Thinking about paying a collection account? Your credit scores may not improve unless you get the collection account deleted with a pay for delete agreement.
Your debt may be uncollectible. Review your State’s Statute of Limitations on how long you can be sued for an unpaid debt.
The statute of limitations is the time period set by law in which someone can sue you. Each State sets their individual statute of limitations on debt. A creditor or bill collector cannot sue you for payment of a debt after the statute of limitations period has run.
I got an interesting question from a consumer in 2014 regarding an unpaid payday loan. The consumer had taken out a payday loan but unfortunately lost their job and did not have the money in their bank account when it was time to repay the loan. This led to fees being added by not only…
Collection agencies are not original creditors and should not be reporting monthly late payments on your credit report, you have no legal account with a debt collector that requires monthly reporting of late payments.
The dreaded move-out date arrives and the one thing on your mind is the security deposit. What happens when you don’t get the security deposit back plus the landlord sends a balance to a collection agency that reports it on your credit files.
The best approach in dealing with a debt collector is to stay calm, stay off the phone and know your rights.
Even though a collection agency cannot report a negative account beyond 7 years, they can still pursue you for an unpaid debt.
Once a collection account lands on your credit reports it can stay for up to 7 years from the date of the original account’s default regardless payment. Paying a collection account does improve credit scores but only under FICO 9 scoring system.