Should I accept a payoff to a collector?

Question

Have 7300 left to pay to a collector who has a judgment against me, it was for an auto loan, car was repo'd, he got the judgment, we are paying $200/mo. I know the longer you pay, the longer it takes to come off your credit report. Already have the repo and the judgment on our report, would it not be better to pay 6000 to him (his offer) and be done with it and get it on the way to falling off my credit report? He is not charging any kind of interest.

Answer 1

Well, in my opinion; no.

The judgment is on your record - those will remain on there for a very long time. and the odds of getting the collection agency to remove it are slim and none.

Your credit is probably in trouble right now anyway; meaning that cash is more likely more valuable than your potential credit rating.

However, if you've let the collection agency know that you can raise $6000 in cash, they will probably never stop hounding you until you give it to them.

Offer half; and remind them you can keep sending them payment for the next 5 years if they'd like.

Answer 2

The judgment amount is the amount that the court awarded the creditor. If the creditor wants to settle for a different amount, and you can do that, fine.

But make sure that you tell the creditor that they will need to file amended paperwork with the court. Otherwise, if they want to be crappy about it, they can show the court what you paid, and then come after you for the rest of it, no matter what they have said to you. Even a written agreement between the two of you isn't good enough, unless it's been filed with the court.

Answer 3

first of all consider hiring a lawyer because did the debt collector PURCHASE the debt or were they assigned the debt? Get a consumer law laywer, you might be able
to sue them back for
)Not proving you owe THEM the money
therefore although you do owe the money, they did not
show you any proof that they were collecting the debt
Did they prove to you they owned the debt? Did you
sign anything with them that if they purchased the
debt you authorized them to collect from you?
read thru creditinfocenter.com and then think about
hiring a lawyer. I had my car re=po and hired a lawyer
and he discovered they never had a payment history
of my payments and therefore couldn't prove what I
really owed . I got all my money and went and bought
a new car !!!!


www.creditinfocenter.com

Answer 4

NO. Do not pay one cent. They took the car; therefore, you don't owe them anything. Will they return the car to you if you make payments? Unlikely. Paying them $6000 is just profit in their pocket and gives you absolutely nothing in return. You don't even get to keep the car after paying back the $6000. What's even worse is that after collecting your money, the delinquency remains on your credit report for 7 to 10 years.

The only reasons you should payoff:

1. They promise to remove the blemish and you need a clean credit history to buy something else, like another car or a house.
2. They will give you back the car if you make a substantial payment and continue making payments and remove the delinquency from your credit report.

Answer 5

Since they have a judgment statute of limitations is out. See what they will settle for in one cash payment, but get this in writing along with that upon settlement of this debt all references to this debt will be stricken from your credit report. I reiterate in writing and all. Not in e-mail but in registered letter, then you have proof and can be stricken from your record, or if not removed written proof that it should be and thus easily disputed

Answer 6

Yes, I highly recommend you get it taken care of and just pay it off. This will allow to credit to be back into rebuilding mode.

Answer 7

If you have the money to pay it. I would pay it and be done with it.