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Janinef517

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I currently have 5 accounts that are in collections.
I want to pay them off. However, when I contacted the collections agency they said that they are only allowed to mark it as paid in full and cannot delet it from my report. Is there a way that I can get it to be removed in my report once it has been paid off? Also, is it true that paying off things in collections lowers your credit score? IF it does affect your score will it stay low for awhile?

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Collection Accounts

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   Paying accounts will not raise or lower your score, per se. There are two dates with respect to collection accounts that are important: reporting dates and statute of limitations. The reporting date starts the day of your first late payment, i.e. if your first missed payment was 6/1/2010, and has gone to collections, then it must drop by 12/31/2017.    The'statute of limitations' on debt varies from state-to-state - averaging 4-6 years. If your state has a 6 year SOL, and if an agency brings suit, you have what is called an "Absolute defense" and they will not win. However, this does not affect the time an item stays on your CR.

   "Payment for Deletion" is the best way to negotiate with the collection agencies, but you must be ready to pay in full during negotiation. I have had success with this with the exception of one agency. If the account rep is not willing to play ball - ASK FOR A SUPERVISOR. Their metrics are based on how many calls are escalated, and they will more often than not, find a way to comply. Make sure your conversation is being recorded or you get a written agreement.

  Items over 2 years will not impact your CR as much as more recent items. Some people advise to let them be. However, depending upon your personal ethics, or, if you are shopping for a mortgage, you may want to pay. Many mortgages are contingent upon not having any unpaid, open collections on your account. For my family, our 2 collections were medical bills and we felt compelled to clear them up.

  The reason a payment might lower your score is if it has not been reported to a particular reporting bureau, and then the payment is reported - all of a sudden it looks like you have a new collection (e.g. - TU, EQ have a collection reported, but not EX - then a payment is made and reported to all 3). However...if you pay it off in full and they won't delete it, you can try demanding verification of the debt afterwards. It will drop off for a while and may not come back, as they don't have the same motivation to report it again, as they have already gotten paid. This is not foolproof but has worked.

  Good Luck!

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Collections

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I am NOT a professional, but I had 2 items in collections.  At first, they told me they couldn't take it off, but I called again and said the ONLY way I would pay it off - in full - was if I received a "Pay For Delete" letter from them. They did, I paid, and both were taken off my report.  My credit score went up DRAMATICALLY when they were taken off.  Being as Collection Agencies only pay pennies on the dollar for these "debt lists," I would have to think that ANY money they receive would be pure profit.  And a nice profit at that.  Best of luck to you!!!!

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