Debt in Collections

Discussion in 'Horn Depot' started by RyanUTAustin, Dec 12, 2007.

  1. RyanUTAustin

    RyanUTAustin 1,000+ Posts

    I have some medical bills from college that I couldn't pay and they have gone on my credit report.

    I want to pay them off and was seeing about possibly making a deal with the collection companies.

    How does that work?
    Should I just call them up and say, "I really want to get this taken care of, how about I mail you a check for xxxx and we call it a deal?"

    Will that work? I have heard people have done this before and wanted to know what you guys think will be best.

    How low below the amount should I say? I was thinking 20% off what I owe.
     
  2. Hellraiser97

    Hellraiser97 500+ Posts

    How long has it been?

    If you are approaching the 7 years, you may be better off just dealing with the credit ding until it drops. My understanding that as soon as you make the account active again (which can mean simply contacting the debt holder), the 7 year period starts over again.

    So, if you settle with these guys for anything less, from that date for 7 years, you will have the dreaded "SETTLEMENT ACCEPTED" on your credit report.

    If you feel like your really need to settle it, I would not pay them a dime until they agree, in writing, to remove any reference of the debt from all three credit bureaus once the terms of the settlement are fulfilled.
     
  3. NCAAFBALLROX

    NCAAFBALLROX 1,000+ Posts

    When a debt has gone into collections, usually what happens is a collection co. (agency) buys an account from the co. you owe @ a reduced rate. I don't know the actual average figure, but let's say it's 70%. Then they own the debt & the original co. is no longer part of the equation; it is probably the original co. that has you listed negatively.

    If you DO negotiate a settlement, your first question needs to be "if I pay this off @ a lowered figure, will this positively, negatively or not at all be reflected on my credit score?"

    PS: You can always ask them if they'll accept Ace's PhotoShopped work as payment on your acct.

    [​IMG][​IMG][​IMG][​IMG][​IMG]
     
  4. RyanUTAustin

    RyanUTAustin 1,000+ Posts

    It says collection as of July 2006 on my credit report from Experian.

    Then it says that it is scheduled to continue on record until Jul 2012.

    Are you saying that after 7 years I wont have to pay this?
    But I will have it on my record forever?
     
  5. RyanUTAustin

    RyanUTAustin 1,000+ Posts


     
  6. Hellraiser97

    Hellraiser97 500+ Posts


     
  7. RyanUTAustin

    RyanUTAustin 1,000+ Posts


     
  8. RyanUTAustin

    RyanUTAustin 1,000+ Posts


     
  9. Hellraiser97

    Hellraiser97 500+ Posts

    it takes 7 years before they cannot report it anymore. That doesn't mean it HAS to be reported for that period. If you can get them to agree (in writing) to remove any mention of it if you pay, than they can remove it.
     
  10. Ave. H Horn

    Ave. H Horn 100+ Posts

    If you are going to call the collections company to negotiate- don't. Try to do it in writing- via certified mail. Or if you must, you will want to ask them this first and foremost: does your company own this debt or just servicing it? If they own it then they can & most likely will settle it for a reduced amount. But as others have stated, they probably will show "Settled" or Settled for less than original amount" on your credit report. Also, be aware, they can still sell that deficiency to another company to collect on. Especially if they note that it is settled for less than original amount.
    The best solution would be to pay the entire amount to the OWNER of the debt, by requesting a 30 day pay-off, which will probably include interest, penalties, collection costs, etc. This figure should be obtained in writing and you should pay it via certified funds- so you can track it. You might also want to include in your letter the parameters of how they will report it, preferably "PAID" or "paid in full". And you may even want to request a letter be sent to you stating the debt was paid in full.
    Hope this helps.
     
  11. Tyler Durden

    Tyler Durden 500+ Posts


     
  12. pasotex

    pasotex 2,500+ Posts

    how much is the debt?

    I usually offer to pay the medicare amount
     
  13. Ave. H Horn

    Ave. H Horn 100+ Posts


     
  14. RyanUTAustin

    RyanUTAustin 1,000+ Posts

    So you're saying for instance:

    I discuss paying off the debt with the agency.

    The original debt is $500 but we come to an amount of $350 to call it settled.

    I should ask for them to send me a letter that is has been paid in full.

    This will eliminate the chance of them re-selling the $150 to another institution?
     
  15. sawbonz

    sawbonz 500+ Posts

    I would not deal with the collection agency. f**k them. Call whomever it is you actually owe the money to and work out a payment plan with them. I've had this happen to me twice, both times medical bills I never received were sent to collections. Once in college, once in med school. They were both small balances, basically whatever was due after insurance, so they were no big deal. If yours is a large balance, I would second what a poster above said about negotiating a lower rate eg what medicare would allow.
     
  16. William Cannon

    William Cannon 250+ Posts


     
  17. hornian

    hornian 1,000+ Posts

    I thought medical bills couldn't be reported on your credit?
     
  18. ACuriae

    ACuriae 500+ Posts


     
  19. goofyboy

    goofyboy 100+ Posts

    go here -The Link . there is more information on that site relating to credit than anywhere on the web. read, read, and read some more before you make any kind of move. good luck. i have increased my credit scores due to the information on that site.
     

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