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Question By
fishy47

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nothing has changed in one week but paid off a bill in collection and it dropped 50 points

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Helpful to 23 out of 28 people

You should be careful.

When you pay anything towards a collection, you are not paying the original creditor. You are paying a collection agency who bought the debt for pennies on the dollar. Who in turn, will sell the very same debt to another collection agency. They are not supposed to resell a debt that has been paid, but it happens. If you paid them with a check, make a copy and send it to the credit reporting agencies asking them to remove the record from your credit history. Check your credit reports and verifythat this record has, in fact, been removed. As a last resort, threaten (and follow up on that threat) to report them to the Free trade commision and inform them that they are in violation of the Fair Credit Reporting Act. They can be fined or lose their licence to conduct business.

3 Contributions
19 People Helped

Never pay off a colletion unless...

Helpful to 9 out of 11 people

...unless you can afford the credit hit. I learned long ago when you pay off a collection it goes against you. Also,when you pay  to a collection company, the company has no obligation to report to the credit bureau. If ever possible, pay directly to the company you owed.

Reply by
maryjoect

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Helpful to 1 out of 2 people

if i pay the company owed directly will the company then in turn report the debt paid? quicker? slower? how long until it's dropped from credit report?   thank you.

Reply by
adanna

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You have to be careful with this. Commercial law typically will not protect you if you submitted payment to the original creditor, IF your account has been sold to a collection agency. If you have been notified that your account has been sold and notified of where/how to submit any subsequent payments, you generally would need to remit payments to that new entity. This is similar to what you'd do if your mortgage loan was sold by the original company. The original company generally will have no further obligation to you. Remitting payment to the original company, in lieu of paying the collection agency is essentially equivalent to not paying. Again, this is general. Some companies do not sell your account, but will maintain it in a different way - have their collections dept, etc. manage your account. Hope this helps.

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the universe does not make sense!!!

Helpful to 3 out of 3 people

So i have not missed a payment in over 4 yrs on a mortgage, home equity loan, and car payment. i have 1 collection on my credit for $383 that i am going to pay in 2 months and i have 1 credit card i got in may which dropped my score by 40 points because my credit age dropped so i get that.  Here is where things get funky my score is a 610, my wife has 13 collections open and about $20,000 in student loans that she pays on time i make 3 times as much money as her but her score is the same as mine.

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removal

I just had to pay off a couple credit cards before I was approved for a home, if you dispute it and say you are no longer liable for it due to paying it off, it should has to be taken off within 30 days by law.

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Negative report

How long does a negative report remain on your credit report?

Reply by
adanna

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0 People Helped

Typically for 7 years with credit card debt. Afterwards, it drops off of your credit report.

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auto loan

Helpful to 0 out of 1 people

I have disputed a car loan for over 3 years now, they still show me owing this bill. it was originally in my husbands name who passed away last year. I was told if I turned the vehicle, I wouldn't owe anything, since the vehicle was in better shape then when I got it. How can I get this off my history? it is showing a negiative report on me.

3 Contributions
19 People Helped
Helpful to 5 out of 5 people

If you return to the finance company, it will show as a repossession.

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