I had a Mastercard that has been in collections for 4 years. The collections agency is calling me everyday.?

Question

I came into hard times and lost my job a few years ago. Things have gotten better and I am in a better financial state so now I am trying to work on clearing up my credit. I recently pulled my credit report and I saw the Providian Mastercard still on there but it said the balance is $ 0, and the words "account closed by grantor". Then a few rows down I see a collections agency that bought my debt and the balance is now showing $8,500. 3 years ago, when I owed Providian, the balance was for $5,300 so I guess they are trying to tack on late fees, collection fees and whatnot. I heard that I should just wait and let it fall off my credit because if I try to pay it now, it will still look bad on my credit report because they will show the reporting date from the day I talked with them and try to keep it on there longer. Should I talk to the collections agency and try to negoicate with them and pay it off or should I just ignore the calls and let it fall off of my credit report in 3 years?

Answer 1

Before you decide to pay the collection agency, you need to find the statute of limitations (SOL) in your state.

If you are still within the SOL and you want to pay, send them a debt validation letter first. Make sure that what you are paying is the legal and correct amount.

You should also request a pay for delete.
In a pay for delete letter you would request to pay a percentage of the amount as payment in full.
That they will cease collections after payment.
That they will remove the account from your reports after payment.
That they will not sell the debt, or the remaining portion of the debt after payment.

You might go to the site I've listed. Do some reading in the newbie forum, so you can understand the terminology etc. Then do some reading in the credit forum.

You will be able to find your states SOL and also learn how to deal with collection agency's.

Everything on that site is free to read and use. Never pay a website for info that you can get for free.

Answer 2

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Answer 3

The collection agency cannot extend how long this bad mark on your credit will last. Just because you call them not does not mean that it stays on your report for 7 years after they assume the debt. It will only stay on your report for 7 years after the original debt was incurred. Period.

As far as the debt. It is a legitimate debt but adding on that much in interest and late fees is, I believe, excessive. I would try to negotiate a settlement and get out from under it.

Answer 4

Providian will sue you if you send them a cease a diseased order if you don’t pay. You should have got a collection letter. You could write the collection agency and tell them to stop calling you at home and work but add I will pay $10.00 a month or whatever you can afford to pay. Send them a US postal Money order with this letter. As long as you keep paying, they would not sue you. They will still bug you by mail demanding payment. Just keep sending the $10.00. Make it clear to them I can only afford to pay $10.00 and don’t miss a payment. Keep a copy of the letter for your records. If you can afford to pay more. Try a Credit Counseling Service. They can sometimes get the debit cut down.

Answer 5

If you want them to stop calling you will have to send them a letter telling them it is inconvenient to have them call and to only communicate through the mail. From what your saying, the trade line is reporting accurately. If you make any payments, it will start the clock over on the statue of limitations and they could possibly sue you. Unless you pay for deletion off you credit report, even a paid charge off is bad. A paid charge off and a non paid charge off affect you credit the exact same way. Dispute the trade line with the credit bureaus and seek validation from the creditor. They have to prove you owe the debt and the amount. It's up to you if you pay for it or not. Above all things stay off the phone and only communicate through mail.

Answer 6

Talk to a credit counselor. Your credit is bad already and if you ignore this debt, it will just grow. In another three years, your debt could easily double. It's probably better if you face up to it now. But like I said, talk to a professional for the best way to handle it.

Answer 7

let it fall. Don't pay a dime! You have bad credit already. You're taking no risk!

This debt has no attachment to hard assets, no collateral! Why would you pay it when you're trying to get back on your feet?

Answer 8

Let em call... After some much time.. depends where you are... They start calling before it's null and void and you don't have to pay anymore.. Statue of limitations.

Answer 9

Hello!
These people cannot harass you anymore if you stop them!
You can can send them a "cease communication" letter and they must stop legally.

Answer 10

TRY AND SEE IF YOU COULD WORK OUT A PAYMENT DEAL WITH THE C/C COMPANY WHICHEVER