Help me out with my credit collector. (1 Viewer)

[Eminence]

Ok,

So I have a little unpaid money from my first run at College. I owe Olivet Nazerene University:

PRINCIPAL: $760.26

COLLECTION COSTS: $253.39

TOTAL: $1,013.65

I spoke to the collection agency and they said they are willing to cut me an 80% deal full-payment of $810.92. Is anyone familar with collection agency practices? Is there anyway I could swing a lower deal than this? At this current deal, the Collection Company is really only making about $50 off of this account.

Personally, for having this account open for nearly 3-4 years a $50 penalty seems like a slap on the wrist. The school hasn't fully accepted this offer but I have a feeling they wouldn't object to it.

Thoughts? Does anyone on here have the scoop on this type of thing?

 

[McGarnicle]

Depending on if/when it showed up on your credit report, it might make more sense to just ignore it. After 7 years it disappears.

 

[Eminence]

Depending on if/when it showed up on your credit report, it might make more sense to just ignore it. After 7 years it disappears.

Is this true? I have a credit score of 610 and this is allegedly the only ding on it. I just can't imagine not paying them back, will it really just "go away" by ignoring it?

EDIT: There are a few classes I'd like to snag from the transcript for my current degree.

 

[xulf]

They bought your debt for $0.50 or lower on the dollar. They are making more than $50.

 

[TxBuckeye]

Thoughts?

Quit being a deadbeat and pay your bill?

 

[McGarnicle]

Depending on if/when it showed up on your credit report, it might make more sense to just ignore it. After 7 years it disappears.

Is this true? I have a credit score of 610 and this is allegedly the only ding on it. I just can't imagine not paying them back, will it really just "go away" by ignoring it?

EDIT: There are a few classes I'd like to snag from the transcript for my current degree.

All they can do is sue you, which they won't do for that small amount. If it has already hit your credit report and it's been on there for 3-4 years already, I don't think it makes any sense to pay it at this point.

 

[geewill]

First off, pay your bills. Pay this one and be done with it.

Having said that, you can negotiate, if you are already talking to them (you shouldn't be).

They are keeping all the collection costs and a % of the principal, so they are getting paid. What's left goes to the university. It's unlikely they actually bought the debt (more likely it was assigned). If it was assigned, the university will have agreed in advance what % they will take. If 80% was the first offer, then you can do better.

If you want to press your luck, a lot of questions need to be answered:

What agency is it?

Have you talked to them on the phone? You should never talk to them. Do it in writing.

Have you checked your credit report and does this debt actually show up?

In what state is the university located?

When was the debt incurred?

Did your contract with the university state you would be liable for collection costs and/or interest?

Where do you live now?

When was the last time you paid on this debt?

When did the agency first contact you?

Did the agency notify you in writing with their first contact?

Did you request verification of debt?

You have 30 days from their notification to dispute in writing.

If you dispute, they are required verify the debt with documentation from the creditor.

If they cannot verify it, they will stop (won't help help with your credit report if it's on there).

If you don't want them calling you, send a request in writing and they must stop.

and the list goes on...

 

[Johnny Rock]

Ok,

So I have a little unpaid money from my first run at College. I owe Olivet Nazerene University:

PRINCIPAL: $760.26

COLLECTION COSTS: $253.39

TOTAL: $1,013.65

I spoke to the collection agency and they said they are willing to cut me an 80% deal full-payment of $810.92. Is anyone familar with collection agency practices? Is there anyway I could swing a lower deal than this? At this current deal, the Collection Company is really only making about $50 off of this account.

Personally, for having this account open for nearly 3-4 years a $50 penalty seems like a slap on the wrist. The school hasn't fully accepted this offer but I have a feeling they wouldn't object to it.

Thoughts? Does anyone on here have the scoop on this type of thing?

Tell them, "Times are really tough but I have $250 saved up toward new tires. That's all I have. Would you take that and call it good?"Don't send the money until they give you a signed document that says you owe nothing more and that the agreed payment is considered payment in full.

I'm not a lawyer but who cares, right?

 

[Eminence]

Depending on if/when it showed up on your credit report, it might make more sense to just ignore it. After 7 years it disappears.

