[stretchmark]

I saw this on my dhs credit report today. Does that mean it will go to collections, already has, or what?<br>
There was one that had gone to collection that stated so.

 

[llamalluv]

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<div>Originally Posted by <strong>stretchmark</strong> <a href="/community/forum/post/11010264"><img alt="View Post" class="inlineimg" src="/community/img/forum/go_quote.gif" style="border:0px solid;"></a></div>
<div style="font-style:italic;">I saw this on my dhs credit report today. Does that mean it will go to collections, already has, or what?<br>
There was one that had gone to collection that stated so.</div>
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It means that the creditor doesn't believe they will ever get paid for it. If you happen to have the money (or at least half the money) call them up and make them an offer. Remember to get it in writing and make sure you can trace the payment (money order or cashiers check)

 

[Slabobbin]

I wouldn't bother making an offer. It is going to remain on your credit report regardless.

 

[llamalluv]

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<div>Originally Posted by <strong>Slabobbin</strong> <a href="/community/forum/post/11013424"><img alt="View Post" class="inlineimg" src="/community/img/forum/go_quote.gif" style="border:0px solid;"></a></div>
<div style="font-style:italic;">I wouldn't bother making an offer. It is going to remain on your credit report regardless.</div>
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Settled or Paid looks a lot better than "This person is a deadbeat that doesn't ever pay their bills". If it is never paid, it can remain on the credit report forever. If is it paid, it will fall off after 7 years. I failed calculus, but I'm pretty sure that "7 years" is a shorter period of time than "forever". You can also negotiate to have it removed from the credit report in exchange for payment in full.<br><br>
It's also the right thing to do, if you subscribe to those types of notions.

 

[Slabobbin]

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<div>Originally Posted by <strong>llamalluv</strong> <a href="/community/forum/post/11013557"><img alt="View Post" class="inlineimg" src="/community/img/forum/go_quote.gif" style="border:0px solid;"></a></div>
<div style="font-style:italic;">Settled or Paid looks a lot better than "This person is a deadbeat that doesn't ever pay their bills". If it is never paid, it can remain on the credit report forever. If is it paid, it will fall off after 7 years. I failed calculus, but I'm pretty sure that "7 years" is a shorter period of time than "forever". You can also negotiate to have it removed from the credit report in exchange for payment in full.<br><br>
It's also the right thing to do, if you subscribe to those types of notions.</div>
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Actually, it is off of your credit report in seven years regardless. Sometimes you have to contest it in order to have it removed as they usually aren't too hasty to remove it, but seven years from the date of the last action, it is legally off.<br><br>
And no, I don't really "subscribe to those types of notions" of "the right thing to do" when it comes to credit and those who issue it. There is usually a LOT of gray, it is very rarely black and white. I have seen a fifty dollar unpaid bill turn into well over a thousand dollars after unethical fees, etc. are added.<br><br>
By the time it shows "charged off" it has usually been sold to the bottom feeding collection agencies. The company has tax lawyers who file the taxes and write what was unpaid off as a loss. They are then able to subtract it from what they owe in taxes (it isn't exactly that simple but that is the jist of it).

 

[llamalluv]

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<div>Originally Posted by <strong>Slabobbin</strong> <a href="/community/forum/post/11013788"><img alt="View Post" class="inlineimg" src="/community/img/forum/go_quote.gif" style="border:0px solid;"></a></div>
<div style="font-style:italic;">Actually, it is off of your credit report in seven years regardless. Sometimes you have to contest it in order to have it removed as they usually aren't too hasty to remove it, but seven years from the date of the last action, it is legally off.</div>
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And what if they get sued? Then they lose the option to work out something, and wind up with a judgment against their paychecks, liens against their home, etc, and something much worse than "we were late, but we made good" on their credit report.<br><br>
And 7 years is a much longer time than 3 years, which is when old PAID bad debt stops having such a strong effect on the credit score.

 

[Slabobbin]

If they get sued it depends on if they have anything or not. In my case, I don't have a thing so they can't really take anything or put a lein against anything. I would rather chance it than pay thousands in unfair, unethical fees and interest. It would be different if it was actually money paid that was money owed for items purchased...but usually it isn't. Usually that is only a very small part of what they want you to pay. She asked for advice, we both gave it, we just have a different opinion. No harm. Peace. <img alt="" class="inlineimg" src="http://www.mothering.com/discussions/images/smilies/smile.gif" style="border:0px solid;" title="smile">

 

[lalaland42]

To address the OP, go over to the creditboards.com forums and ask about it there. Rather than calling (don't call) and negotiating a settlement, I would first try to establish whether or not the debt is your DH's, if the amount is correct, if the company that claims to own it really can collect... If all of these come back and your DH does owe the debt, he can write them a letter offering to settle in exchange for removing it from his credit report. Again, this info is detailed over at creditboards.com.<br><br>
To the PP and the suing scare tactics, it depends on the statute of limitations in the OP's state. Companies trying to collect credit card debt in Texas (for example) only have 4 years to sue. True, one should pay their debts but life rarely is that simple, especially when it comes to collection agencies.

