12
Mar
Mar
Is it just so the collection bureau will no longer report it? But I still have to wait until the 7 years is up before the original creditors' claims fall off my credit report?
Answer:
Paying the debt off will prevent it from being sold repeatedly to other collection agencies in the future. If the debt is outside the statute of limitations for collection action you won't be sued for payment, but collectors can still try to collect the debt. It can't be reported on your credit report past 7 years though. Paying an account in collection will not remove it from your report, it should show “paid collection” and zero balance, but the history remains 7 years from date of first late payment.
Some original creditors will negotiate a “pay for delete” arrangement with you, but you must negotiate that before paying, and get it in writing, to have it deleted.
Answer:
That is not how it should work. If the original debt couldn’t be collected then that company sells the debt to a collection agency for pennies on the pound. So you no longer owe the primary but the secondary. Seems like you might be getting screwed. Check with the original creditor to see who is responsible for collection and who the debt lies with. Dont let them mess you about and ask for everything in writing, if the letter are not in your possession within 10 days phone back and again request the documents.The 10days is classed as adequate time to respond, not quite a legality but would hold up in court.
Answer:
Yes, you still have to wait 7 years. You pay off the debt so it will reflect more positively on your credit report.
***It is generally removed seven years after the initial missed payment which led to the delinquency.
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