Get it in writing or its not valid and you should dispute it, and call the bbb on them. The fair credit collection act (or whatever its called) requires, by law, any debtor to provide you with written proof of the debt.

  12. #12
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    Quote Originally Posted by Furionstormrage View Post
    call the bbc on them
    the doctor can fix anything

    OP: what you're talking about is a pay for delete (PFD), googling should yield plenty of sample letters out there on how to handle it. Use snail mail, certified with return receipt, and make sure they agree in writing to stop reporting the debt to all 3 bureaus before you pay. Pay with money order or cashier's check so they don't have your bank account info or they may try to draw more. PFDs are very common with medical bills.

    oh, edit: find out who the original creditor was and try to negotiate the deal with them first. if they still have the debt and only hired the agency to collect on it as a middle man, they will be very willing to negotiate a deal and cut the CA out completely.

  13. #13

    First thing you need to do is dispute the charge. You can do that through Equifax/experian/etc's websites. Pull your free annual credit report, and dispute it right through there.

    9 times out of 10 medical shit gets dropped right away. Why, I'm not exactly sure.... but its worth it to dispute it. If you do not win the dispute, then take the above advice and pay the debt off. Making sure the debt collection agency will be removing the debt from your report.

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