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What's better? Paying or not paying CA


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I have referred to the DV illustration and the entries in the forum but don't quite know what to do. I truely owe a CA $950. The illustration says if they validate the debt, try to settle. They sent me validation from the OC with my signature. They have not violated anything. The CA is allowed to collect in Texas.

I've read where PFD doesn't really work unless they've violated. Some say paid collection is worse or at least as bad as an outstanding collection debt.

I want to purchase a car but I'm not sure what's worse on my CR: A paid collection or not paying it at all. It's SOL is May 2012. Please help. Thanks in advance

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There is no difference in FICO either way.

Some Home loans (and school loans) will require that outstanding collections are paid.

The only other reason to pay a settlement is if you are being sued and believe they are likely to get a judgement for the full amount anyway.

Without PFD or imminent threat, we don't pay CA's. At minimum you'd want to contact the OC to see if they'll take it back and handle it with them.

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You also need to differeniate between a CA collecting for the OC (who still owns the debt) and a junk debt buyer (JDB). If the OC still owns it, call the OC and try to work something out with them...including recalling the "right to hassle me" from the CA. Tell them you'll be glad to pay them if they get the CA off your reports.

If its a JDB, there's lots more than just a copy of the original contract. There's the whole "chain of custody" thing...

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Some OCs actually sign contracts with CAs saying, in effect, that all money will go through them so they can take their percentage.

If it were me, I'd call the OC again and work your way up the food chain. Find someone who has the authority to make a decesion...and tell them it is your personal policy NOT to deal with CAs, and if they want their money, you'll be happy to send them a check...otherwise, they can take you to court and you'll let the judge sort it out. Dealing with a CA just gets you a "paid collection" on your reports which does you no good at all.

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