paying back debt..

[NEWYORKJETS000]

so i had a credit card with household bank that got turned over to a 3rd party collection agency. there called "portfolio recovery" i have heard bad things about them... the debt is only 297$. has anyone ever dealt with these people before? whats the best way to pay them? someone told me to send them a dispute letter and then another letter after that...

 

[OCGuy]

I would pay them with USD. It generally works best.


Are you serious?

 

[kami333]

Don't contact them and don't pay them before you do some research. The following sites are good a good place to start:

www.creditboards.com
www.Rdebtorboards.com


If it has already gone to collections and is already on your credit report then the damage is already done, the next step is to figure out the best way to mitigate it.

 

[OCGuy]

What ever you do, dont listen to the guy above's vice if you plan on using your credit for something in the next 4 years or so.

If you dont plan on financing anything, well then I guess it doesnt really matter how long that collection sits there. In that case, you can just ignore it.

The fact that your CC went to collection means you probably have some 90 day+ lates on your credit now anyway.

 

[spaceman]

seems like they buy junk debt
past statute
from a quick google
ignore em

 

[Texashiker]

whats the best way to pay them?

Send them $297 in monopoly money, and wait for a response.

 

[dpodblood]

What is it you would be disputing? Do you owe them money or not?

 

[kami333]

What ever you do, dont listen to the guy above's vice if you plan on using your credit for something in the next 4 years or so.

If you dont plan on financing anything, well then I guess it doesnt really matter how long that collection sits there. In that case, you can just ignore it.

The fact that your CC went to collection means you probably have some 90 day+ lates on your credit now anyway.

A paid collection is just as bad (credit score wise) as an unpaid collection, it can be worse since paying the collections will reset the statute of limitations on the debt (all moral implications aside). The only time paid/unpaid makes a difference is when you have actual humans looking at your credit report (ie mortgage or student loans) where they will stipulate that you can't have any outstanding collections.

I should have worded my post better, the best thing to do is not contact or pay them until you read creditboards or debtorboards and figure out your plan of action. Usually it goes dispute/validate then negotiate a pay for deletion (remove the degoratory off your credit report completely).

 

[OCGuy]

A paid collection is just as bad (credit score wise) as an unpaid collection, it's usually worse since paying the collections will reset the 7year reporting time limit and it will stay on your credit report for that much longer. The only time paid/unpaid makes a difference is when you have actual humans looking at your credit report (ie mortgage or student loans) where they will stipulate that you can't have any outstanding collections.

I should have worded my post better, the best thing to do is not contact or pay them until you read creditboards or debtorboards and figure out your plan of action. Usually it goes dispute/validate then negotiate a pay for deletion (remove the degoratory off your credit report completely).

Not true at all. Paying collections does help your credit score. I look at 5-10 credit reports a day.

Also, you cannot negotiate with them to delete them anymore, unless they are willing to tell the bureaus the whole thing was a mistake. If you actually owe the money, they cannot be removed.

On a side note, people like you are why this country is in a mess. If the OP owed $200 and couldnt pay it back (what is the payment on that, $10?), then he deserves whatever he gets.

 

[highland145]

The obligatory, pay your bills. If you owe it pay it.


Had some idiot skip out on me for $35, 3/2009. Come on, $35? Got a call from another company, yesterday, he's trying to get a loan and they want to know what the problem was. With interest, he now owes me $88.01. The 2nd company is sending me a check. Small beans but they are my beans.

 

[joesmoke]

jesus dude 297? i was set to come in here and say cancel cable/internet/sell the car til its done... but 297?

are you sure you owe it? pay it. theyll probably accept any form of payment but otter pelts.

/thread

 

[CPA]

Under no circumstances do you hand over your checking or credit card info to them over the phone. If they call, tell them to send you a bill and you will pay it by mail.

 

[Dulanic]

So much crazy info on here. People make mistakes, I am guessing this guy is a kid. As for people who say "just pay it! you owe it!" don't listen to them. Take a previous recommendation and go to creditboards.com. The problem is with these credit collection companies... they don't care one bit. They paid pennies on the dollar for your debt and they will threaten lie and cheat to get your money. A lot of the times they will not even show it as you paying even if you have.

This is why you need to check those boards, you need it IN WRITING to prove you paid for this and so you can dispute your credit report if they fail to update the payment status.

People make mistakes and I learned the hard way, when I was young I did the same crap. Now I am the complete opposite and own a home, have credit cards etc... and I pay everything on time.

 

[highland145]

So much crazy info on here. People make mistakes, I am guessing this guy is a kid. As for people who say "just pay it! you owe it!" don't listen to them. Take a previous recommendation and go to creditboards.com. The problem is with these credit collection companies... they don't care one bit. They paid pennies on the dollar for your debt and they will threaten lie and cheat to get your money. A lot of the times they will not even show it as you paying even if you have.

This is why you need to check those boards, you need it IN WRITING to prove you paid for this and so you can dispute your credit report if they fail to update the payment status.

People make mistakes and I learned the hard way, when I was young I did the same crap. Now I am the complete opposite and own a home, have credit cards etc... and I pay everything on time.

Other than the bolded, I agree. Paying your way is a sign of maturity that you, like most of us, have learned. How do you do that? You suffer from mistakes like not paying your debts. Hence, people like me saying, "Pay your bills." That's the clif note version to your credit.

The idiot that owes me $35 was a business risk. Looks like I'll come out ahead on that one.

Edit for the bolded: If you owe it, pay it.

 

[drebo]

Write them a letter asking for verification. Ask them to provide you with their contract with your debtor proving that they are allowed to be assigned or have actually purchased this debt.

