I received a letter from a collections agency a few days ago. The agency is trying to collect on an a ten-year old phone bill that is now in the hundreds of dollars.
The delinquent account has not shown up on my credit report and I have a very good credit rating. Some credit applications I submitted in the past have been denied citing "too many delinquent accounts."
I never knew about the old phone bill or I would have paid it off. Now I am stuck with the decision to pay the bill collector or forget about. What are the pros and cons of tossing the collections letter in the trash?
2006-12-28 09:51:35 · 13 answers · asked by listo330 1 in Business & Finance ➔ Credit
Do not pay it. The statue of limitations ran out a long time ago on this. If you do pay it you only make your credit situation worse. What you are dealing with is known as a zombie collecter. These companies go out and look for your old old bills and threaten you to pay it. The debt is legally gone and they can do nothing about it. If you pay this or amke arrangements you add a deliquent and expired account to your report.
I repeat do not pay this bill.
Read the link I have enclosed it is an eye opener. You do have rights in this and you need to know them.
http://articles.moneycentral.msn.com/SavingandDebt/ManageDebt/ZombieDebtCollectorsDigUpYourOldMistakes.aspx
2006-12-28 11:41:20 · answer #1 · answered by logan 5 · 3⤊ 0⤋
Some lenders (mostly mortgage lenders) will not lend to you with an outstanding collection. This also has a negative impact on your credit score - as you have seen. If this is the only "ding" on an otherwise clean credt report, then it is probably not that big a deal and it will eventually disappear. After this much time the debt has likely been sold at a fraction of the original value. You should be able to settle it for a lesser amount than the several hundred you say it has grown to. You may be able to get away with ignoring it, but lets be honest - if you owe them money, then you should pay them. Tell them you will settle for the original amount owed and feel good about being a person of integrity.
2006-12-28 18:02:53 · answer #2 · answered by sdmike 5 · 0⤊ 1⤋
The moral thing to do would be to pay the debt, however, keep in mind that by paying the debt you are renewing the time frame that it can stay on your credit report. Chances are, by now, it has dropped off. If you pay the debt, the creditor most likely will report the account as paid, but it will also report the delinquent status. It's up to you, but if you do agree to pay it, make sure they agree to list the item as paid as agreed rather than as a paid collections account. And remember, get everything in writing in triplicate.
2006-12-30 20:01:23 · answer #3 · answered by kefowler7 2 · 0⤊ 0⤋
Don't pay it....the statue of limitations has expired and it should have fallen off your credit report after 7 years.
Most likely your collection account was "sold" to a collection agency who is looking to collect on an old account. If you pay it off it's pure profit for them because of the SOL, it won't effect your credit either way.
I wouldn't take any calls from them and eventually they will go away.
2006-12-28 17:56:42 · answer #4 · answered by Jen G 3 · 0⤊ 0⤋
I like the last answer. And he's right , they will hound you forever. Someone got access to my credit card and ran up a big bill - I had moved to Mexico and only learned about when an overseas debt collecting agency started constant(I mean two or three times a week) demand payments. So my credit was ruined until I settled. It's unjust but settling is the best course. You have to think about the time and energy you are giving this as well; Lessening that is worth something.
2006-12-28 18:02:02 · answer #5 · answered by Mukunda M 7 · 0⤊ 2⤋
go to www.annualcreditreport.com and pull all 3 credit reports and see if they are on there. If they are dispute them. If they come off dont worry about it, if they verify the account then negotiate the balance. If you have not made a payment in the last 4 yrs they cant collect on it any way due to your state statutes of limitations on debt.
2006-12-28 18:00:07 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Don't trash the letter, send them a letter disputing the validity of the debt due to the age. Collection agencies buy these debts for almost nothing and harrass you to get as much as they can. As long as there is not a judgement by a court for you to pay, don't pay it.
2006-12-28 17:57:10 · answer #7 · answered by Krista13 3 · 1⤊ 0⤋
I would contact the company who's number should be on your credit report and see if you can settle the debt interest and penalty free. If not pay them what you can as this debt is not going to go away. Most companies have a system that will post things to your credit and when the period for it to drop off your credit matures, there computers will reinstate it and it can post depending on what it is for ten more years. In other words, it will always follow you.
If you can not contact the company, write notify your credit bureau to have the debt written off.
If all else fails pay them $1.00 a month as that will not show up as a none payment anymore.
2006-12-28 18:01:35 · answer #8 · answered by BionicNahlege 5 · 0⤊ 2⤋
I would have fun with that one... They are extorting money.. The best thing to do is NOT to get rattled... and tell them: "no problem, I will see you in court" and let it go at that.. They could never collect... statute of limitations LONG past
2006-12-28 17:55:41 · answer #9 · answered by Benjamin J 1 · 0⤊ 0⤋
its over 7 years dont send them anything dont take any phone calls from them dont even talk to them or dont agree to pay them some money at all because if u agree to send them some money statue of limitations start all over again
2006-12-29 11:42:18 · answer #10 · answered by matt12882003 3 · 0⤊ 0⤋