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Question By
alicefive

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What happens when I pay off a account in collections?
If I pay off an open collection account does it restart the clock? Let's say I owe $100 on an open collections account that has 3 years to run before it drops from my report. If I pay it off completely does it go back on my account for 7 years? Or just stays for the remaining 3 years?

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Nothing change the reportable length for collections paid or not, it goes by Date Of First Delinquency, not by any another date.

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Paying collection might restart the Statute Of Limitations clock, the length of time debt owner can sue you for that debt. That's if you enter a firm payment arrangement with debt collector and later on didn't or stop paying, it can be seem as a brand new contract.  However the "reportable" length would not be affected. The SOL is key factor for me to determine whether or not collection need to be paid, paid collection dosent help much, if any with mine credit scores, unless I am looking for mortgage, paid or not wouldnt make much of difference to my credit profiles. Don't get me wrong, I am not advocating anyone not repay their debt, just that I would rather make it whole to original creditors than collection agencies.

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JohnnyRain127

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And I always forget to mention that in State of NY? Paid collection have shorter reportable length, maybe 5 yreras?. Double check with your State's collection laws.

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