Tater511

Settling Old Collections

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I have two old accounts in collections. They  both fall off my report in 2018. 

I have sent each creditor a (hopeful) pay for delete letter, with no luck at all. I have accepted that these collections will remain on my account until 2018. 

Account #1 is $200 and Account #2 is $283. 

 

1) Is it even worth it to pay off these debts, or should I just let them fall off in 2018? I know it won't boost my score at all, but I assume it looks better if I have no open collections. 

If I do pay them off to have them listed as "closed or paid" collections, I would like to settle these old debts for a portion of the cost (starting negotiations with 25% of each debt, willing to pay up to 50% if necessary. )

3) What the best way to do this is? Do I call and negotiate a settlement with the creditor and then get the agreement in writing? Or do I send a letter with a proposed settlement amount and see if they respond? Or should I send a debt validation letter first? 

4) If I call to try and negotiate and they refuse to take anything other than the full amount, because I have made contact, does this restart the 7 year process of the collections coming off of my account?

5) Is there any advice about getting these collections (once paid, ideally only partially, but worst-case paid in full) removed from my report at all, or since the pay for delete didn't work, am I stuck with these until 2018?

6)If I request a goodwill adjustment due to extenuating circumstances, am I able to negotiate that while only paying part of the original amount, or if I want to attempt to remove this collection entirely, should I anticipate paying the full amount owed. 

Thank you for any help, advice, or experiences!

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If they are due to fall off your reports in 2018, then it is likely they are past, or very close to passing, the MT statute of limitations.  However, your letters acknowledging these alleged debts may have just reset that, giving them another 5 years to legally collect these. 

It is always very important to understand your state's SOL and how your actions may effect that.   I would stop contacting the creditor directly at all.   What type of debts are these?

If I had 2 small collections, I would dispute them with the CRAs and if needed, follow up with MOV letters.

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