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Should I pay or not (small charge off & small collection)


Zeljka411
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Hi, and thank you. 

My credit score = 551 middle

0 active tradelines

0 tradelines reporting

1 closed account (charge off by Bridgecrest Auto Loan in the amount  of $299) in 2019.   Balance showing at $299.

1 collection (that is NOT showing on my credit report).  This was a Capital One Charge Off for $443 and it was being reported on my credit report BUT it has recently fell off of all 3 reports ON ITS OWN.  The collection company (Portfolio Recovery Assets) is NOT reporting this as a collection and they bought the account in Jan of 2021. 

 

Long story short the only line item I have on my credit report is the $299 charge off (no recent credit inquiries).  Since the amount is so small, will there be any benefit to paying it off?  Also, so I pay off the outstanding collection even though it is not being reported on my credit report?

My plan is to try and apply for 2 secured cards (and 1 credit builder loan) to see if I can boost my scores into the 600's but want to know if I should handle these items 1st.    

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11 minutes ago, Zeljka411 said:

My plan is to try and apply for 2 secured cards (and 1 credit builder loan) to see if I can boost my scores into the 600's but want to know if I should handle these items 1st.   

Get ready for the lawsuit.  The reason the account dropped off on it's own is because PRA is getting ready to sue and removing it temporarily eliminates the possibility of a counter claim.

Cap1 does not have arbitration and PRA does delete if you pay/settle.  It might be best to settle this account first so they don't add it back on and you don't have to fight a lawsuit then start the rebuilding process. 

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  • 2 weeks later...
On 4/21/2021 at 10:28 AM, Clydesmom said:

Get ready for the lawsuit.  The reason the account dropped off on it's own is because PRA is getting ready to sue and removing it temporarily eliminates the possibility of a counter claim.

Cap1 does not have arbitration and PRA does delete if you pay/settle.  It might be best to settle this account first so they don't add it back on and you don't have to fight a lawsuit then start the rebuilding process. 

I agree I had a collection with Jefferson Capital went off my credit report just before I was hit with lawsuit. 

You can probably settle for less than half (likely a 1/3) and since it's remove they probably have no problem agreeing to kept it that way.  

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  • 1 month later...
On 4/21/2021 at 9:14 AM, Zeljka411 said:

  This was a Capital One Charge Off for $443 and it was being reported on my credit report BUT it has recently fell off of all 3 reports ON ITS OWN.  The collection company (Portfolio Recovery Assets) is NOT reporting this as a collection and they bought the account in Jan of 2021.

When you say "on its own", do you mean the 7 years passed and the credit bureaus removed the account, or Capital One deleted the account on their own? If the account fell off your credit reports because the time had elapsed the account could be reported then PRA buying the account is moot. If the statute of limitations has passed, then it's passed. PRA is notorious for making calls they may not have your express written consent to make to a debtors cellular phone. That means you could have a claim against them under the Telephone Consumer Protection Act, but only if the number they are calling you is a number that you did not ever provide to Capital One. Any consent Capital One had to contact you by means defined under the TCPA would extend to the debt collectors as well. Being that statutory damages under the TCPA are $500 per violation, if they have called even one time in violation then you could have enough to make them decide not to even continue pursuing that little $443.

 

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  • 2 months later...

I have a question on this one - if the Cap1 tradeline drops off as PRA is getting ready to sue - and you negotiate a settlement with PRA - and they delete the collection after you pay PRA - will the Cap1 automatically come back?

Or is there the possibility quick action with PRA can kill two tradelines with one stone (payment)? Will the Cap1 stay off?

 

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4 hours ago, Uncle Reggie said:

I have a question on this one - if the Cap1 tradeline drops off as PRA is getting ready to sue - and you negotiate a settlement with PRA - and they delete the collection after you pay PRA - will the Cap1 automatically come back?

Probably not.

4 hours ago, Uncle Reggie said:

Or is there the possibility quick action with PRA can kill two tradelines with one stone (payment)? Will the Cap1 stay off?

It should but any settlement with PRA would have had no affect on Cap1 if it were still reporting.  I would lay low and stay quiet and both should stay off.

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