I've been receiving annoying calls from a collection agency stating I owe my old school a certain amount. I stopped attending the school in 2003 and in 2005 I began getting notices from the collection agency. They have lowered my score for this month but i want to know if they can continue lowering it because as much as i feel like they have no right to have my money i'd rather pay and get everything over with. Help me!
2006-08-23 07:18:06 · 15 answers · asked by SoConfused 2 in Business & Finance ➔ Credit
I would like everyone to know that the school never sent me any letters stating I owed them money. If I did owe the school money I would have paid it off years ago because I am not irresponsible. I just find it so odd that years later after I stopped attending that school plus after the school closes down then a collecton agency wants to give me a call saying I owe them money when the school never contacted me.
2006-08-23 14:59:17 · update #1
No, once you have been reported by a credit collection agency you are delinquint. You definantly should pay it but since it has gone to collections, call and offer them a 50% settlement, and don't pay until they will take 50%. Then send a letter to all three Credit Bureaus demanding that tey remove it from your record as it has been paid. They will remove it and your credit will jump a few points over night. This is a great way to start repairing your credit. Email me if you want more credit repair tips, as this is my hobby to help people out. THere are all kinds of things you can do to get your score up.
2006-08-23 07:24:22 · answer #1 · answered by Alex H 3 · 1⤊ 0⤋
They can lower you score if the school reports a delinquent account. They can't continue to lower it if you refuse to pay up. They don't lower a score for just one month. They simply report it, and, once reported, then it will be reflected in you credit score for many years. Even paying it off will not necessarily raise your score. It simply releives the debt.
What they can also do is sue you for the amount owed and the expenses of that suit. If you lose that suit, they can then attatch your wages. No further permission from you is needed. It will just be taken out of your checks. This suit and collection will be another ding on your credit score.
What I can't get clear from the question is whether you just think that because you no longer attend the school, that you believe that relieves you of some kind of financial obligation. Or is it that the school is charging you for a something you never owed.
If you believe you never owed the money in the first place, you need to contact the school, not the collection agency, to clear up the matter. If the school agrees that you have been charged in error, THEY have to report it to the collection agency. Then the agency should report this error to the companies that track your credit score. If this is the case, you may have to nag the collection agency to report this.
Don't waste your time arguing with the agency. They can't UNreport the delinquent account. All you might be able to get out of the agency is, maybe, a payment schedule, where you pay off the debt a little at a time.
2006-08-23 08:02:37 · answer #2 · answered by Vince M 7 · 0⤊ 1⤋
Once it sold to a collection agency. They can offer a settlement. That what the collection agencies do. Try to get a much as possible. Some if you demand it will let you make lower payment to pay the debit in full. No they can not keep lowering your score. If you don't owe the debit. I would challenge and dispute it. If he/she calls again ask them to send prove of the debit and how much is owed and how to dispute it-if this is not your debit. Just for info. Once a debit is sold to a collection agency. The school has no more say because the schools already been paid by the collection agency minus fees
2006-08-23 10:45:52 · answer #3 · answered by webworm90 4 · 0⤊ 0⤋
Sure they can. You owe money!
If there is a problem - dispute it through the proper channels! You can't just not pay.
That is why there are credit reports! To allert institutions if someone has a problem paying bills! Even a library can put a mark on your credit if you just waltz off with a book and never return. Yes! A simple library book can lower your credit score by quite a bit!
If you come to a point where you just decide to pay it off - get it in writing that if they do this - they will take the blemish off of your record. Be absolutely adamant about this! If you fail to do this, it will be on your record from 7 years after you pay it. It will be marked as satisfied, but it will still be on your record will hurt your score.
2006-08-23 07:29:50 · answer #4 · answered by Think.for.your.self 7 · 0⤊ 1⤋
I work for a college in this area and I can tell you 2 things-they didn't place your account with an agency until YOU left them no choice. It costs the school money to have an agency pursue your debt, and people like you do make it more expensive for others to attend. As far as offering a settlement, our school policy is no settlement under any condition. The next step the school will likely take will be to sue you in court.
2006-08-23 07:28:34 · answer #5 · answered by melouofs 7 · 0⤊ 1⤋
Technically THEY can't lower your score. They report your non-payment to the credit bureau, and THEY are the ones who lower your score. If you owe the school, it's a legitimate claim. Make payment arrangements to get out of collections, and your credit score will go up.
2006-08-23 07:22:00 · answer #6 · answered by Ms.loanofficer 2 · 1⤊ 0⤋
The collection agency cannot lower your score at all. The major credit reporting agencies, Experian, Equifax, and Transunion, change your credit score. The reoprt from the collection agency has caused your score to drop.
so if i understand correctly, you have a major blemish on your credit report from ONE collection agency. your score should not continue to drop unless you have additional credit issues.
2006-08-23 07:23:28 · answer #7 · answered by Shamus 3 · 1⤊ 0⤋
They don't actually lower your score, they just report the delinquency to the credit reporting agencies, which then lower your score. As long as the bill is unpaid, that will continue to make your credit history worse. After you pay it off, it can stay on your credit report for ten years.
2006-08-23 07:26:04 · answer #8 · answered by Rose D 7 · 0⤊ 1⤋
The longer you go w/o paying the later they will report you (i.e. 30, 60, 90 days late, etc) The higher the days the more points you get taken away each time they report it. Your best bet is to work something out and pay them or dispute it with the school directly and try to get it taken care of either way. It will effect loans etc in the future.
2006-08-23 07:25:51 · answer #9 · answered by Workinmamma 4 · 0⤊ 1⤋
there is yet another element at play right here. you assert you're making use of a secured card and merchandise enjoying cards to construct credit. (by skill of "merchandise," do you mean retail credit enjoying cards?) however the question is HOW are you making use of those enjoying cards? ascertain you're paying off your balances each and each month and retaining your balances under 30% of your credit limits as a manner to construct your credit. this isn't any longer in basic terms making use of the enjoying cards, this is making use of them wisely. good success!
2016-10-02 11:05:03 · answer #10 · answered by goverdhan 3 · 0⤊ 0⤋