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Paying off collections? Need help...


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Should you paying off old collections if you can’t get a removal letter? I have seen it drop scores 70points.

Does it matter if the acct is old or new collection if you should pay it?

How do you know it is your debt?

How do you know they still own the debt?

I own a account for you send me 300 bucks tomorrow.

Do you know that a JDB pays PENNIES on the dollar for a debt from a creditor in a bulk purchase and tried to stick you for the full amount, yup, on a 200.00 debt they paid less then 2.00 for it and will try to stiff YOU for 230.00.

Did you also know that collection agencies are the most profitable company?

Do you know why?

Because of the reason I stated above, they pray on unsuspecting people that have fallen on hard times some through no fault of their own and some that just didn't pay their bills.

Before you EVER pay a JDB follow proper procedure.

Send them a DV, if they send you what you feel and the law requires and are satisfied with that result then offer a PFD, start your PFD at whatever percentage you feel comfortable with (remember they only paid pennies on the dollar for what you are about to make them a HUGE profit on) I start at 15%, if they don't delete and are past the SOL in your state tell them to kiss your hiney, they can't sue or file a judgement after the SOL has expired.

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before you stary paying things be sure it is indeed yours... I agree with cookie for the most part. Do not just settle get the best deal for you pay as little as you can with the most benifit to you! PFD is best but you can settle for less money and have it marked Paid... there are many options. Read read read. I read this forum for about an hour every single day trying to become informed. Had i read this forum more carefuly in the beginning i think i would be in better credit shape now. but i will be time heals all wounds

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Long before I came to this site, I had a debt that went into collections.

Foolishly, I paid a CA thinking I had taken care of what I owed. The CA sent me a receipt stating that my balance was $0.

However, the CRAs still listed my debt - only with a different CA. After much investigation I learned that the CA that I paid never 'owned' the debt. They were just collecting on part of the OC - who did sell the debt to the CA listed on my CRAs.

Needless to say, neither the OC (listed with a 'charge off') nor the final CA (listing the 'past-due collections') cared one single bit that I had a piece of paper stating that my balance was $0.

We are offered a few protections as consumers. They are not necessarily quick or easy, but they do help avoid headaches like I encountered. Make sure you know that the party you are paying actually "owns" the debt you're paying (if it's legit they should be able to properly respond to a DV).

And make sure you know the consequences of what happens when you send them payment - what will your CR show, if you're paying less that full amount, are they able to continue collecting the balance? or worse yet will they sell the remaining balance? are there tax issues and will you receive a 1099? This is why we all recommend you get everything in writing before you pay.

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