Question:
I have a $94 debt that has gone to a collection agency. This item has
shown up on my credit report. I was not aware (or forgot about) this
debt until this week. I will be happy to pay the $94 IF I can get
this item removed from my credit report.
Can I make a deal with the collection agency where they guarntee to
clean my credit reports of this item if I pay the collection agency in
full? How should I go about such an arrangement? Should I get
something in writing from them? Thanks.
Answer:
NEVER deal with a collection agency other than to tell them not to contact
you anymore about a debt that you do NOT owe. (whether you owe it or not)
If you want to make good on the debt, deal directly with whoever is owed the
money. After the debt is paid (get a receipt), then dispute the debt with
the credit reporting agency. Since the debt no longer exists, it can't be
confirmed and should be removed
-Never, ever, ever make a payment to a collection agency. Always directly to the
company you owe the money to.
There is no way the debt record will be erased. It's a historical fact and you
will have to live with it. The best you can do is get an annotation that the
debt was eventually paid. You can also request that an explanatory note be added
to your file. Keep in mind that with the preponderance of automated scoring
systems, the value of a note is going to be very limited.
Eventually, after 7-10 years the debt record may drop off any reports.
