Broke my lease and paying off the balance........?

Question

... the collection agency said that I could settle the amount and pay a smaller amount owed than originally owed. The gave me a letter stating they would remove the account from my credit report. Would this be a smart thing to do?

Answer 1

I'd go for it. Just make sure you have it IN WRITING before you pay them. Then if it is not removed from your credit report you'll have evidence to get it removed. Also, make sure that they can and will get the original debt removed as well. They can easily remove their own collection action, but may not be able to remove the original debt.

Answer 2

I am dubious on SEVERAL levels.
1) I own a collection agency that reports to the credit bureau. The promise of deletion is not a bargaining chip.
2) You are paying LESS than the payoff AND getting a deletion?
3) While the agency can request the deletion, it is just that, a request. They have limitations. They are NOT the credit bureau OR the original creditor, the apartment company.

Answer 3

Yeah because having an account in collections on your credit report looks really bad when attempting to get a loan or even find an apartment. If they can take it off it seems like thats your best choice, especially if they are allowing you to cancel your debts at a reduced price.

Answer 4

It depends...you need to find out if the landlord re-rented the property...your loses are limited to the lost rent BETWEEN him finding another tenant and associated costs with getting that tenant...and the costs must be deemed reasonable.

The landlord, by law, cannot "double dip"...they can't charge you with the balance of the lease and him getting a new tenant and collecting twice.

IF you think the charges are reasonable, then take the settlement....if not, then tell them that you would prefer to be taken to court...b/c a judge may not agree with everything they want to charge.