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If you settle for a lesser amount due from a collection agency will it have a negative affect on your credit report?
Wiki User
∙ 8y ago
Any collection account on your credit report is considered a derogatory listing regardless of status (unpaid, paid or settled). All accounts of this type have a negative impact on your score depending on when they are last reported/updated.
Since settlement is paying less than the full amount due, this is obviously seen as less favorable than paying in full. But, once again, it is the date last reported that impacts the score.
Wiki User
∙ 8y ago
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Can a collection agency Garnish if paying not full amount?
no
Why original creditors sale accounts to a collection agency?
Original creditors sale their accounts to collection agencies when the account has been past due and they have not effectively collected. At that time, the original creditor will charge off the balance from their accounts receivable and turn the account over to a collection agency. When the collection agency collects the debt, a portion of the amount received is paid the the collection agency and the remainder is returned to the original creditor as profit.
What is the use of a collection agency debt settlement?
A collection agency debt settlement means when someone is in debt and a company offers a settlement amount to the creditors owed. Payment arrangements are discussed and made, sometimes the amount is way less than the actual bill.
If a creditor has written off your debt can a collection agency then come after you for the amount?
If the debt has been cancelled, no; if the debt has been charged off, yes.
Can a debt collect change amount owed On documents from the debt collector each shows a different amount?
A debt collection agency will add fees and interest so the numbers will change as time goes by.
If the collection agency amount is more than the creditor amount which amount do you legally have to pay?
A collection agency legally require the amount of the debt, plus any other charges/penalties incurred in the collection of the debt.
Can a collection agency ask for my income amount?
no sorry
Can a collection agency Garnish if paying not full amount?
no
What are the consequences for not paying off a debt that is in collection?
Depending on the amount that you owe..The collection agency can sue you on behalf of the original creditor and place a lien on your finances or property. If it is a smaller amount generally it will be placed on your credit report and affect your credit rating in a very negative way for the next 7 years which will affect any major purchases you intend on making with credit. Either way, your best bet is to pay the debt!
Is there a dollar amount for collection agency's to report to the credit bureau?
A collection agency can report you to the credit bureau for any amount of money. There are agencies that will report for amounts under a hundred dollars.
What is the most a collection agency can garnish from your check?
this is an amount determined by a judge
What are your options if you are unable to pay the full debt amount to the collection agency?
Do NOT pay any money to a collection agency.......send your money to the debtor, the person you owe it to. Send it in the form of a check or money order. NEVER PAY A COLLECTION AGENCY
If a creditor uses a collection agency to collect on a debt do you still have to receive some kind of statement?
No. The collection agency will validate the amount for you if need be, but the creditor no longer owes you the courtesy of a statement.
What should you do if you get a letter from a collection agency and the amount of the debt is wrong?
The collection agency must give you thirty days to dispute any portion of the debt they claim you owe. You must send a written reply disputing the amount and any proof of your claim.
If you offer to pay a lessor amount on a hospital bill then was previously agreed upon can they still send the account to a collection agency?
Yes. You have a legal contract to pay the agreed upon amount. If they did not accept your latest offer, they can send the bill to a collection agency.
How do you stop collection agency calls with a letter?
Put a money order with the amount owed in the envelope.
Why original creditors sale accounts to a collection agency?
Original creditors sale their accounts to collection agencies when the account has been past due and they have not effectively collected. At that time, the original creditor will charge off the balance from their accounts receivable and turn the account over to a collection agency. When the collection agency collects the debt, a portion of the amount received is paid the the collection agency and the remainder is returned to the original creditor as profit.
