Whither payoffs to scum?
September 21, 2007 12:16 PM Subscribe
How do I best pay off a small debt to a collection agency?
A few years ago while on vacation, I got a one-year contract for a Verizon phone and ignored it once I got back home and after I got a work phone. This turned into collection agency business and I've been getting hangup and automated calls from them for the past couple of years. I'm trying to clean up my financial situation in preparation for buying a house in the next few years, so I'd like to get rid of this so I can work on my credit score.
It's been pretty much a matter of stubbornness up until now, not wanting to encourage the collectors even though I'm fairly sure Verizon can have nothing to do with this any longer. I have a good job and the amount is only about $300. I have read on credit boards that you should never pay a collection agency with anything that reveals your bank information, like checks or EFTs. I also read that Verizon is patently not in the business of doing "pay for removal" or anythnig that will actually erase this from my report (I'm willing to entertain alternative approaches though).
I'm not opposed to putting some time into this if I actually can get it removed, but my prime motivation is to get on with my life and stop getting the calls and snail mail.
A few years ago while on vacation, I got a one-year contract for a Verizon phone and ignored it once I got back home and after I got a work phone. This turned into collection agency business and I've been getting hangup and automated calls from them for the past couple of years. I'm trying to clean up my financial situation in preparation for buying a house in the next few years, so I'd like to get rid of this so I can work on my credit score.
It's been pretty much a matter of stubbornness up until now, not wanting to encourage the collectors even though I'm fairly sure Verizon can have nothing to do with this any longer. I have a good job and the amount is only about $300. I have read on credit boards that you should never pay a collection agency with anything that reveals your bank information, like checks or EFTs. I also read that Verizon is patently not in the business of doing "pay for removal" or anythnig that will actually erase this from my report (I'm willing to entertain alternative approaches though).
I'm not opposed to putting some time into this if I actually can get it removed, but my prime motivation is to get on with my life and stop getting the calls and snail mail.
I have read on credit boards that you should never pay a collection agency with anything that reveals your bank information, like checks or EFTs.
That's decent advice if you're going to be incurring bad debts on a regular basis--it could make it easier for them to find where your attachable assets are hidden. It sounds like this would apply to other people, not necessarily to you, since you're unlikely to go out to collection again soon.
I also read that Verizon is patently not in the business of doing "pay for removal" or anythnig that will actually erase this from my report.
You can always ask them, the worst they can do is say know. It only costs you your personal time. Also, the decision might lie with the agency, not with Verizon.
If it has proceeded as far as a court judgment against you, then it's a matter of public record, and will be in your report for 7 (?) years regardless. (And possibly searchable online, published in local business newspapers, etc.)
A small thing, but you might consider double-checking in the future to make sure that it's marked 'paid' on your report, if it is still being reported and it's going to stay there.
Have you looked at your report? There's even a chance that it's not being reported at all--it's been known to happen.
posted by gimonca at 12:43 PM on September 21, 2007
That's decent advice if you're going to be incurring bad debts on a regular basis--it could make it easier for them to find where your attachable assets are hidden. It sounds like this would apply to other people, not necessarily to you, since you're unlikely to go out to collection again soon.
I also read that Verizon is patently not in the business of doing "pay for removal" or anythnig that will actually erase this from my report.
You can always ask them, the worst they can do is say know. It only costs you your personal time. Also, the decision might lie with the agency, not with Verizon.
If it has proceeded as far as a court judgment against you, then it's a matter of public record, and will be in your report for 7 (?) years regardless. (And possibly searchable online, published in local business newspapers, etc.)
A small thing, but you might consider double-checking in the future to make sure that it's marked 'paid' on your report, if it is still being reported and it's going to stay there.
Have you looked at your report? There's even a chance that it's not being reported at all--it's been known to happen.
posted by gimonca at 12:43 PM on September 21, 2007
I have a 4-year-old $700 t-Mobile bill that I used to get bill collector notes about, and it has never appeared on my credit report. I check it pretty regularly.
posted by M.C. Lo-Carb! at 12:46 PM on September 21, 2007
posted by M.C. Lo-Carb! at 12:46 PM on September 21, 2007
Response by poster: I'm 99% sure it's on my report. I last checked about six months to a year ago, but I'll check again.
It's not a court judgement or anything, just a nagging debt (probably for all concerned).
posted by rhizome at 12:46 PM on September 21, 2007
It's not a court judgement or anything, just a nagging debt (probably for all concerned).
posted by rhizome at 12:46 PM on September 21, 2007
You can find all sorts of useful information on how to deal with debt collectors and paying off debts on The Consumerist. Here's a link to all posts tagged "debt collector". Look through them all - there's several pages. Lots of good information. http://consumerist.com/consumer/debt-collectors/
posted by Jupiter Jones at 1:22 PM on September 21, 2007
posted by Jupiter Jones at 1:22 PM on September 21, 2007
Dodge them for 7(?) years and then pay up to silence the noise. (maybe)
I dodged the college credit card and student loan payments for ages and ages due to lack of funds. Eventually they caught up with me again. I told them to send me something in writing via mail, they did, I paid them off, and all is well.
