Collections

Apparently somehow a medical bill was being sent to our old address. We moved 6 years ago, and the doctor’s office has our current address…but somewhere in their system, it was not changed. Anyway, I was clueless about it until a collections agency called wanting payment. I paid it over the phone…and all was settled. Will it affect my credit much?

The exact same thing happened to us. It was for a $72 bill from Urgent Care that was left over from our insurance with the wrong address. I myself was really worried about it as well. If you paid it right away…it will not affect your credit in any way. The collection agencies are the ones that report it to the Bureau, so if you explained what happened and fixed the problem– it will be like it never happened.

Their only motivation is to collect the money and since they did that, they have no reason to take it any further. The agencies start doing low-blows when people ignore their calls or lie to them about payments.

I requested a letter of validation to a collection agency in October. They sent me a copy of my credit application in December. What should I do about the details below?

1. Can they still try to collect this dept?
2. I notice that I did not sign the credit agreement?
3. I don’t believe that all the charges are mine?
4. Can they still sue me?

Their failure to validate within 30 days does not mean they can’t still collect. If the debt is within the Statute of Limitations (SOL) for your state, they can sue and will win a judgment.

You could play games and try to use the lack of signature to get out of the debt, but that might not work. Is this your debt? Try to work out some kind of settlement. You should be able to settle for 25% to 50%, depending on how old the debt is. Get any settlement agreement in writing and don’t give the collector direct access to your bank account.

for a check that bounced even though it was written to the original creditor and not the collections agency?

Also, can the original creditor press charges for a check that bounced after it’s been sold to a collections agency?

Finally, is it legal for a collections company to claim that they are with or affiliated with the original creditor, or part of that company?

Serious answers only please. Answers that don’t relate to the questions or opinions that don’t answer the questions will be reported. Websites with additional info would be appreciated! Thanks!

I am assuming you are in the USA???

A third party collection agency can sue the check writer regarding a bounced check. In my state, they can sue for 3 times the amount of the check or $500 in addition to the original amount, whichever is less.

Generally, checks are not sold to a third party collector. They are turned over to a collection agency so that the original creditor can get it off their books and continue with whatever business they are in. The law generally allows for fees to be added to checks that bounce, usually $30 for the merchant and $30 for the bank. A collection agency will take the fees that would originally go to the original creditor and turn the original amount of the check over to the creditor if the collection agency is able to collect it. If the check writer is sued, then the agency generally takes the damages awarded, plus court fees and costs, and turns over the original amount to the original creditor.

A collection agency may or may not be affiliated with the original creditor, although generally they are not. They are required to say what they are collecting on and who for. They are also required to send a copy of the check that they have in their possession, if it is requested.

If a collection agency or the original creditor sue on an original check, then they are going to win, hands down. The reason is because check is the same as a signed contract. By signing the check, the check writer affirmed the check was good in exchange for funds. If the check comes back as NSF, then the writer did not hold up their end of the deal and is liable.

EDIT the previous two posters are absolutely incorrect. I sue people all the time on behalf of the original creditor. Fact is that the original merchants are not in business to collect on bad checks. It takes time and energy to do that. They turn it over to me so that they don’t have to do it themselves.

Further, no one is going to jail for a bounced check or two. If it’s habitual and obviously fraudulent, THEN it is a criminal matter, otherwise, it’s stricitly civil.

I have a hospital bill that I meant to pay but kept putting in my things to do later pile. I finally took the time to pay it and found out they turned me into a collection agency. I haven’t heard from the collection agency yet but would like to pay my bill, it is under $100. Can I just make my payment to the hospital or do I have to wait until I am contacted by the collection agency?

Call the hospital and ask if you can still pay. If the debt was sold, they’ll likely refuse your payment. If they simply hire a collection agency to collect for them, they’ll accept your payment.

When I was a minor, Guitar World magazine sent me to a Collections Agency that I payed off right away. I was minor then, and now an adult (18) and would like to take that off my record/report/debt/etc.

I would like to call this collections agency and take care of it right away.

I am about ready to report this "Guitar World Magazine"
They seem to have no scruple in making minors believe
that they owe for magazines they didn’t want nor were
legally able to sign a contract for.

Check your credit record… I can guarantee you that there
is no entry for a "collection done for Guitar World Magazine…

I have the feeling that the "collection agency" that contacted
you was just Guitar World Magazine posing as a collection agency…

I think you should tell this story to a lawyer… they might find this
interesting… I think a District Attorney might find it very, very interesting. Make sure to mention that you were a minor when
you were apprehended by this collection agency…

My credit score was near perfect before this and I was reported just once for a small amount of $13. I am desperate and I have no clue what this will mean to me. Please provide some resources if possible!