 

[stretchmark]

Thanks for the info all and the diversity of opinions.<br><br>
We rarely get credit reports but I thought I better get one today for both of us. I think we somehow missed a small credit card (under 300) don't even know from where or whom but someone has been contacting his mother all day every day and I think they are hounding about it because the economic stimulus is coming in soon and creditors are hoping past due accounts will use it to pay up. I need to check for validation though first.<br><br><br>
I had a 30$ charge on mine that was from a 2003 doctor that ended up giving me a refund when they realized they had been wrongly billing me and reporting me as past due. I didn't even know it was on there.<br><br><br>
I will go over to those credit boards. Thanks!

 

[lalaland42]

If one of the collections was the doctor's office error, they can simply recall the debt and it will be removed from your credit report immediately. DH had a collection from Qwest that was their fault <img alt="" class="inlineimg" src="http://www.mothering.com/discussions/images/smilies/angry.gif" style="border:0px solid;" title="angry"> and after a couple of phone calls and faxes, they recalled it from the collection agency. It was immediately removed from his credit report.

 

[seap3]

There have been some truth's and some inaccuracies previously posted here.<br><br>
-The debt will remain on the credit report for 7 yrs - regardless of whether it's paid or not.<br><br>
-They may or may not be able to sue. It depends on your states statutes of limitations. This is different from the 7 yr reporting allowed on credit reports. Most states have a 4-6 yr sol for obtaining a judgement.<br><br>
-Paid will look better with a future creditor/employer who is doing a manual review of your credit report. Your FICO score won't improve though if it's paid - or if it does, it's a negligable amount.<br><br>
-It could still go to collections or be sold to a junk debt buyer, who could also place a tradeline for this charge off on the credit report. The original creditor can place a tradeline, and ONE collection agency can place a tradeline. But if that collection agency then sells the account to another, then only the oc(original creditor) and one ca can report.<br><br>
So if you are worried about this going to collections or getting a judgement, then I would try to make payment arrangements. Only do this in writing. DO NOT CALL!!! Check out creditboards like the pp said.<br><br>
But creditboards can be confusing for newbies, so here is a quick list of what to do:<br>
1. Send a letter requesting validation (not verification) to them if it's a collection agency. If it's the original creditor, they do not legally have to validate.<br>
2. If it's the OC, send a letter offereing a settlement or full payment in exchange for a 'pay for delete' from the credit report. This probably won't work with an OC, but it's worth a shot.<br>
3. If they refuse the PFD (pay for delete), then just offer a settlement. They may or may not take this.<br>
4. If all else fails, then pay the amount due to the original creditor.<br><br>
I guess based on your post about a charge off, that I'm mostly assuming it's an original creditor reporting. They are not covered under the Fair Debt Collection Practices Act, but 3rd party collectors are. If a 3rd party debt collector fails to validate after you have sent a dispute letter, then they need to stop both collection and reporting activities. Some will give up immediatley upon recieving the dispute letter, and some will be tougher.<br><br>
I also agree with the pp who said many of these companies have predatory practices and tack on all kinds of fees for small original amounts of credit. I had a cc from when I was 18 with a $200 credit limit. They ended up making the amount due over $1400!! I think that is just crazy, and I feel no guilt for not sending them $1400. I would, however, have paid them the original amount due with a fair interest rate tacked on. They don't like that though, because then they can't write off $1400 on their taxes.

 

[seap3]

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<div class="smallfont" style="margin-bottom:2px;">Quote:</div>
<table border="0" cellpadding="6" cellspacing="0" width="99%"><tr><td class="alt2" style="border:1px inset;">
<div>Originally Posted by <strong>stretchmark</strong> <a href="/community/forum/post/11014764"><img alt="View Post" class="inlineimg" src="/community/img/forum/go_quote.gif" style="border:0px solid;"></a></div>
<div style="font-style:italic;">Thanks for the info all and the diversity of opinions.<br><br>
We rarely get credit reports but I thought I better get one today for both of us. I think we somehow missed a small credit card (under 300) don't even know from where or whom but someone has been contacting his mother all day every day and I think they are hounding about it because the economic stimulus is coming in soon and creditors are hoping past due accounts will use it to pay up. I need to check for validation though first.<br><br><br>
I had a 30$ charge on mine that was from a 2003 doctor that ended up giving me a refund when they realized they had been wrongly billing me and reporting me as past due. I didn't even know it was on there.<br><br><br>
I will go over to those credit boards. Thanks!</div>
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You can dispute the doctors bill with the credit reporting agencies. I'm guessing since the doctors office already knows it was a mistake, they will not verify it, and it will be deleted.<br><br>
A collection agency cannot keep calling a 3rd party, other than to obtain location information. They cannot reveal anything about trying to collect a debt. If you want them to stop calling your mom, just let your mom give them your information, and as soon as they contact you, send them a cease and desist letter. If they continue to call your mom after they know your contact info, that is a violation of the FDCPA, and they can be sued. The cease and desist letter can be limited, which means they can only contact you by mail. At least then you would know who they were and could deal with them. That's better than wondering about who this mystery caller is. I would be embarrassed if a collection agency was calling family members, and that is what they count on.