Is this true? I have a credit score of 610 and this is allegedly the only ding on it. I just can't imagine not paying them back, will it really just "go away" by ignoring it?

EDIT: There are a few classes I'd like to snag from the transcript for my current degree.

All they can do is sue you, which they won't do for that small amount. If it has already hit your credit report and it's been on there for 3-4 years already, I don't think it makes any sense to pay it at this point.

Guy I spoke to for a house loan said this was the only thing dinging my credit score, atm. Plus, they have my transcripts locked up and I think I can weasel myself out of at least 10 credit hours (I've got about 50 remaining). $250 per credit hour. I've got a few Business Classes from there I should be able to bypass once I go for my Bachelors in Business Administration again.

 

[mr roboto]

You are trying to get a home loan?

 

[[icon]]

 

[BroadwayG]

Do they accept swedish fish as currency?

 

[Buffaloes]

Ok,

So I have a little unpaid money from my first run at College. I owe Olivet Nazerene University:

PRINCIPAL: $760.26

COLLECTION COSTS: $253.39

TOTAL: $1,013.65

I spoke to the collection agency and they said they are willing to cut me an 80% deal full-payment of $810.92. Is anyone familar with collection agency practices? Is there anyway I could swing a lower deal than this? At this current deal, the Collection Company is really only making about $50 off of this account.

depending on the contract, they probably work on a contingency basis and the collection company earns a % of the collections. either that or they purchased it for much lower than what's owed so they probably stand to make more than $50 on an 80% settlement.

anyway, you can probably negotiate a lower deal. 80% is high. whatever you do, make sure you have a written agreement clearly stating the terms of the settlement or agreement or whatever. then make good on your end. it's better to pay it imo.

 

[shadyridr]

Tell them youll pay them in fake stock earnings

 

[McGarnicle]

Collection agencies are the scum of the earth. You shouldn't give them a nickel. When they call, just make fart noises or repeat everything they say until they hang up. If they send you a bill, wipe your ### with it and mail it back. Why? Because #### them, that's why.

 

[Johnny Rock]

Or agree on an amount and send them double the amount in coupons.

 

[Buffaloes]

send them double the amount in coupons.

 

[seahawk 17]

Collection agencies are the scum of the earth. You shouldn't give them a nickel. When they call, just make fart noises or repeat everything they say until they hang up. If they send you a bill, wipe your ### with it and mail it back. Why? Because #### them, that's why.

I agree with this if it's a medical bill.

One time I had a 7,000 ER visit. This is after I paid 400.00 a month insurance premium and a 100.00 ER co-pay.

GFY collection agency.

 

[Premier]

When they call, repeat everything they say until they hang up.

oh man I would love for somebody to do this.

 

[jon_mx]

Thoughts?

Quit being a deadbeat and pay your bill?

It is $800. This is a guy who gets excited when he makes $2.50 on his stock portfolio.

 

[Eminence]

Ok,

So I have a little unpaid money from my first run at College. I owe Olivet Nazerene University:

PRINCIPAL: $760.26

COLLECTION COSTS: $253.39

TOTAL: $1,013.65

I spoke to the collection agency and they said they are willing to cut me an 80% deal full-payment of $810.92. Is anyone familar with collection agency practices? Is there anyway I could swing a lower deal than this? At this current deal, the Collection Company is really only making about $50 off of this account.

depending on the contract, they probably work on a contingency basis and the collection company earns a % of the collections. either that or they purchased it for much lower than what's owed so they probably stand to make more than $50 on an 80% settlement.

anyway, you can probably negotiate a lower deal. 80% is high. whatever you do, make sure you have a written agreement clearly stating the terms of the settlement or agreement or whatever. then make good on your end. it's better to pay it imo.

What should I shoot for? 70%?

 

[Sarnoff]

I owe Olivet Nazerene University:

This sounds like a feeder school for Hamline. Did they take credit cards? Which mall was it located in?

Isn't this the college that doesn't teach evolution, they're Creationism-Only?

In four years didn't they at least teach you how to spell their name correctly?

