If a bill collector sends you a settlement amount and you pay it, is it really paid in full? They won't try

Question

to contact you anymore and it won't go against your credit in the future?

Answer 1

A paid negative is still a negative.

If you pay it without demanding deletion, it will be updated on your reports as paid/settled. Being updated will make it look newer than it actually is - and that does significantly hurt your credit. (collection agencies make deals to delete every day)

Updating is not re-aging.
It is illegal to re-age a debt on your reports, if you pay it, without demanding deletion, it should continue to run for the original amount of time.

Unless you demand that they treat a settlement as payment in full, that they will not continue to collect, sell or trade the remainder, return the remainder to the original creditor - you may find that the same collection agency, a different collection agency or the original creditor suddenly start trying to collect on the remaining amount.

You may also have to pay taxes on the amount the remaining amount.

Before you accept an offer to pay, either the full amount or a portion of the amount, you should send a debt validation letter. Make sure the amount they are claiming is the legal amount owed and that they have a legal right to collect the debt.

You should also check the collecting SOL in your state. If you are out of the legal collecting SOL, you are not legally bound to pay the debt. If you are out of SOL you have a legal right to notify the collector that the debt is time barred for collecting (basically legally telling them to take a hike)

You might click on my profile and do some reading in the links I have listed - to the FDCPA, FCRA, etc.

Learn your rights and learn how to use them.

Answer 2

It will be paid in full. However paying a collection could be worse then leaving it alone. Depending on what your paid status would be. Best listing would be paid as agreed or account closed-paid as agreed, 2nd would be Paid, 3rd would be settled, and last option the worst would say paid charge-off. Only agree to the 2nd and 3rd if they remove the negative comeents such as repossession, late notations, charge-off and collections. You can negotiate with the creditor for full removal off your credit after settlement payment an have the original creditor change the rating to paid as agreed. Make sure you get it in writing.
If you just pay it, doesnt mean that it will go away.
Good Luck

Answer 3

If they offer you a settlement, and you take it, then you will not be contacted anymore about this debt. As far as your credit, it will show that you did pay the settled amount. It will not continue to hurt you anymore than what it already did.

This debt is considered paid, and will affect your credit score, more and more as time goes by. Most debts disappear completely off of your report after seven years.

Answer 4

Negative credit reporting will be on your report for 7 years. In some cases, by paying that old debt you actually reset the 7 year clock for negative reporting. If you have accepted their settlement offer, then you can assume it is paid in full. You should really check before paying anymore old debts. As it may hurt you more than help you. A company can only legally report negative credit for 7 years though.

Answer 5

If this should happen, get the collector to agree to notify the three credit reporting agencies. Then, on your check paying the settlement amount, write "Paid in full."
Just make sure that the creditors the collector told you he/she represented are in accord and included in the pay off.

Answer 6

You still have that bad debt showing up on your credit report. Whether or not you eventually pay it off, it was once a bad debt and it will stay on your report for at least 7 years.

Answer 7

no its not paid in full, just the settlement and they can't keep on calling because u settled with them..