How Debts in Collections Affect Your Credit
How Debts in Collections Affect Your Credit

If you have neglected paying your bills, or a creditor's records mistakenly make it appear that you have, you may have accounts in collections. It is extremely important to know how this affects your credit and what you should do about it, as having an account in collections can be devastating to your score.

While it is best to avoid them, if you already have collections reported on your credit report, there are a few things you should know.

What is a collection?

A collection is an account that has been sold to a third-party debt collector. If you become delinquent--that is, miss several payments for anything from a medical bill to a credit card bill--the company owed will often write off this debt as a loss and sell that it to a collection agency. The collection agent will then attempt to collect the repayment from you.

While different creditors and lenders have different policies, many credit card accounts are sent to a collection agency after 180 days of non-payment. Both the original creditor and the collector are able to update the account on your credit report with a "collection" status and they are not required to tell you that your account is being sent to collections.

What does it mean for my credit?

If you have an account go into collections and reported on your credit, your credit score will drop by a substantial amount You can see how much this would affect your score with Credit Karma's Credit Simulator.

The degree to which a collection hurts your credit score is directly correlated with how high your credit score is when the collection agency reports the debt. The higher your score, the more points you will lose.

In addition, the amount of damage to your credit score is also determined by the collection amount, or how much you owe. Some scoring models now have a way of differentiating between consumers who have clear debt management problems and those who only have minor accounts in collections. For example, if the original debt you owed was less than $100, the resulting account in collections may show up on your credit report but it won't hurt your credit score.

The resulting credit score drop from having an account in collections will directly impact your future financial plans, as it may cause you to be denied for credit cards and loans, especially if the collection is recent or remains unpaid (or both).

Tips on what to do with an account in collections

Unless you negotiate with the collections agency to remove the mark, accounts with a "collection" status can stay on your report for up to seven years, whether or not you pay the debt back. While you are working out what to do with your account in collections, make sure to keep your other debts and accounts up-to-date.

As time passes, the collection account will have a less significant impact on your credit. In addition, if you pay all your other bills on time, this will help your credit score recuperate from a debt collection. You can also lessen the effects on your score by paying it off and negotiating with the collection agency to mark it as "paid in full" or "settled."

See more information on what to do if you have an account in collections.

How to dispute an erroneous account in collections

If it is not your debt, you are not required to pay it and creditors cannot list it on your report. In addition, if the seven-year period is up and the "collection" status still remains on your report or if you are still being contacted about a very old debt, it is possible that the account has been sold and resold a number of times and you should dispute the debt from your credit report. There is no statute of limitations on how long a collection effort can last, but some states do have a statute of limitations on how long a creditor or collector has to take legal action with your debt.

Learn about how to dispute wrong information on your credit report.


All Comments
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Helpful to 549 out of 559 people

I am doing this on my own, getting items removed from my credit report after paying them. I haven't had any letters sent to the collections company, I call and ask if they will do this, if they say yes, I pay it. If it is not removed in the next 30 days, I submit complaint to BBB, and guess what, it is taken off within 2-3 days. I have had 5 items deleted from my credit report in the last 2-3 months! You don't need to hire anyone to help you, this can be done on your own/by yourself.

Comment by
msjade205

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Helpful to 29 out of 39 people

Can you share what your doing, b/c I have paid off a lot and they are still there as unpaid,  open dispute for 'paid in ful' and they are still there. Even sent copies of the receipts to the 3 Major Credti bereaus and they are still there. Whats your secret msjade205

Reply by
cmdriscoll

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Helpful to 26 out of 36 people

what if you settled a situation through a collection agency years ago but it still shows up on your report even though you have a letter stating it was paid how do you get that deleted?

Reply by
Tiger2132

1 Contribution
26 People Helped

I paid my debt and still showing on my account. What can I do?

Reply by
Nnl

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have you also seen an increase in your credit score?