 

[None_More_Black]

Paying probably won't help your score and will in fact keep a black mark on your credit for 7 years after you pay. If you need the credits/transcript start by offering 30%. (although depending on your state, the debt is likely withing the statute of limitations for suit so they may not go that low. Check your state's statute of limitations. You may want to wait to do anything before the debt is out of statute) If you can up with the full amount they may do a pay for delete but that is becoming less common. Also it is best not to talk too much on the phone and never admit the debt is yours, just that you saw it on your credit report.

 

[Buffaloes]

Paying probably won't help your score and will in fact keep a black mark on your credit for 7 years after you pay. If you need the credits/transcript start by offering 30%. If you can up with the full amount they may do a pay for delete but that is becoming less common. Also it is best not to talk too much on the phone and never admit the debt is yours, just that you saw it on your credit report.

if you pay it in full or settle it there is no black market. it's done. but if you settle it, it will probably be indicated on your credit report. you can try to offer a 30% settlement, but you'll probably end up higher than that unless you have a decent hardship or it's an old debt nearing statute of limitations. i'm pretty sure if you make a payment toward the debt with no intention of payoff or settling it, then the statute of limitations clock restarts with that payment so you probably want to either pay it off or settle it and be done w/ it. if you payoff, I would recommend attempting to have it deleted from the report altogether. either way, get it in writing and make sure the details are correct prior to making the payment.

 

[Maurile Tremblay]

Check your state's statute of limitations.

Do this before you do anything else. If the limitations period has expired, you do not legally owe the money. If you feel bad about stiffing the school, you can make a charitable donation to it, but don't make a payment on the debt (as that restarts the statute of limitations).

If the limitations period has not run, you should be able to settle for no more than 50% of the principle (while completely ignoring the collection costs). But as others have mentioned, don't pay a penny unless you have an agreement in place that your payment completely extinguishes the debt. (Also, be prepared to receive a 1099 for the discount you receive.)

 

[sporthenry]

Deadbeats like you are the reason the rest of us have to pay higher interest rates. The banks/universities/etc. don't lose money, just charge the rest of us more.

 

[Maelstrom]

Depending on if/when it showed up on your credit report, it might make more sense to just ignore it. After 7 years it disappears.

Is this true? I have a credit score of 610 and this is allegedly the only ding on it. I just can't imagine not paying them back, will it really just "go away" by ignoring it?

EDIT: There are a few classes I'd like to snag from the transcript for my current degree.

All they can do is sue you, which they won't do for that small amount. If it has already hit your credit report and it's been on there for 3-4 years already, I don't think it makes any sense to pay it at this point.

Companies can and do sue for small amounts list this. They just send a list of affidavits to the civil court in your jurisdiction and most people then ignore it and the company gets a judgement, they have much higher leverage of the person. A lot of times it is a debt buyer, not the original company, that brings the lawsuit.

Paying probably won't help your score and will in fact keep a black mark on your credit for 7 years after you pay. If you need the credits/transcript start by offering 30%. If you can up with the full amount they may do a pay for delete but that is becoming less common. Also it is best not to talk too much on the phone and never admit the debt is yours, just that you saw it on your credit report.

if you pay it in full or settle it there is no black market. it's done. but if you settle it, it will probably be indicated on your credit report. you can try to offer a 30% settlement, but you'll probably end up higher than that unless you have a decent hardship or it's an old debt nearing statute of limitations. i'm pretty sure if you make a payment toward the debt with no intention of payoff or settling it, then the statute of limitations clock restarts with that payment so you probably want to either pay it off or settle it and be done w/ it. if you payoff, I would recommend attempting to have it deleted from the report altogether. either way, get it in writing and make sure the details are correct prior to making the payment.

Paying it will re-age the account, and so it is possible it could hurt temporarily. But it would be better than an open collection acct.

---

I'd start at about 30-40% at most with your settlement offer. This is the part where you lie (sorry, but you should). Tell them your parents gave you $300 gift, or you got a small tax refund, doesn't matter. They do not need to know, at all, how much money you have. They'll ask, they'll try to get all kinds of info from you. All you should tell them is name, address, maybe phone, if they already have it (i.e. offer to confirm rather than telling them what it is.) Always be in a hurry to get off the phone if you can, and don't let them make you mad or scared, that is their MO, cause people make bad decisions when they are emotional, like paying debt collectors instead of their mortgage.

