Does paying a recent charge off that has been transferred to a collection agency help your credit score or should you just leave the debt unpaid and wait out the 7 years?
If you can affourd to pay it, then it will help your score to do so. However, If it will be falling off your credit report within the next 2 years, then it would be better to wait for it to fall off.
Paying off charge offs, or collection accounts, do NOT improve your credit score and can under certain circumstances lower the score. This is one of the fallacies about credit. A paid charge off is still considered a derogatory account. The factor that causes the largest deduction to the score is when the account was last reported by the creditor, not the amount or the status (paid or unpaid).
I appreciate the above. But the lender can and frequently does require you to pay off the old debt anyway. Moreover, that craziness in official scoring is true for maybe 6 months. Most importantly it is happening in what might be the more junior and mechanical part of the process of actually approving a loan... many more things will actually go into it than the credit score.
So, lets see, if I was a lender, now and 6 months (or even 5+ years)in the future, as how trustworthy do you think I would comparatively rate these two, or desire them as customers:
1) He has not made payments on his previous promises. He still owes others money that he doesn't seem able, or maybe it's interested in, paying. They probably have the right to seize what he owns, or makes as salary in the future. Salary/money, which if he is actually intending to pay me (unlike anyone else it seems), is what he might have expected to pay me with! And those others want to get repaid, and will have a right to an amount that will continue growing by fees and interest charges, so his expenses are actually higher already than he's telling me. I can require he pay off those old debts I guess, but especially if he basically uses my money to pay those off, do I really want to be in the shoes of those he isn't paying now?
2) He seems to have had a tough period and missed payment obligations for some reason, (but that was XX ago / there is an explanation in credit file). Gotta' say s/he really wanted to stay responsible/honorable and worked through it, made good on his promise overall and paid them. He doesn't seem to owe others now, at least not more than he seems able to pay on what he's making....
I don't know about you...but not only would I'd sure have to rate #2 MUCH HIGHER, I'd avoid #1 like the plague!
How many times and how often can a collection agency post an account to your credit report as a charge off?
Can a collection agency report and collect a debt that is shown as a charge off from another creditor?
Only the credit bureaus the collection agency can remove a collection from your credit report. The collection agency won't do it now since it is paid and they have no reason to. You can dispute it to the credit bureaus and ask for verification on the account. They will have 30 days to verify the items or it must be removed from your credit report.
What does it mean when your credit report states that you have a paid closed collection account on you credit report?
Can a collection agency continue to report a collection account to the credit bureau after the account is sold to another collection agency?
Removing Paid Accounts from a Credit Report If you haven't paid your collection account(s) yet, negotiate with the collection agency. State that you plan to pay in full, and that you want them to agree to remove the item from your credit report. If you've paid, and the item remains on your report, go to the credit bureau and dispute the item that has been paid. It's a good chance that the collection agency has…
How do you get rid of the money that you owe from collection agency without paying them and become good credit again?
Yes. Remember that credit repost are usually any where from 30 to 90 days behind. So, if a debt was originally $100.00 when it was turned over to collection, the collection agency can then start adding their own late charges which gets added to the original amount. So the credit report may say $100.00 but after the late fees it may actually now be more.
You had a credit card account which they charged off and sold to a collection agency ca Now you have that charge off which carries a balance and a CA collecting on the same debt What could you do?
It is unlikely that the account was "sold" to a collection agency. Rather, the agency was contracted to recover the debt. The "charge off" of the account only affects the original creditor, and represents a loss reported against the company's taxes. If the collection agency has attempted to recover the debt and has been unable to, the original creditor will likely pull back the account and refer it to another agency in hopes of greater…
No. A collection agency has no legal authority. They can refer the account to a collections attorney who can then file a lawsuit for the debt owed. Yes! A collection agency has the right to file a lawsuit as the assigned creditor under the agreement that you signed when applying for the credit card.
When a credit card account has been charged off can the collection agency charge you additional fees and interest?
I am a professional debt collector and would say the best answer would be to either contact your credit card company and see to whom they sold the debt, as they no longer own the debt and therefore can not help you rectify the situation. The other option would be to pull a credit report on yourself and check to see if the collection agency is on your report, or if there was an inquiry…
collection i believe is a company that sets you on a payment plan to make it easier for you to pay. charge off you will never beable to get credit it is paid off but you will never be able to get a loan To my knowledge, charge off means the business charged it off as a loss and collection means they are pursuing the person for the money or paying an agency to pursue…
They may have a host of legal remedies available to them. First the account may be transferred to a collection agency which will report your collection and damage your credit. That agency or the original creditor may decide that the debt is worth persuing legally. They may take you to court to obtain a judgment against you. From that point you may end up with wage garnishments or other consequences.
If a debt has been paid to the original creditor and they recall it from their collection agency will a dispute succeed in having it removed from the credit report?
If a second collection agency takes over a unpaid debt can they have that collection put on your report?
If you refuse to pay a doctor referred by a 'if we do not win you do not pay' lawyer who took a car accident case will it hurt your credit?
Is the doctor going to turn the account over to a collection agency? A collection account would hurt your credit. Is the collection agency going to sell the account to another agency, thus extending the time period it shows on your credit report? If they do, it could hurt your credit for an even longer period of time.
Asking If you pay the collection agency can you have the derogatory item removed from your credit file?
The original creditor either sells the debt to a collection agency or the collection agency may aquire the debt on a contingency basis. At any rate once the account is in collections 30 days from the date of turn over the collection agency has the right to report the account to the credit bureau. Accounts are sent to the credit bureau via internet with encrypted files.