Reply by
Kuuip0

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How many points does it boost your credit score by eliminating an item in collections

Reply by
tiredofpoorcredit

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how do you find out the company info to do this? credit karma isnt showing the info for the companies claiming i have collections

Reply by
ericariley0405

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Sorry but, what is the BBB

Reply by
quinej2001

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i have paid some of the itema on my credit score but they have not been removed and i have letters from the company I paid off what do I do next to get it off.

Reply by
dbrowngifted

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My question is did it increase your score dramtically? and if you dont mind me asking how much debit were you in , i just dont know if i should file for bankruptcy or try and pay them off one by one?

Reply by
bananame3

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So when you have an account that is showing delinquent (sp?) on your report, you contact the agency and tell them you will pay if theyll take it off and if they dont you report to BBB and they take it off?

Reply by
Michaelalston

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A medcial hospital her in chattanooga has turned $400 over on my credit report again and it has brought my credit score down by 10 point that I just gain a month ago. I do not understand how they can keep turning over the same amount. It has not even been a year. Also, at the time of this bill I had insurance, and my ER copay was $200 not $400. That is why they have not been paid. I am going tomcall them again first thing Monday morning, but who is BBB? I am going ton get this paid off, but if they don't agree to take it off of my credit report, I just need to know the next person I need to contact.

Reply by
qpayne

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who is bbb? how do i go about it?

Reply by
amojha

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I have a few things to clear up, but I have a problem with one bill that the company made a mistake on and refuses to correct the issue. Do you have any advice for me? If so, my email is ambershan143@gmail.com I'd love to get some advice about this.

Reply by
CreditGirlyOne

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what is BBB?

Reply by
shanta87k

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What did you say in thecomplaint?  I have a bill I paid six mouths ago and it shows a zero balance but is still on my report.  I also just had a bill from Comcast that is rough six years old just pop on and when I called they refused to remove it.  Any help would be appreciated. 

Reply by
rdb0421

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I am trying to do this myself also, but have no idea where to start...how did you get the deragatory marks off your credit report?  Can you give me any tips or advice?

Reply by
ericap798

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whats is bbb and thier number?

Reply by
Jmama012

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I just paid skybluecredit.com to fix all my problems, now I worry they wont do what they say they will.  How did you find out who you owe, how much and how to get them deleted off your account??

Reply by
TheLadyMae

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So you call and the Negative impact on your credit score goes away in 2-3 days (from your situation)?

Reply by
KenPC

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hey i just have a question so you just called all the companies that you owed and said if you were to pay they could take it off your report in 30 days and most of them did 

Reply by
ibjson

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Helpful to 184 out of 189 people

Sometimes a collection can be wiped from your credit report if you send a Pay and Delete letter and the collection agency agrees in writing.  You will need to be prepared to offer a lump sum settlement in exchange for the account being deleted from your report.

Comment by
bkelly583

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the payment for deletion process usually entails asking the collection agency to send you in writing (even email) that they will send a Universal Data Form (UDF) to the bureaus to have the negative listing removed in their next transmital. Most collections agents might not have a clue what you're asking for so a manager may be someone to speak with.

Reply by
thefactsplease

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and sometimes instead of actually deleting it they sell it to another collection agency!

Reply by
toritroup

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Helpful to 3 out of 3 people

if you are willing to take the time and effort you can fight it and get everything off of your creidt report. by law these collection agencies can NOT put any marks on your credit report since the contract is between you and who ever you owe the money to. You can write a letter letting rquesting they produce the ORIGINAL agreement between you and them and they CAN'T! it does not matter that they bought this debt. it's their problem. You can also contact the credit agencies and have them remove those bad credits from your report because, AGAIN, by law it can only be from the original party that's owed the money. I will have to look up the law code for this. My uncle and brother sent out the letters and disputed with the collection agencies and it worked. My brother had a couple of banruptcies and lots of deliquent bills. once he started doing this and demanding they remove the negative marks he credit score jumped from like a 232 to almost 800 and was able to get a loan to build a house.

Reply by
kuttnitup

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Helpful to 2 out of 2 people

I've done this exact thing. I owed this one company a little bit for awhile and I couldn't pay for it. So, years later, I sent them a certified letter, saying I had the money and would pay them the entire amount if they would take it off my credit history. They responded that they would, so I sent them a money order via certified mail. When I checked later on, it was gone. Good thing I had it all in writing.

