Charge Off Question
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Posted by BH
(63.217.242.242) on December 03, 2002 at 15:40:39:
My Question: Shortly after graduating from college and before she held permanant employment, my wife defaulted on a credit card. Payments were current for several years and then she was unable to make satisfactory payments to settle the debt. She was then burned (lied to) by a collection agency in the past attempting to collect on the debt. The account was charged off a year ago and we were recently contacted by a third party collector that bought the account. They have offered a settlement but will not guarantee anything in writing.
In your opinion, is it better to pay the third party which does not positively report this payment to her credit report or should she wait the collector out and see whether they file suit? The amount is minimal and shouldn't warrant legal action. We would be willing to attempt to reconcile this if the benefits were obvious to us. Since her credit has been affected negatively we would rather take the hit on her credit record and work on rebuilding her credit. Also, what should we tell the collector if we do not intend to pay the amount? Do we let them know or do we ask them to stop calling? I appreciate your respnonse and have appreciated your website. Any suggestions or ideas are appreciated. -B
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