What happens when an account goes to collection?

Question

What happens when an overdue account has not been paid and gone to collection? If I pay it in full, will it be removed from my credit report? Can I ask them to remove it?

Answer 1

If you pay it without FIRST requesting that they remove it upon payment, the chances are good that it will remain. Plus, it will show as a paid negative, which will be about as bad as an unpaid negative.

Never speak to them on the phone!! Have everything in writing and send it certified mail return receipt!!

Always send a debt validation letter before sending a pay for delete letter. Make sure that the debt has not been illegaly inflated, that the collection agency actually owns/has the debt etc.

After you receive their response and you are not past SOL for collection, or you want to pay, send them a pay for delete letter.

Request to pay a percentage of the debt (as payment in full) and also request:
That they will delete anything they have placed on your reports.
That they will not continue to try to collect the debt (whether you pay in full or pay a percentage)
That they will not sell the debt or the remainder of the debt.

If you pay first and ask later, you have lost any and all leverage that you have.

You should also check your states statute of limitations (SOL) to see if you are still even legally liable for the debt.

Always ask to pay a percentage of the debt when dealing with a collector. They purchase debts for less than what is owed. How much of a percentage depends on how old the charge off is.

You might go to the site I've listed and do some reading on debt validation and pay for delete (PFD).

Answer 2

Having worked at a bank and had an account go into collections this is what I've learned. The account will always remain on your credit report for at least 5 to 7 years. The best thing you can do is pay if off ASAP and begin reestablishing your credit rating. The easiest way is secured credit cards and jewelry store cards. Don't max them out and keep some activity on them because the bank can also close your account for non-use and that looks bad on your credit as well. You can request to have the account removed as a derogatory account from your credit report if you have some extenuating circumstances that caused you to go delinquent. A lot of the larger companies ususally will not cooperate but you may be able to work something out with a smaller company. Best of Luck.

Answer 3

Depending on the amount you owe, it would go to a collection agency or an attorney. Most collection agencies have one or more attornies either on staff or on retainer. Once it is on your credit report it generally cannot be removed. You can write a statement that can be a part of your credit report if you have a valid reason for not paying on time, such as illness or other hardship. Also, once it goes into collection, you generally have some leverage on paying a reduced amount. Most creditors figure they would rather receive a smaller amount than risk loosing everything.

Answer 4

You can pay it off in full. You can also ask the creditor to remove it, however in most cases they will put it down as a slow payment. But don't pay the collection agency a dime. That is the mistake most people make. Once you pay them a dime, it can never be removed from your credit rating. Pay it off at the credit office where you had the account. Try giving them a sob story. Sometimes that works......like a death in the family is why you were unable to pay it off.

Answer 5

Call the people you owe the money to, not the collection agency, and see if you can work out a payment plan with them or pay the debt in full. I don't know if it gets removed from your credit report on not.

Answer 6

working for a national credit restoration company i can tell you the best thing to do is nothing. do not pay! you will only make a debt collector richer. there are several federal laws in place that work in your favor to have things like this removed. such as the fair credit collection practices act. look it up!!! the best thing to do would be to call a credit restoration company like mine and pay them to fight to get the collection account removed for good.

Answer 7

I work in a doctors office. When an account is in collection, that patient will not be seen until he or she will pay the bill. However, if the patient will pay using installment they will be taken out from the collection service.

Answer 8

I still make payments on my collection account and when I pulled my credit the other day it hasn't even been taking off. If you figure that out, let me know. I think they charge hidden charges just for it being in collections and screw people.

Answer 9

the 1st element that happens is that that is stated to the credit bureaus. Then the series corporation would tack on a team fee on your stability. Then they are going to start to place in writing letters and contact relentlessly. they might additionally call your paintings (that is stopped in case you do it good). you will possibly be waiting to paintings something out with a team corporation. some would settle for month-to-month money. some would settle for a partial money settlement as fee in finished. continuously get any deal like that for the time of writing, although. and by no potential by no potential provide those human beings elctronic get right of entry to on your checking account. they are going to very oftentimes take out greater suitable than you agreed to. finally, they might turn your account over for felony action-you will nicely be sued, your wages garnished, etc.

Answer 10

yep the one dude was right you or at least your credit raring are screwed. good luck on this one ,once youve been turned over to collection,youre up the creek, do not blow them off, make some kind of arrangements to pay the balance you owe, collection agencies are hard core folks ,adept at levels of harassment you have never seen, plus they have the power to go to court on your debt and have your wage garnished until your debt is paid.