Reply by
NavyCurls

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Helpful to 7 out of 11 people

What is pay and delete letter?  Never heard of this term.

Reply by
stacyt0049

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Helpful to 1 out of 2 people

What is a pay and delete letter?

Reply by
Tinaxkhaos

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do you know what i should do if i found out i was in collections by credit karma and have yet not been contacted by a collection agency?

Reply by
jcarrillo215

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Listen up, folks...

*DO NOT PAY YOUR ACCOUNTS IN COLLECTION*

*YOU ARE ONLY THROWING AWAY YOUR MONEY*

Paying a collection company means you are giving your money away to a seedy collection company who strongarms and confuses people into paying these things all the time.  Your benefit?  Nothing.  *Nothing at all*

The original creditor has already sold the debt to the agency and your credit score is tarnished for 7 years.  End of story.  Welcome to America!

Take a swing back at the completely corrupt system that has put you in this situation and DO NOT PAY THE COLLECTION AGENCY EVER.

Here's why:

No matter what happened to lead you to having a derogatory mark -- whether it was actual deliberate negligence with a credit card, or completely uncontrollable medical debt -- the greedy lawyers and bank lobbyists who set up this idiotic system simply lump all of this debt together in one big "you didn't pay for this" category on our reports.

The end result is: you pay higher interest rates for EVERYTHING.  Which means *even more money* for the big banks.  Good luck getting our government to fix this, too!  It benefits those who have all the money, which incidentally are the people who run the government.

No matter how small the bill, no matter if it was an insurance company's clerical error / disorganization that led to the mark showing up on your report; It's there, it's severely impacting your credit score, and it's not going anywhere for seven years.  Period.

There seems to be a lot of faux information floating around that you can "pay-to-delete" accounts in collections from your report, but this is completely and totally unsupported by ANY facts.  I have *NEVER* seen a single *reliable* reference for how to handle this.  If pay-to-delete isn't analogous to the tooth-fairy, then CreditKarma should offer an integrated service (no 3rd party stuff which just seems like paid advertising) to help with this specific issue.  They don't.  Why?  Because you can't do this.  Because it's illegal.

At a minimum, CreditKarma should have an official "pay-to-delete" info page to dispell these rumors and set the facts straight.

Reply by
MedicalDebt

6 Contributions
136 People Helped

Listen up, folks...

*DO NOT PAY YOUR ACCOUNTS IN COLLECTION*

*YOU ARE ONLY THROWING AWAY YOUR MONEY*

Paying a collection company means you are giving your money away to a seedy collection company who strongarms and confuses people into paying these things all the time.  Your benefit?  Nothing.  *Nothing at all*

The original creditor has already sold the debt to the agency and your credit score is tarnished for 7 years.  End of story.  Welcome to America!

Take a swing back at the completely corrupt system that has put you in this situation and DO NOT PAY THE COLLECTION AGENCY EVER.

Here's why:

No matter what happened to lead you to having a derogatory mark -- whether it was actual deliberate negligence with a credit card, or completely uncontrollable medical debt -- the greedy lawyers and bank lobbyists who set up this idiotic system simply lump all of this debt together in one big "you didn't pay for this" category on our reports.

The end result is: you pay higher interest rates for EVERYTHING.  Which means *even more money* for the big banks.  Good luck getting our government to fix this, too!  It benefits those who have all the money, which incidentally are the people who run the government.

No matter how small the bill, no matter if it was an insurance company's clerical error / disorganization that led to the mark showing up on your report; It's there, it's severely impacting your credit score, and it's not going anywhere for seven years.  Period.

There seems to be a lot of faux information floating around that you can "pay-to-delete" accounts in collections from your report, but this is completely and totally unsupported by ANY facts.  I have *NEVER* seen a single *reliable* reference for how to handle this.  If pay-to-delete isn't analogous to the tooth-fairy, then CreditKarma should offer an integrated service (no 3rd party stuff which just seems like paid advertising) to help with this specific issue.  They don't.  Why?  Because you can't do this.  Because it's illegal.

