how to go about paying off an old debt thats gone to collections

[plated]

ok i rented an apt a couple yrs back and broke the lease,well it's showing up on my credit report it has gone to collections i tried to call today to work with the debt as far as paying it off all at once,the old bag on the phone says i'll have to pay it all off,is there a way to negotiate it to get it down,or pay a company to do it for me i threatend her with bankruptsy but got no where it's $2,700 i wouldn't mind even half but $2,700 is bullshit:rolleyes:

[Mista Bone]

either pay her in full, bankruptcy, or wait 5 years without paying a penny.

The longer a non collectible debt in on your report, the less it effects your score. I've started getting decent credit card offers again. Just got one from Discover today.

[Pitbull1052]

did you call the collection agency or the apt place?

[plated]

did you call the collection agency or the apt place?
the collection company the apt place uses it's abcc collections?

[Mista Bone]

Read at your own judgement.....

http://www.creditinfocenter.com/debt/settle_debts.shtml

IIRC in Ohio the statute of limitations is 5 years. Only one company, BP filed for a judgement against me, which I paid off without any interest penalties or fees.

[Walter]

Just tell em your name is Richard and that you dont know a Chris.

[Pitbull1052]

if you call back and ask for her supervisor I've never heard of one that wouldnt work with you on a debt that's over a few years old......

[plated]

i read somewhere they will accept 50 cent on the dollar and sometimes 70 it's hurting my credit and i want to get it off asap and fock bankrupsy has any one used a debt consolidater to do it? can they pull strings that i can't?

[cstreu1026]

Try and work it out yourself first. Using a debt consolidation service will go on your credit record as well and will impact your score.

[85_SS_302_Coupe]

I don't get where people say "wait this long and you won't have to pay it". I just had a phone bill pop up and go into collections from when i was 18 (12 years ago for those keeping score). I didn't get any kind of bill, nothing more than a letter from a law office saying judgement was won against me and i had to pay them this amount from way back in '98 when i had a phone at this address. It almost seemed fake but all the details added up.

So i called them, and i told them i'd like to bring them cash in person and pay the debt off and skip the whole check garnishment crap....they REFUSED my money. They said "why should we risk that when we already have judgement against you?". I about went off on this bitch and told her i've got the full amount in CASH and i can bring it to you right now. She said you can do that but the garnishment is still going through and we'll send you a check when we get the full amount. I couldn't believe it...i ended up telling her to eat shit and choke on it and they took it out through garnishments and i kept the cash. It was just over $1k.

So yeah...12 year old bill, i didn't get any letter that it was going into collections, no court summons to defend myself or try to pay it off...just a letter that i was getting garnished.

[Mista Bone]

Did you contest the validity of the debt with the agency?

Junk Debt Buyers don't even send the money back to the original company.

[JET50213]

i read somewhere they will accept 50 cent on the dollar and sometimes 70 it's hurting my credit and i want to get it off asap and fock bankrupsy has any one used a debt consolidater to do it? can they pull strings that i can't?

A lot of those debt consolidation companies are predators!! They will put you in worse shape.

[cstreu1026]

I don't get where people say "wait this long and you won't have to pay it". I just had a phone bill pop up and go into collections from when i was 18 (12 years ago for those keeping score). I didn't get any kind of bill, nothing more than a letter from a law office saying judgement was won against me and i had to pay them this amount from way back in '98 when i had a phone at this address. It almost seemed fake but all the details added up.

So i called them, and i told them i'd like to bring them cash in person and pay the debt off and skip the whole check garnishment crap....they REFUSED my money. They said "why should we risk that when we already have judgement against you?". I about went off on this bitch and told her i've got the full amount in CASH and i can bring it to you right now. She said you can do that but the garnishment is still going through and we'll send you a check when we get the full amount. I couldn't believe it...i ended up telling her to eat shit and choke on it and they took it out through garnishments and i kept the cash. It was just over $1k.

So yeah...12 year old bill, i didn't get any letter that it was going into collections, no court summons to defend myself or try to pay it off...just a letter that i was getting garnished.


Did you contest the validity of the debt with the agency?

Junk Debt Buyers don't even send the money back to the original company.
Bone is on to something there. A company probably bought a bundle of old debts (in this case from the phone company) for pennies on the dollar. I would guess that they paid less than 10% of the original amount so if they recover 25% of the original amount then they come out ahead. Usually the only way they recover any money is through threats and intimidation. Has this actually shown up on your credit report?

[85_SS_302_Coupe]

Yeah it was on my report...so i was ok with getting it paid off.

[03z06vette]

If you pay it off it will still be on your report.

[mustang8998]

I've had a debt collector (actually, probably~12) trying to get me to pay on a loan, that isn't mine. It doesn't show on my credit report. Every time I get one of these notices, I chuck it in the trash. I have even talked to a couple of them and told them to send me all the information. It gets sold and moved along. The most information any of them has given me, is the last payment was in 1993, LOL. I asked how the payment was made and they told me a check. So, who's name is on the check? Won't tell me.

