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 indicate that you have, you may have accounts in collections. It is important to know how this affects your credit and what you can do about it, since 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 can result from a debt that has not been paid on time. If you become significantly delinquent on a debt, such as a medical bill or credit card bill, the original company owed will often write off this debt as a loss and sell it to a collection agency. The collection agency will then attempt to recover the money owed.

While different creditors and lenders have different policies, many credit card accounts are sent to a collection agency after 180 days of non-payment. Either the original creditor or the collection agency may report the account in collections to a credit bureau, resulting in the account being marked on your report with a "collection" status. You will not necessarily be notified by the original creditor that your account is being sent to collections.

If an account in collections is reported on your TransUnion or Equifax credit report, you can access your full report or the collections page to view details about any reported accounts. (You'll only see the collections page if open or closed collections accounts have recently been included on your report.)

What does it mean for my credit?

If you have an account reported as in collections, your credit score may drop by a substantial amount. The degree to which a collection hurts your credit score is generally correlated with how high your credit score is when the collection agency reports the debt. The higher your score, the more points you can lose.

In addition, the amount of damage to your credit score may be affected by the collection amount, or how much you owe. 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 may not significantly hurt your credit score or even hurt it at all. Some credit scoring models may also differentiate between types of collections debt, such as medical versus non-medical, or disregard collections accounts that have been paid.

The resulting credit score drop from having an account in collections can impact your future financial plans. 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 Collections Accounts

There are many different ways to respond to debt collectors and what's most appropriate for you will depend on your circumstances. If you believe the collection account information is accurate, you could attempt to negotiate and settle with the collection company. We recommend you check out resources from the Consumer Financial Protection Bureau on how to reply to a debt collector and what the best ways are to negotiate a settlement.

While you are determining 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 may have a less significant impact on your credit. In addition, paying all your other bills on time could help your credit score recuperate from a debt collection.

How to Dispute an Erroneous Collections Account

As with other types of credit report errors, you may file a dispute with the credit bureau if you believe the collections account reported is false or outdated. For example, if it is not your debt or if it has been seven years from the original delinquency of the debt, you could request to have the collections information removed from your report.

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

Disclaimer: All information posted to this site was accurate at the time of its initial publication. Efforts have been made to keep the content up to date and accurate. However, Credit Karma does not make any guarantees about the accuracy or completeness of the information provided. For complete details of any products mentioned, visit bank or issuer website.

All Comments

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2 Contributions
1349 People Helped

Helpful to 1346 out of 1374 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.

Reply by
dbrowngifted

1 Contribution
11 People Helped
Helpful to 11 out of 13 people

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
cmdriscoll

2 Contributions
92 People Helped
Helpful to 90 out of 124 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
Tiger2132

1 Contribution
78 People Helped
Helpful to 78 out of 110 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
Tweetie88

2 Contributions
28 People Helped
Helpful to 2 out of 2 people

I agree with you 100% I am taking care of my credit and my debt on my own. Those companies that say they can fix your credit is a rip off and will have your credit looking worst than it was in the beginning

Reply by
sweepmaster

1 Contribution
2 People Helped
Helpful to 2 out of 2 people

Look into credit section 609  its the. LAW

Reply by
Kuuip0

1 Contribution
8 People Helped
Helpful to 8 out of 11 people

have you also seen an increase in your credit score?

Reply by
ibjson

1 Contribution
1 Person Helped
Helpful to 1 out of 1 people

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
Collins37

1 Contribution
0 People Helped

The BBB is the The Better Bussness Bureau.  I hope that helps?

Reply by
KBernard52

2 Contributions
0 People Helped

Thanks so much, Ms Jade 205!  That's good to hear.  

Reply by
Radconnie

1 Contribution
0 People Helped

How long did it take for your score to recover? 

Reply by
Jdana70

2 Contributions
40 People Helped

I've been doing the same thing. You have to be patient and persistent. You don't need to hire anyone. You just need to do the work.

Reply by
ACOLAKOV

1 Contribution
0 People Helped

This is excellent! Are the items you had removed already in collections with a third party? I have one item from Direct TV in collections. So all I have to do is call them and ask if they will have it removed from my credit report? How do I prove that this was promised, just get the representative's name and date of promise? Please let me know because this one report is affecting my credit report in an extremely negative way! Thank you for your help! 

Reply by
Rileycoin

1 Contribution
0 People Helped

Thank you. Very helpful

Reply by
rayboy001

1 Contribution
0 People Helped

Thanks for the information, This will help me alot. 

Greatly apprecieate your comment.

Reply by
Mizani1

1 Contribution
0 People Helped

good morning, exactly what did you have to do to ge these items removed?

Reply by
Phoenix42

2 Contributions
0 People Helped

Thank you for that imsight. Iknew it was possible and you have convenienced me of such. 

I just called somewher ea few people have raved about and they want $99.95 per month, cancel anytime. when they did it, it was $60/mth.

It does take patience, perserverence, and knowledge so you do need t oedcuate yourself and research as uch as possible, Talk to those who are willing to share knowledge and experiences, tips and tools of fthe trade that know and understand the journey. 

