Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Report
Profile Image

Question By
SweetMagnoliaBlossom

0 Contributions
0 People Helped
Who owns loan if it just says "placed for collection"? OC or CA?

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
125 Contributions
133 People Helped
Most Helpful Response

If I understand...

Helpful to 1 out of 1 people

If it's been placed for collection, that to me means that the loan (and legal authority to collect) is with a collection agency at this point.  A collection agency is likely to be sending you a letter any day now.   This letter will likely contain language in it to "settle" the debt for less.   

It's in this early stage that you will want to do your bargaining.   Dispute if something doesn't look right.  Keep it general, making the collection agency verify everything.  If the debt is yours, attempt to bargain a "pay for delete", meaning that if you pay this debt, the listing will not show up on your credit reports.  Offer less money than their "settlement" option.  These collection agencies purchase these debts for far less than the balance due.  Most of what they collect is profits.

Get EVERYTHING in writing.  Do not make any payments, or make any agreements over the phone.   Say something like "I'd be prepared to do this.... if you do this first..."

You can also attempt to pay the original creditor, but there won't be a discount, and the best you can hope for is a listing on your credit report that says "paid in full" for 7 years.  This is harmful to your credit for at least 2-3 years.

Good luck!

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.