At a minimum, CreditKarma should have an official "pay-to-delete" info page to dispell these rumors and set the facts straight.

Reply by
MedicalDebt

6 Contributions
136 People Helped

WHAT IS A PAY AND DELETE LETTER

Reply by
postalunit

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Helpful to 500 out of 528 people

Lexington Law is supposed to be a good source for cleaning up a credit report but they are being sued in a class action law suit because their services don't really do what it says.   I told creditkarma about it but they still advertise them on their website. 

Comment by
sharpei7

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Helpful to 244 out of 263 people

Yes never use these sites cleaning up takes time one debt at a time settle each one have them email you the agreement stating paid in full and off your report or you will pay half and they will bill you the other half. Documentation

Reply by
Patriotsvsbears

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Helpful to 124 out of 150 people

They are good for me a year ago i had 40 negative items on my credit reports and now i only have 4

Reply by
jlacey124

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Helpful to 5 out of 5 people

Lexington law firm is pretty good if you need help getting started repairing your credit when you might have let it get so out of hand that you have either given up trying to maintain a decent credit score or just don't know where to begin.  It can be a lot to deal with especially when you don't know what you can do and what is a waste of your time.  In my personal experience with them I have seen some pretty amazing results, but you won't get much out of it if you don't put in a sufficient amount of effort yourself.  I would suggest the people that are lost and need help getting started give these guys a call.  You can get a month for free which isn't going to get a lot done because it take longer than a month for letters to the bureaus and creditors to be received, review and responded to, but they are very good about making sure you have a person that you can call, email or chat with at just about any time of day to learn how to deal with collection agencies (many people don't realize most of what is said by collectors is borderline if not as illegal as calling a retirement home and telling the senior citizens if they don't give their credit card and bank account information then they will be kickout of their apartment!  They will also handle all disputes you tell them are not yours and continute to dispute them as long as you keep paying the service fee.  I have used lexington law firm since April 2013 and saw numerous creditors, collections and late payments that were my fault removed as if they were never there very quickly.  After the first "easy" negative items were gone one hear and one there would drop off and just yesterday I got a letter from a credit card company I had no choice, but to stop paying for over a 9 months (120+ day late payment, which is as bad as late payments get) and the letter said this item would no longer be reported to the credit bureaus.  That was the last of my negative items and while I could have done it myself, the amount of time and effort required to manage what amounted to at least 100 letters in total that were written for me by lexington, postage paid for by lexington, every one dispute was tracked so the minute a creditor or bureau did not respond within the time frame allowed by the Fair Credit Reporting Act, the item could be removed and when a dispute was complete they would do it all over again for you until someone on the other end dropped the ball.  It isn't magic.  You have to check the status of your disputes, send a letter for every inquiry on your report and ask questions so you understand the system.  The fact that the bureaus are for-profit companies that do not have any competition and are only separated by a thin line that make a substantial portion of their profits by charging people every month to have the "luxury" of checking their credit report as much as they want to see all the incorrect negative items on their report and do nothing to prevent or repair the incorrect items.  This is one area that needs regulated by the government and has no place being a for profit company.  By definition they are going to do what is in their best interest and not what is best for the consumer, legitimate lenders and debt collectors as well as the economy as a whole.  The system far from perfect and there are other option, but we must first educate ourselves so we are not as much of a slave to the system and in the long run a better solution will be available for rating the credit worthiness of an individual.  Long stroy short - Lexington Law firm is good if you need help managing a lot of disputes, don't know where to start or have very little knowlege of the credit reporting process.  Don't waste your money if it will only be for 1-3 disputes. 

Reply by
mheath120

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Helpful to 3 out of 3 people

They charged me an exuberant amount of money for me to just get "looked" at which is not what I signed up for.  They were supposed to help me out.  I wish I knew about the suit..