Then ask them to send you a letter of settlement stating the terms (email or fax is fine), as a condition of the deal, and you will send a cashier's check overnight if that is what is required. But don't give them any thing like a personal check (tell them you don't have a checking account or no checks right now) or access to your account electronically.

Also, once done, you want to get a letter stating your debt has been paid in full. That should be part of the deal. Then file and keep all of your correspondence in a file for at least the next 7 years, in case the debt gets sold as part of some deal, you can prove it is paid off.

 

[Juxtatarot]

Check your state's statute of limitations.

Do this before you do anything else. If the limitations period has expired, you do not legally owe the money. If you feel bad about stiffing the school, you can make a charitable donation to it, but don't make a payment on the debt (as that restarts the statute of limitations).

If the limitations period has not run, you should be able to settle for no more than 50% of the principle (while completely ignoring the collection costs). But as others have mentioned, don't pay a penny unless you have an agreement in place that your payment completely extinguishes the debt. (Also, be prepared to receive a 1099 for the discount you receive.)

Under $600 remaining and he won't have to worry about the 1099-C.

 

[Eminence]

Wow, I'm very glad that I came here to talk to you guys about this. From what I've read so far, I think I'm going to call them back tomorrow and:

1.) Offer them 30% of the amount owed.

2.) Tell them I need a written note stating my "debt has been relieved".

I really didn't know you could ring up extravagant bills and just walk away from them like that...

 

[None_More_Black]

Paying probably won't help your score and will in fact keep a black mark on your credit for 7 years after you pay. If you need the credits/transcript start by offering 30%. If you can up with the full amount they may do a pay for delete but that is becoming less common. Also it is best not to talk too much on the phone and never admit the debt is yours, just that you saw it on your credit report.

if you pay it in full or settle it there is no black market. it's done. but if you settle it, it will probably be indicated on your credit report. you can try to offer a 30% settlement, but you'll probably end up higher than that unless you have a decent hardship or it's an old debt nearing statute of limitations. i'm pretty sure if you make a payment toward the debt with no intention of payoff or settling it, then the statute of limitations clock restarts with that payment so you probably want to either pay it off or settle it and be done w/ it. if you payoff, I would recommend attempting to have it deleted from the report altogether. either way, get it in writing and make sure the details are correct prior to making the payment.

A paid collection is still a black mark. Just like a 90 day late is a black mark even though you eventually paid.

 

[Eminence]

I live in Illinois, would this be a written contract or open-ended account? This is key for the statute of limitations for my state. I want to reach some type of agreement because like I said before, there are a few credits I'd like to snatch for this current degree and my future degree in Business Administration (what I was originally going for).

http://www.creditinfocenter.com/rebuild/statuteLimitations.shtml

 

[fantasycurse42]

2.) Tell them I need a written note stating my "debt has been relieved".

Tell them you want this first, then you'll pay... Tell them that's the only way, please record the call.

 

[Arid Filch]

I will chime in as I am in a similar situation at the moment.

Three years ago I was scooped up off the street in a semi-dazed, bloody condition by ambulatory men. They packed me into the back of a van and shot me up with drugs until I passed out. Shortly after, I was deposited into a cheap, no insurance hospital. When I finally came to, my neck was in a brace and they had a 8K bill waiting. Obviously, I told them to shove it up their ###. In the days following I offered 1K but they would budge no lower than 5.5K. So I said #### it. I eventually moved from my apartment and had no further contact over the bill until a collection agency started calling in the summer. They were also demanding not a dollar less than 5.5K. I researched the law, saw that Texas courts do not garnish wages for medical bills. So I had some fun with the collection agent. Every payday I swore I would make a payment as soon as I figured out how much money I had left after the bar. He gradually stopped calling. Sometimes when I was bored at work, I would even call him. I guess you could say we became friend. He admitted that they would never go to court over 8K, too petty of a sum. We eventually lost touch and I forgot about the bill. A few months ago I received a call from a new agency. They wanted me to pay $100 I owed. I asked what it was for, and all the information he had matched that visit, but he couldn't say what treatment I received. We agreed that I should call the hospital to verify. Haven't heard from him since.

Long story short, I'm in the process of getting a home loan and my score is 740. Pre-approved, no mention of my debt. Medical bills in Texas may be different.