Thank you! 

Reply by
Nnl

1 Contribution
0 People Helped

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

1 Contribution
0 People Helped

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

Reply by
ericariley0405

1 Contribution
0 People Helped

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
bananame3

1 Contribution
0 People Helped

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
Michaelalston

2 Contributions
0 People Helped

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
amojha

1 Contribution
0 People Helped

who is bbb? how do i go about it?

Reply by
CreditGirlyOne

1 Contribution
0 People Helped

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
shanta87k

1 Contribution
0 People Helped

what is BBB?

Reply by
rdb0421

1 Contribution
0 People Helped

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
ericap798

1 Contribution
0 People Helped

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
Jmama012

1 Contribution
0 People Helped

whats is bbb and thier number?

Reply by
TheLadyMae

1 Contribution
0 People Helped

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
KenPC

1 Contribution
0 People Helped

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

Reply by
carolrusty25

1 Contribution
0 People Helped
Helpful to 0 out of 1 people

I wouild like to know what you are dioing also. I have one and it is paid and has been paid

but thecompany  refuses remove it. Let me know what I can do

Carol

Reply by
quinej2001

1 Contribution
0 People Helped
Helpful to 0 out of 1 people

Sorry but, what is the BBB

Reply by
qpayne

1 Contribution
0 People Helped
Helpful to 0 out of 1 people

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.

1 Contribution
954 People Helped

Helpful to 954 out of 1026 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. 

Reply by
denikids4

4 Contributions
244 People Helped
Helpful to 241 out of 270 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
jonaialynn

2 Contributions
68 People Helped
Helpful to 68 out of 89 people

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

Reply by
lillyhunter

2 Contributions
68 People Helped
Helpful to 2 out of 2 people

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

Reply by
stacyt0049

5 Contributions
146 People Helped
Helpful to 2 out of 2 people

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

Reply by
zanzibar40

2 Contributions
70 People Helped
Helpful to 8 out of 11 people

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
dmouyiaris77

1 Contribution
5 People Helped
Helpful to 5 out of 7 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
MedicalDebt

6 Contributions
1880 People Helped
Helpful to 1 out of 1 people

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
spike1only

1 Contribution
1 Person Helped
Helpful to 1 out of 1 people

Where did you go to find this out??

Reply by
YIP15

1 Contribution
0 People Helped

Hi @ Ashelymfrank27's

I just found out i have a debt on collection from two years ago.. I had no idea about.. It was from the hospital (laboratories) and i asked, once i'm done paying would it be off my credit report, they tol dme no  it will only show as "paid" .. any advice?

Reply by
calipatient

2 Contributions
1 Person Helped

I just came across your post and I would like to know what you found out.

This has given me something to check out pertaining to my own medical bills.

Thank you.

Reply by
Karenrabbit

1 Contribution
0 People Helped

HOW?  All of my debt is from the ER and I would love to get these off my credit.

Reply by
kenbod

1 Contribution
0 People Helped

is it true most all my collections are medical because i am disabled. what do i have too do to apply this information  i cant pay collections because my medicines account for 29% of my gross income which is only $1200 per month! any info may help get out of my dark place, thanks

Reply by
BallBags

3 Contributions
0 People 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
Crystallee2011

1 Contribution
0 People Helped

Is this true with michigan? 

Reply by
nedgied

1 Contribution
0 People Helped

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
amforbes04

1 Contribution
0 People Helped

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
Skmarschke

1 Contribution
0 People Helped

how can you get them taken off your credit report?

Reply by
slayer2469

1 Contribution
0 People Helped

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

Reply by
BellahDonnah

2 Contributions
3 People Helped

Thank you for the information.  

Reply by
mandylanderson

1 Contribution
0 People Helped

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
JoFash

1 Contribution
0 People Helped

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
NavyCurls

4 Contributions
6 People Helped

I have several bills in collections from hospitals.

Reply by
Jsng

1 Contribution
0 People Helped

Do you now what's states?

Reply by
Mauikids

2 Contributions
0 People Helped

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

2 Contributions
0 People Helped

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
antonio3b

2 Contributions
0 People Helped

how do i go by doing this

Reply by
gixxerkid843

1 Contribution
0 People Helped

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
Ec928

1 Contribution
0 People Helped

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
ayersm1234

1 Contribution
0 People Helped

What state are you in?

Reply by
Ebonyhazel

1 Contribution
0 People Helped

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
gregorynicholas

1 Contribution
0 People Helped

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

6 Contributions
1880 People Helped

Helpful to 210 out of 244 people

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
Jdana70

2 Contributions
40 People Helped
Helpful to 40 out of 54 people

What your saying is crazy. You can pay off the bill and ask the collection agency to remove it and they will. It will not hurt you for 7 years because if they agree to delete it they will.

Reply by
awafford1

2 Contributions
17 People Helped
Helpful to 17 out of 26 people

you are so right about that and they call and call even threaten you saying they are coming to serve you papers and crap like that

Reply by
67fastback

1 Contribution
4 People Helped
Helpful to 4 out of 7 people

This is true! I have a friend who was a realtor and told me that it did your cred more harm by paying debts in collection.