Reply by
BellahDonnah

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Helpful to 1 out of 1 people

i agree

Reply by
coolcourt101

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Helpful to 2 out of 3 people

I fully agree. Those rate heads were billing me $79 per month for 3 years and only remove 2 items. They told me all my Foreclosures would be removed in 6 months or less. There years later they still there. Here is the bad part, Foreclosures are suppose to drop off your credit report after 7 yrs. they were unable to get them remove. They need to be sued!

Reply by
Gotwripoff

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Yes, Lexington Law does work and its worth it.

Reply by
Andreikali9

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When was this recorded on my record as due?

Who does it say I owe?

Reply by
Thriftygirl1

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Lexington Law Firm doesn't guarantee any results on removals per the Credit repair organizations act and was able to remove over 3,000,000 negative items off of their clients report in 2012.

Reply by
thefactsplease

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156 People Helped

thanks so much for the information, I was going to utilize them to assist me in my clean up.  I guess I will just continue pulling them out of the hat, one month at a time.  

Thanks again

fe

Reply by
msfelisha

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You are very correct had them working on some issues for over 8 months, they could not resolve the my issues all they tried to do is to collect money from my account every month.

Reply by
mrqfm

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I too have dealt w/them about 10 yrs ago, it didn't help me at all - I could never get a straight answer from them and their amounts could not be justified in my book anyway.

Reply by
kimbaslair

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They are horrible

Reply by
mzjoshonda

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Try 640orfree.com/yourdreamsfunded  I have had several collections and one foreclosure removed and they offer a money back guarantee unlike Lexington that charges you every month indefinetly this is a one time charge.;

Reply by
marlorich1

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Helpful to 811 out of 875 people

The thing that the collections agencies do not want you to know is that the papers you sign at the doctors office/hospital prohibits hospitals from giving collection agencies access to your debt. It is against your right to privacy and in some states is against the law. I just found this out today and I will be looking into getting my medical bills taken off my report. 

Comment by
Ashleymfrank27

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Helpful to 199 out of 219 people

believe hospital debts do go against your credit, but I've learned just to go back to the hospital first to pay the debt and frankly thats with any debt always go back to where it originated from its easier and cheaper.

Reply by
denikids4

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Helpful to 48 out of 60 people

wow really? I have heard that hospital bills can't go against your credit. Where did you get this information from?

Reply by
jonaialynn

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Helpful to 5 out of 6 people

Hey interesting post.....3 of my medical bills are on collections and i don't even know from where....so ****ed. how are you going to go about removing them from your report? any advice would help. can you please reply? thanks so much and have a great day! -demitra

Reply by
dmouyiaris77

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well get back to me on that one  that is very intersting and can be helpful to me

Reply by
lillyhunter

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Ashley, pls update experience with that plan when u can pls.

Reply by
stacyt0049

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Please let me know what you found out because 95% of my negative credit items on my credit report are medical items and if this is a true statement I will be contacting a attorney to have all of these items removed and if they are not I will be sueing the doctors and the hospitals for breach of my personal information.

Reply by
zanzibar40

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In my case, not only are these medical bills, they are extremely LOW DOLLAR medical bills.  It seems RIDICULOUS that something so small would have such a big impact on our credit scores.

I have two marks which exist from VERY low-dollar medical bills which I didn't even *realize* were in collections until I got a letter from the collections company.  By that point, it's too late!  The mark is on my report for 7 years. Period.  My credit is *severely impacted for 7 years* and there's *absolutely nothing I can do about it*.

Hospitals and Insurance Companies are known to be incredibly disorganized, and insurance companies regularly deny payments for operations/medicine in order to try and save themselves money, only to finally authorize payment after a long, drawn-out appeals process!  It's shameful that the result of all that mayhem is citizens' credit being ruined.  In my case, it's especially frustrating considering I've made 100% on-time payment history (280 out of 280) for all of the accounts on my report.

At this point, even if I decide to pay the collections company, the mark stays on the report and continues to impact my credit in the same manner FOR 7 YEARS.