 

[Juxtatarot]

Since you mentioned credit scores, be aware that paying a collection won't really help your score. It still will show. Sometimes you can arrange for them to delete the collection upon payment and that will certainly raise the score. That can be hard to get them to do and just because they tell you they will doesn't mean they'll actually follow through.

 

[Eminence]

Paying probably won't help your score and will in fact keep a black mark on your credit for 7 years after you pay. If you need the credits/transcript start by offering 30%. If you can up with the full amount they may do a pay for delete but that is becoming less common. Also it is best not to talk too much on the phone and never admit the debt is yours, just that you saw it on your credit report.

if you pay it in full or settle it there is no black market. it's done. but if you settle it, it will probably be indicated on your credit report. you can try to offer a 30% settlement, but you'll probably end up higher than that unless you have a decent hardship or it's an old debt nearing statute of limitations. i'm pretty sure if you make a payment toward the debt with no intention of payoff or settling it, then the statute of limitations clock restarts with that payment so you probably want to either pay it off or settle it and be done w/ it. if you payoff, I would recommend attempting to have it deleted from the report altogether. either way, get it in writing and make sure the details are correct prior to making the payment.

A paid collection is still a black mark. Just like a 90 day late is a black mark even though you eventually paid.

Ok, well which is it? I would like the credits / transcripts at some point and would like to remove this blemish from my record at all costs. As stated before, when applying for a home loan this appeared on my report. The man from Quicken Loans said that I would be able to help my credit score by getting it paid off.

He literally told me to offer them, "$200" but I thought he was speaking in-jest. I didn't have any clue that $200 might be a valid alleviation of my debt in a situation like this. Among anything else though, my desired result is to remove this from my credit history. Would settling at 30% or even 80% hurt my credit / leave a blackmark on my account?

Would paying the amount in full successfully remove this from my credit report? I have a score of 610, any theories as to how much this particular debt may be holding my score down?

 

[None_More_Black]

Wow, I'm very glad that I came here to talk to you guys about this. From what I've read so far, I think I'm going to call them back tomorrow and:

1.) Offer them 30% of the amount owed.

2.) Tell them I need a written note stating my "debt has been relieved".

I really didn't know you could ring up extravagant bills and just walk away from them like that...

In your case make sure that you can get your transcripts if you settle.

 

[jon_mx]

1. There are no statue of limitations on student loans if they are federally funded. They even survive bankruptcy. They are the worst form of debt you can have outside of IRS liens.

 

[None_More_Black]

Paying probably won't help your score and will in fact keep a black mark on your credit for 7 years after you pay. If you need the credits/transcript start by offering 30%. If you can up with the full amount they may do a pay for delete but that is becoming less common. Also it is best not to talk too much on the phone and never admit the debt is yours, just that you saw it on your credit report.

if you pay it in full or settle it there is no black market. it's done. but if you settle it, it will probably be indicated on your credit report. you can try to offer a 30% settlement, but you'll probably end up higher than that unless you have a decent hardship or it's an old debt nearing statute of limitations. i'm pretty sure if you make a payment toward the debt with no intention of payoff or settling it, then the statute of limitations clock restarts with that payment so you probably want to either pay it off or settle it and be done w/ it. if you payoff, I would recommend attempting to have it deleted from the report altogether. either way, get it in writing and make sure the details are correct prior to making the payment.

A paid collection is still a black mark. Just like a 90 day late is a black mark even though you eventually paid.

Ok, well which is it? I would like the credits / transcripts at some point and would like to remove this blemish from my record at all costs. As stated before, when applying for a home loan this appeared on my report. The man from Quicken Loans said that I would be able to help my credit score by getting it paid off.

He literally told me to offer them, "$200" but I thought he was speaking in-jest. I didn't have any clue that $200 might be a valid alleviation of my debt in a situation like this. Among anything else though, my desired result is to remove this from my credit history. Would settling at 30% or even 80% hurt my credit / leave a blackmark on my account?

Would paying the amount in full successfully remove this from my credit report? I have a score of 610, any theories as to how much this particular debt may be holding my score down?

you won't get a mortgage with a 610 but you have to pay open collection before you get a mortgage even if it won't help your score as a general rule.