Reply by
Paul91016

2 Contributions
3 People Helped
Helpful to 3 out of 9 people

Hi

I am using LexingtonLaw.Com and they ahve done wonders for me my bankrupcy record has gone that is 3 years old. My credit score has gone up from 587  to 613 in 3 months. It only costs around $59.00 per month. People use them, not worth and time we spend in writing and mailing letters month after month to have recorded  deleted. It is time consuming doing on your own.

Be smart and use LexingtonLaw.com and stay free to do other productive work

3 Contributions
103 People Helped

Helpful to 102 out of 114 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

Reply by
tinat919

1 Contribution
13 People Helped
Helpful to 13 out of 20 people

You r so rt.. This is true n unfair..

1 Contribution
225 People Helped

Helpful to 225 out of 238 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.

Reply by
thefactsplease

2 Contributions
227 People Helped
Helpful to 227 out of 234 people

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
kuttnitup

1 Contribution
39 People Helped
Helpful to 39 out of 45 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
toritroup

4 Contributions
85 People Helped
Helpful to 80 out of 99 people

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

Reply by
NavyCurls

4 Contributions
6 People Helped
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
MedicalDebt

6 Contributions
1880 People Helped
Helpful to 1 out of 1 people

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
1880 People Helped
Helpful to 1 out of 1 people

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
stacyt0049

5 Contributions
146 People Helped
Helpful to 7 out of 11 people

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

Reply by
Tinaxkhaos

1 Contribution
1 Person Helped
Helpful to 1 out of 2 people

What is a pay and delete letter?

Reply by
MrsLadyJJ

1 Contribution
0 People Helped

Good luck with that.

Reply by
jcarrillo215

2 Contributions
0 People Helped

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
postalunit

1 Contribution
0 People Helped

WHAT IS A PAY AND DELETE LETTER

2 Contributions
68 People Helped

Helpful to 66 out of 82 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.

1 Contribution
116 People Helped

Helpful to 116 out of 130 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

Reply by
cpolk2012

1 Contribution
57 People Helped
Helpful to 57 out of 71 people

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

Reply by
Beredis

1 Contribution
8 People Helped
Helpful to 8 out of 11 people

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.

Top Contributor

Reply by
krisangelou1274

12 Contributions
60 People Helped
Helpful to 53 out of 95 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

Reply by
dom138

1 Contribution
0 People Helped

it's a bill just like a car payment.

Reply by
YANKEEBORNGAL

1 Contribution
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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.

2 Contributions
224 People Helped

Helpful to 82 out of 95 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.

Reply by
mrhowddy

1 Contribution
62 People Helped
Helpful to 62 out of 66 people

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

Reply by
kimbaslair

2 Contributions
95 People Helped
Helpful to 95 out of 104 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
juanita2002

2 Contributions
4 People Helped
Helpful to 2 out of 2 people

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....

1 Contribution
0 People 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
sandymae820

1 Contribution
0 People Helped

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

Reply by
AlexDavis74

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
selliott30

1 Contribution
2 People Helped
Helpful to 2 out of 4 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
Ftgfloors

1 Contribution
1 Person Helped
Helpful to 1 out of 3 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
DavvynJaykub

1 Contribution
0 People Helped
Helpful to 0 out of 1 people

you can have it removed if they renew it and you haven't tried to interact with them. It has to be listed from the time the account first became delinquent. Open an investigation and it will be removed from your credit. I have had 3 or 4 items removed in the last month or so because of this. It's illegal, but only enforced when caught by you.

Reply by
debozuna

1 Contribution
0 People Helped
Helpful to 0 out of 1 people

You only need to report back to the credit report agency that the original date of debt is ____.  This will stop the new claim.  Thy will remove it, once they know it is a duplicate.

Reply by
ebby48

1 Contribution
0 People Helped
Helpful to 0 out of 1 people

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

1 Contribution
54 People Helped

Helpful to 54 out of 65 people

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

Reply by
Shellyandbrett

1 Contribution
30 People Helped
Helpful to 30 out of 39 people

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

Reply by
gatorbait81

1 Contribution
17 People Helped
Helpful to 17 out of 24 people

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

Reply by
bernfew

1 Contribution
0 People Helped

Give me some tips

Reply by
shirleymarchant

2 Contributions
7 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
juanita2002

2 Contributions
4 People Helped
Helpful to 2 out of 4 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
Paul91016

2 Contributions
3 People Helped
Helpful to 0 out of 1 people

very time consuming. Use LexingtonLaw.com they charge me around $59.00 per month. The know how to to approach each problems. I am very pleased with them.

Top Contributor
116 Contributions
313 People Helped

Helpful to 78 out of 92 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? 

Reply by
DVRamanaReddy

1 Contribution
62 People Helped
Helpful to 62 out of 68 people

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

Reply by
creditbug1941

3 Contributions
13 People Helped
Helpful to 13 out of 22 people

hmmm , interesting....

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