Can someone please explain: what's the motivation for *anybody* to *ever* pay something once it goes to collections and shows up on your report?  Is there any way to actually be guaranteed that a mark will be removed once you've paid it?  I have such a sour taste in my mouth about this that I don't want to pay a penny to a collections company if they aren't going to actually guarantee to get this junk off my report and then also do it.

Sounds like that's basically a pipe dream, huh?

Reply by
MedicalDebt

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Helpful to 1 out of 1 people

Where did you go to find this out??

Reply by
spike1only

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1 Person Helped

Same here my debt is all Medical From Back Surgery and a Lung Collapse, Ashley your making my Headache Go away, Debt Collectors have No Business In Medical Paper Work, If Anyone Reccomends A Pro Bono Lawyer Let Me Know, Im In NH 

Reply by
BallBags

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Is this true with michigan? 

Reply by
Crystallee2011

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Hi Ashley , Can you please email me that information and explain to me what actions you took to have your medical bills removed. My email address is nedgied@ yahoo.com

Reply by
nedgied

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Would mind sharing how this worked out for you? Were you able to get these debts deleted? If so please share what you did.  Thanks!

Reply by
amforbes04

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how can you get them taken off your credit report?

Reply by
Skmarschke

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It's true. The only negative marks on my credit are hospital bills.

Reply by
slayer2469

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Thank you for the information.  

Reply by
BellahDonnah

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How did this work for you & how might I go about doing this as well? I have a huge medical bill which was evidently not covered by my insurance, but since it took so long to process & get denied again they sent it off to collections and now have a huge debt for it.

If you could help me out a little by providing some information from your experiece with this that would be more than helpful.

This was great advice by the way, I would've never have thought about it, so thank you.

- Mandy 

Reply by
mandylanderson

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Thank you.  I have heard similar opinions to yours.  Can you cite the specific line in the law that refers to this?  I have a copy of 3 documents:

1. Fair Credit Reporting Act

2. Fair Debt Collection Practices Act

3. Fair Credit Billing Act

Do you know where the statements to support your position can be found?

Thank you,

J

Reply by
JoFash

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I have several bills in collections from hospitals.

Reply by
NavyCurls

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Do you now what's states?

Reply by
Jsng

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I live in California.  Do you by chance know the statute/law that prohibis hospitals from giving collections agencies access to my debt?  Does this mean that it is illegal for any medical debt to be on my credit report?  Thank you...

Mark

Reply by
Mauikids

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I live in California.  Do you by chance know the statute/law that prohibis hospitals from giving collections agencies access to my debt?  Does this mean that it is illegal for any medical debt to be on my credit report?  Thank you...

Mark

Reply by
Mauikids

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how do i go by doing this

Reply by
antonio3b

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Please let me know if you are able to get this done. I have hospital bills on my credit report and its hurting me quite badly. IDK if u can contact me on here or not...so please feel free to email me.

Thanks!

tralaf@gmail.com

Reply by
gixxerkid843

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Would you keep me up to date on that my score is low do to my medical bills if you can email me at enriquecorona55@yahoo.com thank you

Reply by
Ec928

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What state are you in?

Reply by
ayersm1234

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Ashleymfrank, how and where did you find the information that you posted about the collection agencies? I live in TN, and I am wanting to find where I can find out if that applies to my state also. Your help would be deeply appreciated!

Reply by
Ebonyhazel

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if it's not legal, what action of recourse do you have available?

Reply by
gregorynicholas

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Helpful to 88 out of 98 people

my debts in collections are medical bills. im gonna have medical bills and sometimes they come in much faster than a person with fixed income can pay and some are disputed by insurance company and it takes an act of congress to fix these. i dont think medical bills should account so much on your credit report

Comment by
hotdog420

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I agree that's the only thing on my credit score and its poor this sucks

Reply by
cpolk2012

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Helpful to 48 out of 84 people

i wouldnt worry bout medical every1 gets sick it medical it will write off in 7 yrs dnt contyact the creditors leave it alone wait 7yrs

Top Contributor

Reply by
krisangelou1274

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Medical Bills are not allowed to be put on your credit, however, they have found a loophole through collection agencies. If they "Sell" your medical debt then it's no longer considered "Medical". Very dumb.