[8banger]

Did you contest the validity of the debt with the agency?

Junk Debt Buyers don't even send the money back to the original company.



They buy debt owed for pennys on the dollar and if they collect half of the debt owed they've made there money back and a nice profit.

[glassman]

Bone is on to something there. A company probably bought a bundle of old debts (in this case from the phone company) for pennies on the dollar. I would guess that they paid less than 10% of the original amount so if they recover 25% of the original amount then they come out ahead. Usually the only way they recover any money is through threats and intimidation. Has this actually shown up on your credit report?

I have a uncle that did this w/ a group of guys mostly w companys & made a bit of $ @ it. That & check cashing places they are like the mob. He was talking about how that was a good $ maker once you are in the system you are hooked in people have no idea how much this service cost them they just take their check in and pay on the pay day loans & have no idea how much it is. The idea is good in one way & helps people when they need it but they make it to easy to run in & do this all the time then they can't break the cycle.

If the debt is new to the co then they will not deal as they are tryin to strong arm u. Sometimes you can call the original people you owe & make them a offer. or just tell them to sit on it for a while & offer to give them 25% How old is this?

[95redstang]

there is a time frame in which bad debt drops off. i think its either 7 or 10 years in ohio. once you tell these people you will pay the clock starts over. if you are past the time frame you can dispute it on your credit report. if you win the dispute it will be removed from your credit report. if they continue to bother you tell them you want all their info and send all the info they have to you so you can have your attorney go over it. this usually stops the calls. chris you can negotiate on your own. tell them you are going through a hard time and are talking to a lawyee about bankruptcy. they would rather have something than get nothing.

[Mista Bone]

The Ohio limit as I said above is 5 years IIRC. I keep getting "threats" for my Sears account that jumped the interest rates when I lost my job in 11/04 without ever being late a payment. Sears didn't wanna work with me, just bump the interest rates to 30% and higher. Loan sharking anyone? Sears sent me a letter writing off both debts about 6 months later.

Suzie Orman is were I learned about this on one of her call in shows.

I'm not proud of what the last almost 6 years have been like, but I went "belly up" 3-4 years before everyone else. I'm still here.

Yes, I could have filed bankruptcy before the new rules went into effect. Only thing is I was dead broke and stuck in Michigan with no money to get home. Thankfully Ryan came up to visit his then GF's mom and filled my tank +$10 to eat to get home.

I've been able to pay him back by loaning him one of my spare Honda's so he could drive from here to Army training in Twinsburg. I'm a firm believer in karma or "pay it forward"....

If you do wish to try to straighten things out, there are "FREE" credit counseling agencies that are not scams. If they run an ad on the radio, more than likely not a good company to deal with. Check with the BBB first.

[cobrajoe]

Check this site out. I have heard he knows what he's talking about.

https://www.afterbankruptcy.com/

also get your credit report and dispute any negative on the report true or not. Once you dispute, and make sure you pull all three, the agencies have 30 days to verify the debt or remove it from your report I beleive. Check the Fair Credit Reporting Act to make sure. It's a tedious process but I hear it works.

Good luck!

[Katmandu]

If you pay it off it will still be on your report.X2 !!!!! Been there, done that!

Don't pay it! You're only throwing your hard earned $$$ !!

It will show up as Paid as Agreed, but will still be a NEGATIVE SHOWING!!

Absolutely NO BENEFIT to your Credit Report !

[plated]

i did learn one thing from this never live withing 15 feet from a grave yard,they didn't tell us we were moving in behing a huge graveyard 15 feet from our window,the assholes showed us another apt and said ours was just like it minus the human fertalizer,and the mt.dew can sliding across the coffe table on it's own well....... really scared the fuck out of me

[skeptiq]

I would NOT recommend a debt counseling service. I made that mistake a long time ago and I am still being boinked for it.

I had alot of credit for an 18 year old and things going out of hand. I chose to go through one of those "programs" but here's what they don't tell you. You pay them "X" per month plus "Y" fee for "Z" timeframe and they make your payments for you to the creditors you give them. The real crappy part is every one of the payments I made for 5 years (and I did pay back every penny I borrowed) was marked late by the 5 or so credit card companies for the 5 years of the program. So even though I didn't miss a payment for 5 years repaying what I borrowed, my credit history shows 5 years of late payments. That stuff is finally starting to drop off my credit, so until the past few years (I am 32) I have been raped by interest rates on everything.

It was a learning experience and I will NOT get myself into that situation again, but when people ask about the those types of places, I ALWAY tell them my story and why it doesn’t work and can actually put you worse off than bankruptcy. Had I declared bankruptcy, I would have been back on my feet much more quickly and right now I would have perfect credit.

I had over $14k worth of debt though, I certainly wouldn't recommend filing for the amount you owe. My experience has also been that these collection agencies will eventually either work out a payment plan or take about 60% of the amount owed in a lump sum. Save your money for a few months and when they finally call to deal, hopefully you'll have the lump sum and can be done with it.

Good luck!
Ben