I have a great credit score… On one service it was 725 on the second service it was 751 and and the third it was 773. When I looked at the difference of what was reported, I found that the 725 had a report of a medical bill for about 50 bucks which was actually paid. There had been a screw up in changing insurance companies and so the doctors office’s collection people reported this and missed removing it when they realized their error.

So, once this was removed, my credit score from that service rose to the 760’s.

Now, anywhere in the 700’s are suppose to be great, but when I went to buy a home, they did ask about this, and it was a hassle. I am sure I would have gotten the loan either way, and maybe I made it more of a hassle than it should have been, but I really dislike having anything questioned when I am going for a Jumbo loan.

I hope this helps.

Someone close to me charged up a huge debt on four credit cards and couldn’t pay them anymore so they decided to just stop paying completely. They were eventually reported to a collection agency. My question..is it possible to still go through one of those agency that help you consolidate your credit debts? Will they still help my friend pay off those debts even after they have been reported to a collections agency??

If you yes…do you know any of these agencies located in San Francisco California??? thank you

If you have to pay someone to help you get rid of your debt. Dont do it.
What they will do is not pay your creditors for months and then try and settle for less. No special skills. They just dont pay.
Save the fees they charge and use it for the debt. You can negotiate this yourself.
Remember, if the company doesnt pay the debt. You, and you alone are still responsible for the debt. Your creditors will sue you and not the company you hire.

So I’ve got a debt of 2999.17, and they sent me a letter offering 35% off if I paid in full (1949.46). I’m sure I can pay even less than the 2 grand, but I don’t want to aim too low at first, because I know it’ll be some sort of haggling situation.

Also, I don’t know where to set my bottom line of what I simply will not pay more than. I really want to clear this up, and I really want to pay as little as possible, but I haven’t dealt with these people much in my life.

Collection agencies typically pay 2 cents on the dollar for collection accounts, or 2%.

Offer 5%, which they will likely refuse. Before starting to work upwards, realize that the person on the phone wants to make as much money off of you as possible, so instead of negotiating the typical way, be prepared to end the call.

Don’t settle on anything until you have talked to at least three different people there over the span of at least a month, and try to be in the 25% - 50% range before settling. Right now, it sounds like you have a long way to go.

i owe them
428.69
this amount i owe them is for a delinquent credit card.
the account is one year old.

Don’t make the mistake of simply cutting a check to whatever collection agency has the debt for the charge-off and assume that your credit rating will be magically restored…Doing so will not remove it from your credit reports. It will simply be updated to a "Paid/settled Charge-Off," which, while slightly better, is still a seriously derogatory item.

If you’re going to pay off old-charged-off debt anyway, then you might as well negotiate the lowest, rock-bottom settlement you can possibly get, being that the negative charge-off notation is going to stay for 7 years on your credit report anyway. Debt collectors buy defaulted debt for pennies on the dollar…Offer them 25%

Get all terms of any settlement deal you reach IN WRITING BEFORE you give them your money. Make multiple copies of your settlement letter and keep in a safe place. Never accept settlement deals over the phone without following up with a written agreement….Without a written agreement the debt collectors will later deny that any settlement was ever made once they get your “settlement” money and will come back demanding more money.

* NEVER, EVER give out your checking account numbers to debt collectors for making payments. Pay only with USPS money orders….photocopy for your permanent records. If they’ve waited months/years for your payment, then they can wait four days for your money order to arrive. Any “deadline” like 5PM to get any payment to them is bogus. Don’t let them bully you into giving them your checking account number.

do you get jail or anything like that ? i know it affects credit report, but how ?

No, you don’t go to jail (thank god, or else my family would be running from the law!)

The collection agency will give you a notice stating that they are in charge of the debt, and will bug you repeatedly in attempts to get you to pay the debt. It helps to record what times they call (if they call really late, you can get them for harrasing you - my mom did that sucessfully once, and they stopped collecting on the debt).
Usually, you can work out a reasonable payment plan with them. They are not evil people, they are just working folks that are trying to do a job.
If you don’t try to pay the debt, it will show up on your credit report, and will hurt you if you try to get a credit card, student loan (sometimes) or house mortgage.
After 7 to 10 years, the debt is taken of your credit report (whether you paid it or not - that’s my ex husbands plan for clearing his credit report- just waiting until it comes off in 7 years)
Hope this helps!