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Need Advice on payment to Collection Agency


leilanip
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I had a car reposed in 2005. The original creditor Chase/Bank One has sold my account. According to truecredit.com 3 in 1 credit report it shows as follows:

TU

Condition: Closed (Paid)

Balance: $0

Type: Auto Loan

Pay Status:Collection/Charge Off

Exp

Condition: Closed (Transferred)

Balance: $0

Type: $0

Pay Status: Late 90 days

Equ

None reported - ***This maybe because I recently used a credit repair service to try to removed trade lines from my credit report. ***They were successful on a number of trade lines.

Anyway, the collection agency now (Asset aquisition group) say they will accept payment of $4500. Once they receive payment they will give me a release letter to give to Chase Bank. Asset Aquisition Group is not reporting on my credit report. I am not sure if it ever will if I decide not to pay them. (Maybe someone can give me an answer to if they will).

How should I approach this situation?

Thank you in advance....

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The letter and subsequent offer you got is likely the Dunning letter, which is basically your warning and a legal obligation they have to let you challenge the debt before they can report it.

I can tell you that you can bet your life it will be reported if you don't pay or successfully challenge the debt. Usually what you do now is DV which is a request for debt validation. The hope is they won't have enough information to prove the debt is yours, but in any case will buy you an extra 30 days or so before they report to formulate a game plan.

If their initial offer is $4500, they'll probably take less. You'll want to know how long the statute of limitations in your state is to make sure they can still sue you, and also assess your financial situation to see if you think they will actually find you worth coming for (such as if you have a mortgage or assets). However, if you have a conventional job in a garnishment state then they can likely garnish your wages. These are all things to consider.

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I have been in contact with these guys off and on for about 2 years now; maybe a little more maybe a little little less. (Wouldn't they report me to the credit bureau by now?) I would assume that DV's were already done because I had a credit repair service(creditrestorationbureau.com) for 9 months. I don't know exactly what they did but they were successful in removing a number of trade lines.

This letter I talked about was going to be given to me AFTER I pay them. They call it a release letter. They told me that I must give it to Chase/Bank one so they can change my status on my credit report.

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