Once they do that, ask for a paper bill (and reduced payment) and then mail them a check.

 

[nanette1985]

To clarify, you don't morally owe "portfolio recovery" anything. You did owe your original creditor. The game has changed.

They purchased your debt from your original creditor. Your original creditor should have been paid by you, and that's your fault - but don't let THAT guilt transfer over to the next debt collector.

Portfolio Recovery has purchased information: your name, the name of who you owe, and a bunch of other stuff. Portfolio Recovery wants to get money out of you, and they don't care how.

There is a huge difference between paying off your original creditor - the person you actually owed the money to - and paying a third party debt collector. PLEASE go to creditboards or someplace like that to learn how it works.

Good luck.

 

[Vic Vega]

Personally, I would call them today and offer to settle the debt for $100 USD.

When they agree (and they will) tell them to send you, in writing, an offer to settle the debt in full for $100. Once you have received the offer in writing you will overnight them a money order for the $100.

 

[paperfist]

Not true at all. Paying collections does help your credit score. I look at 5-10 credit reports a day.

Also, you cannot negotiate with them to delete them anymore, unless they are willing to tell the bureaus the whole thing was a mistake. If you actually owe the money, they cannot be removed.

On a side note, people like you are why this country is in a mess. If the OP owed $200 and couldnt pay it back (what is the payment on that, $10?), then he deserves whatever he gets.

So it is possible to have them remove a bad mark off your report if you negotiate it? I never understood why they left a bad mark on your report if you paid off the debt one way or another.

 

[OCGuy]

So it is possible to have them remove a bad mark off your report if you negotiate it? I never understood why they left a bad mark on your report if you paid off the debt one way or another.

So future creditors can see that you defaulted on a contract, and either refuse to offer your credit, or charge you more interest because you are a higher risk. That is the whole point of a credit report.

 

[kami333]

Not true at all. Paying collections does help your credit score. I look at 5-10 credit reports a day.

Also, you cannot negotiate with them to delete them anymore, unless they are willing to tell the bureaus the whole thing was a mistake. If you actually owe the money, they cannot be removed.

On a side note, people like you are why this country is in a mess. If the OP owed $200 and couldnt pay it back (what is the payment on that, $10?), then he deserves whatever he gets.

No offense OCGuy, but you've been saying that for a couple of years now and it just doesn't match up to my experience (not for me but from helping other people, I used to volunteer at a non-profit credit counseling agency) and what I read on creditboards/debtorboards.

Here's a good example:
http://creditboards.com/forums/index.php?showtopic=461377
http://creditboards.com/forums/index.php?showtopic=453957

Will all CAs do it? No, and even at the same company it can depend on who you talk to and what kind of mood they are in. But you never know until you try. They are under no obligation to offer a pay for delete but many do since it's an incentive to pay. The CRAs have an obligation to report truthfully what is reported to them by the creditors as long as it is valid, nothing more nothing less.

At the end of the day, it's just business. I take the position of free agency, people should have all the information to make their own choice even if I disagree with them.

 

[OCGuy]

No offense OCGuy, but you've been saying that for a couple of years now and it just doesn't match up to my experience (not for me but from helping other people, I used to volunteer at a non-profit credit counseling agency) and what I read on creditboards/debtorboards.

Here's a good example:
http://creditboards.com/forums/index.php?showtopic=461377
http://creditboards.com/forums/index.php?showtopic=453957

Will all CAs do it? No, and even at the same company it can depend on who you talk to and what kind of mood they are in. But you never know until you try. They are under no obligation to offer a pay for delete but many do since it's an incentive to pay. The CRAs have an obligation to report truthfully what is reported to them by the creditors as long as it is valid, nothing more nothing less.

At the end of the day, it's just business. I take the position of free agency, people should have all the information to make their own choice even if I disagree with them.

I've been on those boards, and know what happens. The bureaus only want them to remove collections that are a mistake. So the way the collection companies do that is the same way they do it if they can't prove you owe the money.

I am aware that collection companies will do this in order to get some form of payment, but that is not how it is supposed to be done.

I have heard there are plans to make it more difficult to remove accurate collections from your credit, I am just not sure how they can do this in practice since they rely on the debt company to report correctly.

 

[kami333]

I've been on those boards, and know what happens. The bureaus only want them to remove collections that are a mistake. So the way the collection companies do that is the same way they do it if they can't prove you owe the money.

I am aware that collection companies will do this in order to get some form of payment, but that is not how it is supposed to be done.

I have heard there are plans to make it more difficult to remove accurate collections from your credit, I am just not sure how they can do this in practice since they rely on the debt company to report correctly.

So basically you are upset that people (aka the deadbeats) are exploiting a loophole even though it's legal?

 

[OCGuy]

So basically you are upset that they are exploiting a loophole even though it's legal?

Creditors being fooled to giving irresponsible people more credit because they cannot correctly qualify a borrower should make everyone upset. It raises interest rates and fees for all of us.

 

[highland145]

So basically you are upset that people (aka the deadbeats) are exploiting a loophole even though it's legal?

Creditors being fooled to giving irresponsible people more credit because they cannot correctly qualify a borrower should make everyone upset. It raises interest rates and fees for all of us.

Might cause a housing bubble.:sneaky:

Yep. F-up your credit, file a police report claiming identity theft, by law you're allowed to cherry pick the "erroneous" information from the bureaus. Seen it first hand.

Where there is a will, there is a way.

So, 35%, FTW.

 

[BrokenVisage]

Picture of a spider.