JohnD2019

Should I pay collector?

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Living in Texas... I've got an old debt with a bank credit card that has changed hands several times. It is well past 7 years old and doesn't show on my credit any more. Before doing the research, I made a settlement agreement with ARA to pay about 2K to settle it out. I also paid a couple hundred dollars at that time I guess to show I was serous about settling. I've since found out that they can't sue me over the debt any more and I probably should have blown it off. My question is, did I mess myself up making a settlement agreement, or is it safe to ignore them? I've recently had some medical issues and it's more important to me to stay current on that. Any advice would be greatly appreciated.

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2 hours ago, JohnD2019 said:

My question is, did I mess myself up making a settlement agreement, or is it safe to ignore them?

You probably did.  Can you post a copy of what you signed with your personal information blacked out?

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3 hours ago, Clydesmom said:

You probably did.  Can you post a copy of what you signed with your personal information blacked out?

Sure. This is everything I have from them. I haven't technically signed anything yet, just a recorded verbal agreement.

20190408_180831.jpg

20190408_181017.jpg

20190408_181158.jpg

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Dang. It appears that you created a new agreement to pay which did likely reset the clock on suing you for defaulting. To be certain I would take that to a Consumer Attorney to find out if making that payment and the verbal agreement are legally binding.  I suspect they are.

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Shoot. I missed their deadline too because of the issues I was having. They called today saying they sent a final notice, but they said they'd extend the offer for one week. Any suggestions for covering my rear? The hospital reduced my payments so I'm comfortable with paying the agreed upon amount, but I'd hate for them to turn it back around on me and try to get more later.

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Which bank was the OC for this account?

 

When you talked to them, did they mention the debt was too old to sue you for?

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17 hours ago, SimplyJay29 said:

From my experience, its never good to pay the collections.

While that may have been true in your own case, there are times when people will have to pay a debt collector to accomplish certain things. Like obtain a mortgage, for example. 

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On 4/8/2019 at 12:42 PM, JohnD2019 said:

Living in Texas... I've got an old debt with a bank credit card that has changed hands several times. It is well past 7 years old and doesn't show on my credit any more. Before doing the research, I made a settlement agreement with ARA to pay about 2K to settle it out. I also paid a couple hundred dollars at that time I guess to show I was serous about settling. I've since found out that they can't sue me over the debt any more and I probably should have blown it off. My question is, did I mess myself up making a settlement agreement, or is it safe to ignore them? I've recently had some medical issues and it's more important to me to stay current on that. Any advice would be greatly appreciated.

If the debt is sold to a collection agency you never have to pay it, just dispute it with the proper letters, if they can not verify the information they have to delete it. I would not be talking to the collections agency if it is already on your credit report, I'll send my letter to the credit bureaus. If it hasn't made it to the credit bureaus then you can send a letter to that agency. They will not be able to verify the info which means they have to close the collection case. 

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5 minutes ago, c4yurself said:

If the debt is sold to a collection agency you never have to pay it,

That is not true. 

 

6 minutes ago, c4yurself said:

just dispute it with the proper letters, if they can not verify the information they have to delete it.

The  OP stated it no longer on his credit report.  What are the “proper letters”?

8 minutes ago, c4yurself said:

They will not be able to verify the info which means they have to close the collection case. 

How do you know a collection agency will not be able to verify?

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5 minutes ago, BV80 said:

That is not true. 

 

The  OP stated it no longer on his credit report.  What are the “proper letters”?

How do you know a collection agency will not be able to verify? Because they don't own the original contract. Per FCRA

 

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31 minutes ago, c4yurself said:

Because they don't own the original contract. Per FCRA

In which section of the FCRA is ownership of the original contract required?   Did you know that JDBs are allowed to report to credit reporting agencies.

From the Consumer Financial Protection Bureau -page 8

Once the account is in collections, the creditor, debt collector, or debt buyer can report the account to one or more of the three largest nationwide consumer reporting agencies (NCRAs).

 

https://files.consumerfinance.gov/f/201412_cfpb_reports_consumer-credit-medical-and-non-medical-collections.pdf

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