Reply by
Beredis

1 Contribution
0 People Helped

it's a bill just like a car payment.

Reply by
dom138

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Helpful to 0 out of 2 people

JOIN THE CROWD THAT'S WHAT MINE R AND THEY CAN GO POUND SALT BECAUSE AFTER MY Car accident they stopped all my heart medicine and when u get a bill from WAYNE MEMORIAL IN GOLDSBORO,NC IT HAS TO BE PAID THAT NEXT DAY OR THEY WILL TURN U IN I HAD TO GO TO ANOTHER HOSPITAL DUE TOO I WAS HEALED AND THE DR RELEASE ME SO WHAT MY PRIVATE INSURANCE PAID THA'T ALL THEY R GETTING.

Reply by
YANKEEBORNGAL

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Helpful to 64 out of 71 people

It is almost impossible to fix a collection on your report.  I am 100% service-connected disabled and if I need medical help outside the VA then VA Fee Basis pays for it.  I have a collection from Coastal Radiology in collection.  I called VA Fee Basis to find out why.  They said that all bills submitted for those days in the hospital were paid.  Coastal Radiology did not send a bill.  As a favor to me VA Fee Basis called Coastal Radiology and told them to send them a bill.  Coastal Radiology refuses because they will only get about $150.  They want me to pay $430.  I called and wrote Transunion about this and put in a dispute.  They declined saying I owed it.  Transunion did not even call Fee Basis to check.  It is a scam to keep your credit score as low as possible.  Do they credit score companies get a kickback from banks etc? 

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Comment by
asa4ever

116 Contributions
249 People Helped
Helpful to 51 out of 54 people

yes. The system is under the control of financial institutions and Banks. it is Financial Mafia.

Reply by
DVRamanaReddy

1 Contribution
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Helpful to 8 out of 13 people

hmmm , interesting....

Reply by
creditbug1941

3 Contributions
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Helpful to 62 out of 69 people

It is a lie when they say a creditor will  only stay on your credit report is a lie. Some company's renew it right before the 7  years are up so it can continue to stay on your credit report.

Comment by
flakesno1Girl

2 Contributions
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Helpful to 52 out of 53 people

check your state law the credit b must remove it after seven year WITH NO ACTION FROM YOU

Reply by
mrhowddy

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Helpful to 71 out of 74 people

Capital One has been doing that with me - I am just paying off debts little by little every month - I too have hospital & radiology bills that went on my credit report so they can do that. When I get to a zero balance owed, (another few thousand dollars) I'm jsut going to sign up w/Experian for a few months & have them clean up my record. I had talked w/them a few yrs ago & they can do a lot but it's $19.95 (?) a month. Right now, it's now feasible but it will be when I finally see the black again! I wouldn't bother w/a Credit Repair Company, yeah some are ok, but I'd rather deal straight w/the one of the Credit Agencies & I did like what Experian did for me a few yrs ago, it's worth the $20 -  They do what they say they'll do. 

Reply by
kimbaslair

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Helpful to 1 out of 2 people

The only way that happens is if you validate a call from the collection agency. If you get a call from a bill collector never validate it(meaning if they ask to speak to you,dont) bc if you just made your 6 year and lets say 9 month mark, you just started that collection over for another 7 years.

Reply by
selliott30

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Helpful to 1 out of 2 people

This is very true,  although if you take no action and do not contact the collection agency for any reason it is supposed to fall off your report after 7 years.  I have had companies renew the collection date against me by selling it to another agency.  Although this may be fought (not sure - maybe I'm just screwed), who can you actually call that cares?  You call the collection agency and you'll get nowhere, you call the credit bureus and they can't do a thing either, even if you have proof of the date that your account initially went "past due" with the original creditor.  The fact of the matter is these companies can do what they want and get away with it.  If you didn't have the extra cash to pay the bill to begin with, you probably don't have the cash to hire an attorney to fight a most likely losing battle against these huge companies and they know that.  I've already gotten used to the fact that I'm going to be screwed by these people for years to come and I can forget about having good credit again for a while.