 

[Eminence]

It's just a dumb psychology class (4 credit hours) and a few business applications (excel, powerpoint, access, etc: 6 credit hours) that I'm even concerned with. Baker Online charges $250 per credit hour, so it would cost a whopping $2,500 to retake these classes.

So I'm definitely not going to walk away from the debt I owe, purely on that principle. But there's no way to remove this blemish from my account?

 

[jon_mx]

Paying probably won't help your score and will in fact keep a black mark on your credit for 7 years after you pay. If you need the credits/transcript start by offering 30%. If you can up with the full amount they may do a pay for delete but that is becoming less common. Also it is best not to talk too much on the phone and never admit the debt is yours, just that you saw it on your credit report.

if you pay it in full or settle it there is no black market. it's done. but if you settle it, it will probably be indicated on your credit report. you can try to offer a 30% settlement, but you'll probably end up higher than that unless you have a decent hardship or it's an old debt nearing statute of limitations. i'm pretty sure if you make a payment toward the debt with no intention of payoff or settling it, then the statute of limitations clock restarts with that payment so you probably want to either pay it off or settle it and be done w/ it. if you payoff, I would recommend attempting to have it deleted from the report altogether. either way, get it in writing and make sure the details are correct prior to making the payment.

A paid collection is still a black mark. Just like a 90 day late is a black mark even though you eventually paid.

Ok, well which is it? I would like the credits / transcripts at some point and would like to remove this blemish from my record at all costs. As stated before, when applying for a home loan this appeared on my report. The man from Quicken Loans said that I would be able to help my credit score by getting it paid off.

He literally told me to offer them, "$200" but I thought he was speaking in-jest. I didn't have any clue that $200 might be a valid alleviation of my debt in a situation like this. Among anything else though, my desired result is to remove this from my credit history. Would settling at 30% or even 80% hurt my credit / leave a blackmark on my account?

Would paying the amount in full successfully remove this from my credit report? I have a score of 610, any theories as to how much this particular debt may be holding my score down?

you won't get a mortgage with a 610 but you have to pay open collection before you get a mortgage even if it won't help your score as a general rule.

All the more reason not to pay. The last thing Emmy needs at this stage in his life is to buy a house.

 

[Eminence]

Paying probably won't help your score and will in fact keep a black mark on your credit for 7 years after you pay. If you need the credits/transcript start by offering 30%. If you can up with the full amount they may do a pay for delete but that is becoming less common. Also it is best not to talk too much on the phone and never admit the debt is yours, just that you saw it on your credit report.

if you pay it in full or settle it there is no black market. it's done. but if you settle it, it will probably be indicated on your credit report. you can try to offer a 30% settlement, but you'll probably end up higher than that unless you have a decent hardship or it's an old debt nearing statute of limitations. i'm pretty sure if you make a payment toward the debt with no intention of payoff or settling it, then the statute of limitations clock restarts with that payment so you probably want to either pay it off or settle it and be done w/ it. if you payoff, I would recommend attempting to have it deleted from the report altogether. either way, get it in writing and make sure the details are correct prior to making the payment.

A paid collection is still a black mark. Just like a 90 day late is a black mark even though you eventually paid.

Ok, well which is it? I would like the credits / transcripts at some point and would like to remove this blemish from my record at all costs. As stated before, when applying for a home loan this appeared on my report. The man from Quicken Loans said that I would be able to help my credit score by getting it paid off.

He literally told me to offer them, "$200" but I thought he was speaking in-jest. I didn't have any clue that $200 might be a valid alleviation of my debt in a situation like this. Among anything else though, my desired result is to remove this from my credit history. Would settling at 30% or even 80% hurt my credit / leave a blackmark on my account?

Would paying the amount in full successfully remove this from my credit report? I have a score of 610, any theories as to how much this particular debt may be holding my score down?

you won't get a mortgage with a 610 but you have to pay open collection before you get a mortgage even if it won't help your score as a general rule.

The dude at Quicken loans says I'd need a minimum of 620 to get a mortgage. He told me that taking care of this debt would probably be the smartest move to make. This coincides with the Associates Degree I'll hopefully be receiving this November.

I figure this would be a two birds, one stone type of thing.

Edit: Where's Abraham?