I had trouble getting a car financed not for bad credit, but for non-existant credit... Maybe because I waited so long to pay them back...
posted by zengargoyle at 1:23 PM on September 21, 2007
I dodged the college credit card and student loan payments for ages and ages due to lack of funds. Eventually they caught up with me again. I told them to send me something in writing via mail, they did, I paid them off, and all is well.
I had trouble getting a car financed not for bad credit, but for non-existant credit... Maybe because I waited so long to pay them back...
posted by zengargoyle at 1:23 PM on September 21, 2007
If you don't want them to have any of your bank details, then get the pay off amount from them and send them a money order.
posted by happyturtle at 1:33 PM on September 21, 2007
posted by happyturtle at 1:33 PM on September 21, 2007
If you don't want them to have any of your bank details, then get the pay off amount from them and send them a money order.
There's nothing they can do with your bank details besides know where to attempt to enforce a judgment. If they withdraw money from your account, you eat them for lunch.
posted by oaf at 1:55 PM on September 21, 2007
There's nothing they can do with your bank details besides know where to attempt to enforce a judgment. If they withdraw money from your account, you eat them for lunch.
posted by oaf at 1:55 PM on September 21, 2007
Once you pay, it starts the 7 yr. clock again. Be very careful!
posted by 6:1 at 2:34 PM on September 21, 2007
posted by 6:1 at 2:34 PM on September 21, 2007
BTW--tell them to stop calling you. Put it in writing, they have to stop.
posted by 6:1 at 2:42 PM on September 21, 2007
posted by 6:1 at 2:42 PM on September 21, 2007
Email in profile, I should be able to help you with this.
posted by cashman at 3:40 PM on September 21, 2007
posted by cashman at 3:40 PM on September 21, 2007
The question is, what is on your credit report? Do you have something from Verizon and the collection agency or just one or the other or both?
If I were you, I would pay it, but only agree to pay it if they agree to remove completely from your credit report. I helped a friend fix her credit, and we called a few collection agencies and they were very eager to make deals to get their money and remove from the credit report. I used to work for the phone company, and my guess is that they would be less likely, but I'm not so sure. Most phone companies contract out their collections departments as well.
Another thing that may work, is disputing what is on your credit report. I have disputed things on credit reports that have been removed -- no questions asked. It really just depends.
Finally -- Creditboards is a great resource, and they have form letters on there to resolve debt issues.
I would make a few phone calls without giving them any information, or acknowledging if the debt is valid or not before making a decsion.
posted by hazyspring at 5:27 PM on September 21, 2007
If I were you, I would pay it, but only agree to pay it if they agree to remove completely from your credit report. I helped a friend fix her credit, and we called a few collection agencies and they were very eager to make deals to get their money and remove from the credit report. I used to work for the phone company, and my guess is that they would be less likely, but I'm not so sure. Most phone companies contract out their collections departments as well.
Another thing that may work, is disputing what is on your credit report. I have disputed things on credit reports that have been removed -- no questions asked. It really just depends.
Finally -- Creditboards is a great resource, and they have form letters on there to resolve debt issues.
I would make a few phone calls without giving them any information, or acknowledging if the debt is valid or not before making a decsion.
posted by hazyspring at 5:27 PM on September 21, 2007
Once it's gone to collections, the only person who benefits if you pay anything is the collections agency. I don't know about you, but I place those guys in the category of tow-truck operators and bail bondsmen, i.e. people who you should avoid giving money to if at all possible.
You have three options:
Send a certified letter, return receipt requested, requesting that all further contact be by postal mail, then ignore them, then inform the credit agencies when 7 years have elapsed.
Send a certified letter, return receipt requested, attempting to negotiate a small payment in exchange for deletion of the item.
Send a certified letter, return receipt requested, asking them to validate the debt. make them provide proper validation in a timely fashion, and if they don't, sue them.
That last link is from a Verizon dispute, btw.
posted by Mr. Gunn at 8:24 AM on September 25, 2007
You have three options:
Send a certified letter, return receipt requested, requesting that all further contact be by postal mail, then ignore them, then inform the credit agencies when 7 years have elapsed.
Send a certified letter, return receipt requested, attempting to negotiate a small payment in exchange for deletion of the item.
Send a certified letter, return receipt requested, asking them to validate the debt. make them provide proper validation in a timely fashion, and if they don't, sue them.
That last link is from a Verizon dispute, btw.
posted by Mr. Gunn at 8:24 AM on September 25, 2007
This thread is closed to new comments.
posted by Mister_A at 12:38 PM on September 21, 2007