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To Take The Buy Out or Not to?...That is the Question


max_bialystock
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I posted this in the wrong group before.

Hopefully I have found the right one this time

I have been told by a collection agency that they will offer me a buy out of 1.200 on a debt of 1,600.

But they claim that if I take the buy out it will not benefit my credit rating.

My friend says that is a load of garbage and I should take the buy out because it won't make that much of a difference.

They claim 25 - 75 points? Is that worth $400.00

Also, while it's true I have taken a bit of time to pay this deby off, have always tried to keep payments up. Job went south. The other thing is, can I contest a debt once it has been given to a collections agency? The agency claims they have no record of past account activity.

Advice? :?:

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I have been told by a collection agency that they will offer me a buy out of 1.200 on a debt of 1,600.

But they claim that if I take the buy out it will not benefit my credit rating.

My friend says that is a load of garbage and I should take the buy out because it won't make that much of a difference.

They claim 25 - 75 points? Is that worth $400.00

A paid collection is just as bad [in the eyes of FICO] as an unpaid one. A collection is a collection! If you're going to pay it, make sure you negotiate a PFD. If you don't, you'll be stuck w/ a paid collection on your CR, which is not so easy to have deleted.

can I contest a debt once it has been given to a collections agency? The agency claims they have no record of past account activity.

It's called debt validation (DV).

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What is a "PFD"?

I have been told by a collection agency that they will offer me a buy out of 1.200 on a debt of 1,600.

But they claim that if I take the buy out it will not benefit my credit rating.

My friend says that is a load of garbage and I should take the buy out because it won't make that much of a difference.

They claim 25 - 75 points? Is that worth $400.00

A paid collection is just as bad [in the eyes of FICO] as an unpaid one. A collection is a collection! If you're going to pay it, make sure you negotiate a PFD. If you don't, you'll be stuck w/ a paid collection on your CR, which is not so easy to have deleted.

can I contest a debt once it has been given to a collections agency? The agency claims they have no record of past account activity.

It's called debt validation (DV).

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If you owe the money and have been making payments on it, then yes you should accept their offer if you can afford to do so. Yes, you can contest the account, but having made payments to the creditor will not help your case. You would not want to run the risk of being sued over such a small amount of money. Finally, don't be concerned about your credit score --- a paid collection is a better argument then an unpaid collection.

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Negotiate for PFD for collection entries...decide if you can afford 1200 and what that is "worth" to you...also remember that paying this will re-age (someone correct me on this if I'm wrong) because your last activity date will be more recent

It wouldn't restart the clock.

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Negotiate for PFD for collection entries...decide if you can afford 1200 and what that is "worth" to you...also remember that paying this will re-age (someone correct me on this if I'm wrong) because your last activity date will be more recent

It wouldn't restart the clock.

That depends on what state he's in, and it will be considered recent activity.

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If you owe the money and have been making payments on it, then yes you should accept their offer if you can afford to do so. Yes, you can contest the account, but having made payments to the creditor will not help your case. You would not want to run the risk of being sued over such a small amount of money. Finally, don't be concerned about your credit score --- a paid collection is a better argument then an unpaid collection.

Yeah if your already paying , you might as well continue. but a paid collection is not as good as unpaid depending how close to sol you are. Collections paid or not can be removed because generally when you dispute or request validation they cannot prove it and in a lot cases have to be removed from your credit report. Paid collections are still considered collections.

make em validate

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