What Will Happen?

[4mycredit]

I am going to pay a CA that has been reporting, and updating since 4-03. It is my only baddie, and my scores are 700+. After they report it paid, am I going to see a huge score drop? Thanks.

[thomassl]

Once you pay it, it will show as a "Paid Collection" which carries the same amount of weight as an unpaid collection! If you do pay it, first make sure that the CA owns the debt as only the owner of the debt has the power to remove it from your credit report. Also in most states, paying on a debt resets the SOL! Your score will soon go up only if it is removed completely from your credit report! Check your credit report for the date of first delinquency to determine exactly when it will fall off your credit report (7 yrs.) If you can get a "paid for delete" I would go for it...otherwise since your score is already 700+, I would leave it alone for now!

[Robert Nashville/Savannah]

Just a point of clarification, while the SOL is "reset" when you pay a debt, it is also immaterial as once the debt has been been paid, the creditor has nothing to support a cause of action.

I do strongly encourage the OP to properly vet this CA and make sure they have the legal right to collect the debt; just because they are reporting does not prove anything and I too would at least ask for a PFD.

Also...ANY agreement MUST BE IN WRITING and that's especially true if you are settling the debt for less than the full amount owed.

[4mycredit]

Once you pay it, it will show as a "Paid Collection" which carries the same amount of weight as an unpaid collection! If you do pay it, first make sure that the CA owns the debt as only the owner of the debt has the power to remove it from your credit report. Also in most states, paying on a debt resets the SOL! Your score will soon go up only if it is removed completely from your credit report! Check your credit report for the date of first delinquency to determine exactly when it will fall off your credit report (7 yrs.) If you can get a "paid for delete" I would go for it...otherwise since your score is already 700+, I would leave it alone for now!

It falls off in about 18 months. The SOL expires in about 6 months, and they are becoming very aggressive. THey have good media, so the DV is over. I have requested PFD, but they were not receptive. I fell like I am down to paying, or going to small claims, as they are local, and suit would be easy for them. So, once it updates as paid, scores should be ok then?? I am scared to death of paying, and seeing my score drop 100 points. Thanks for your help!!!

[Robert Nashville/Savannah]

Perhaps you just need to press harder for a PFD.

In any case, having a short-term drop in a credit score from a paid bad debt is a lot better than a judgment being on your record for years longer...besides that, if you owe the money and have the ability to pay it, why would you not do so?

[ShortBus]

If you do decide to pay, dispute the TL anyhow. Sometimes a CA won't both to verify if they already have their money. If that doesn't work, write a letter/email to a higher up at the CA and ask them nicely to delete. I've personally had success with both tactics. The later method even worked on a large JDB that is despised around these parts.

[4mycredit]

If you do decide to pay, dispute the TL anyhow. Sometimes a CA won't both to verify if they already have their money. If that doesn't work, write a letter/email to a higher up at the CA and ask them nicely to delete. I've personally had success with both tactics. The later method even worked on a large JDB that is despised around these parts.

Thanks, I will try that if it comes to it, and it probably will!!!