 

[Eminence]

EDIT:

Also, the debt collection agency stated that they needed to have approval from the school for whatever agreement we came to. Is that true? Or were they just blowing smoke up my ###?

 

[jon_mx]

EDIT:

Also, the debt collection agency stated that they needed to have approval from the school for whatever agreement we came to. Is that true? Or were they just blowing smoke up my ###?

It could be true or they could be blowing smoke. Really depends on the agreement or if the loan was really sold. Odds are any words out of the mouths of these type of agencies are BS, but it could be true.

 

[None_More_Black]

Paying probably won't help your score and will in fact keep a black mark on your credit for 7 years after you pay. If you need the credits/transcript start by offering 30%. If you can up with the full amount they may do a pay for delete but that is becoming less common. Also it is best not to talk too much on the phone and never admit the debt is yours, just that you saw it on your credit report.

if you pay it in full or settle it there is no black market. it's done. but if you settle it, it will probably be indicated on your credit report. you can try to offer a 30% settlement, but you'll probably end up higher than that unless you have a decent hardship or it's an old debt nearing statute of limitations. i'm pretty sure if you make a payment toward the debt with no intention of payoff or settling it, then the statute of limitations clock restarts with that payment so you probably want to either pay it off or settle it and be done w/ it. if you payoff, I would recommend attempting to have it deleted from the report altogether. either way, get it in writing and make sure the details are correct prior to making the payment.

A paid collection is still a black mark. Just like a 90 day late is a black mark even though you eventually paid.

Ok, well which is it? I would like the credits / transcripts at some point and would like to remove this blemish from my record at all costs. As stated before, when applying for a home loan this appeared on my report. The man from Quicken Loans said that I would be able to help my credit score by getting it paid off.

He literally told me to offer them, "$200" but I thought he was speaking in-jest. I didn't have any clue that $200 might be a valid alleviation of my debt in a situation like this. Among anything else though, my desired result is to remove this from my credit history. Would settling at 30% or even 80% hurt my credit / leave a blackmark on my account?

Would paying the amount in full successfully remove this from my credit report? I have a score of 610, any theories as to how much this particular debt may be holding my score down?

What I would do is settle if you really plan on applying for a mortgage in the near future and need the credits but you probably won't get a sweetheart deal because they know they have something you need. Never, ever mention you are applying for a mortgage if you attempt to settle a debt. Since the debt, if it is not a perkins loan, still has at least six years of statute left in IL, consider yourself lucky if can settle for 50%. Don't expect your score to go up however, and you will have a paid collection on your report for seven more years but there are worse things.

 

[None_More_Black]

EDIT:

Also, the debt collection agency stated that they needed to have approval from the school for whatever agreement we came to. Is that true? Or were they just blowing smoke up my ###?

Probably true because the collection agency for the school probably did not buy the debt, they are just collecting on the account. This makes it even more likely that you won't get an amazing deal but you can still try.

 

[None_More_Black]

After doing a little research if you pay the collection, it should still only stay on your report for 7 years from the first deliquency. I have heard two sides to this in the past. So 3 or 4 more years in your case.

 

[cstu]

They bought your debt for $0.50 or lower on the dollar. They are making more than $50.

 

[Maelstrom]

It's just a dumb psychology class (4 credit hours) and a few business applications (excel, powerpoint, access, etc: 6 credit hours) that I'm even concerned with. Baker Online charges $250 per credit hour, so it would cost a whopping $2,500 to retake these classes.

So I'm definitely not going to walk away from the debt I owe, purely on that principle. But there's no way to remove this blemish from my account?

No, no real way to remove it. Collection agencies used to do "pay for delete" where if you paid in full they would completely remove the record, but that is pretty rare these days. But a paid in full or paid as agreed, or even paid, settled is better than an open account. And it will age pretty quickly, after about 2 years once it is paid it shouldn't affect your score much. You probably won't jump up into the mid-high 700s while it is listed, but it'll drop off completely in 7 years.

 

[ClownCausedChaos2]

Lots of good advice in here, but the ome thing I noticed os that no one seems to know what will happen with 100% certainty if you settle or cut corners.

If you truly want a house, suck it up and pay your debt.

 

[KingPrawn]

New to this thread so sorry if this has been covered. But why aren't you paying your bill? Too many stock losses?