Reply by
Ftgfloors

1 Contribution
1 Person Helped

Yes, has happen to me. What can you do when this happens?? Any suggestions??

Reply by
ebby48

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0 People Helped

True and false! you must request via certified mail that you want it removed from each credit bureau and never within the seven years attempt to contact or acknowledge any attempts to collect the debt. if you do contact or accept communication the collection agency can renew account starting the years over. If you answer the phone never admit to the debt never say anything about old accounts. I am not encouraging irresponsible spending behavior but sometimes people have hard times....

Reply by
juanita2002

2 Contributions
1 Person Helped

this is definitely true, i have had that happen to me. they will keep renewing it so they can keep it on your report longer. it's really messed up how they manipulate the loop holes.

Reply by
screwedliketherest

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0 People Helped

That is so true or they sell it to their sister company and you are still screwed!!... 

Reply by
sandymae820

1 Contribution
0 People Helped

This is 100% true. this happenned to me. I had an old amount unpaid on my credit score from the year 2000. I stop using my credit (due to incarceration) until 2007. I received a collection letter and call saying that they will put it on my credit report if i didnt pay or make arrangement to have it paid. I was like "what"? But truly enough, they renewed it on my report.

Reply by
AlexDavis74

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Helpful to 46 out of 51 people

The whole system needs a revamp its absurd that I have over $50,000 worth of paid off cars over the year alone without missing a payment. I get sick and have about 2k in debt and my credit tanks to Very poor because of missed payments and collections. Life happens for the people that say "Just pay your bills" get over your self.

Anyway you can pay 1000 things on time and get 30-40 points missed 4-5 and your done for, for years. Horrible system

Comment by
jtp0823

1 Contribution
46 People Helped
Helpful to 43 out of 48 people

You dont need Lexington law to do this I'm doing it on my own

Comment by
Slackerfour1

1 Contribution
43 People Helped
Helpful to 22 out of 25 people

are there any tips on how to do this on my own?????

Reply by
Shellyandbrett

1 Contribution
22 People Helped
Helpful to 14 out of 17 people

Can u give me info on how to go about handling this myself? I would greatly appreciate it!! thanks

Reply by
gatorbait81

1 Contribution
14 People Helped
Helpful to 1 out of 1 people

Here is one of my favorite sites I recommend to most of my clients and friends, if they are having problems with creditors. It has sample letters and a do it yourself info tab.

http://www.debtconsolidationcare.com/letters/debt-validation.html

Reply by
juanita2002

2 Contributions
1 Person Helped

Give me some tips

Reply by
bernfew

1 Contribution
0 People Helped

How are you doing it on your own? I have things on my credit and I don't even know what they are , I paid my sears account off and it's still on my credit there I also had a fingerhut account that I never even used and it has reported as bad debt . I don't understand how when I never used it . 

Reply by
shirleymarchant

2 Contributions
7 People Helped
Helpful to 37 out of 44 people

In this econemy it is very hard to even have a good credit score If you loose your job and have loans you get screwed. Medical bills pile up. Even when you try your hardest to keep your bills out of collections some times you have other  emergencys that come up like me I went in to collections when my mom was passing away it was choose to let my bills go  and go to my moms bed side or pay bills and not see my mom before she died. Seriously some things can't be helped but they don't care all they see is $$$ signs and how to make us working folks hurt. I agree even if you pay off your debts that are owed it will never have a full garentee that it will take it off your credit. some times its better to just wait the 7 yrs it mostly does come off but you do come across those stuborn companys like capital one and other loan companys and credit collection agencys that just like to try and keep it draging out. The best solution for that is to dispute it. But in some ways my opinon is that credit can make or break you. But in reality it only means that those that can afford the luxurays of having the money to pay everything easy allways have the great credit and those that work hard and stuggel to keep up on bills and there familys suffer.

Comment by
lillyhunter

2 Contributions
39 People Helped
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