Whats up everyone, Just wanted the sl's homiez opinion about some credit/debt collection ?'s
My homegirl has this Debt collection agency calling her like mad crasy, I guess it was a credit card for a jewlery/dept store? not sure, but anyways she was telling me that it was from like almost 7 years ago, she came to me and asked me if she should take care of the matter and I really wasnt sure what to tell her, I have always been pretty good about my bills and wasnt really sure how the whole collection process works for those type of credit cards, I know like if you dont make your car note, bye bye car, and If you dont make your mortgage payment, bye bye house.
I figured Id post this to kinda help her with some adivce.......
See she has a new car now, and a home that she is buying and has a mortgage out on her house so her credit isnt to bad, but this company continues to call her and what I told her was, that if I was her I really wouldnt worry about it because it is so old, and I would only assume that if she was to pay she would have to pay the balance off in full, because I would think that if she started to make payment that it could very well hurt her credit score by reactivating that account and it being deliquent already? not sure though.

What would you all do in this situation>?

pay it?
not worry about it?

I honestly dont think she should pay it because it is so old, and If im not mistaken after 7 years or something doesnt it just go away?
any advice would be aprreciated, im kinda curious myself.......thanks in advance homiez! sorry for the novel lol.

 

you're right, about reactivating an old account. She needs to pay it off in full, because they can get a lean against her car or house(most likely). If it was a debt from a store that's one thing, but a credit card she's gonna have to pay. Best thing to do, once she gets the money, although i'm imagining it's alot, is tell them they can have their money(which she may be able to negoiate a lower payment being it's so old) and say "I want either no report on my credit, or a positive one".

 

I think she said it was like 7 or 800 bills, I told her not to really worry about it but your right about the lean I forget about them lol.

 

it was a jewlery store she said

 

ttt

 

I'd have her call them up, and say, "look, my dad says he'll give me $500 which I can use to pay you if that wipes my bill clean, if not I have to start saving after I pay off my other loans."

an old bill like that, and she should be able to negoiate.

 

if it's that low, they'll just garnish her wages.

 

thats dave, u da man!

 

DANGER DANGER DANGER

I do not see Zales putting a lean on a house. I could be wrong, but that's usually reserved for HOA's and the Tax man, and all HOA's have that in their contract that it's an option. I'll check tho, just in case (work next to a guy who's been in RE for almost 30 years)

Don't do this ever. It's only marginally better than not paying it all. It'll show up on the credit report as: Settled for less than full amount. Not good, not good at all. If it was something like $25k or something, then it's worth it, but don't subtract 50 beacon points for few hundred bucks, it aint worth it.

 

Homie, You are always full of useful 411

 

Ok, it's confirmed by 30 years of real estate experience: Zales et al can not place a lien on your home.

 

sweetness hey dude, this is a lil off topic here but, how is club la vila doin up there?

 

Still bangin. It's not my scene, but the place is packed on a regular, and all the spring break festivities and coroporate scwhag are still parked in front on the beach. I don't think the condo is going to be built for a long time. It was rumored that the place sold in 2005 for $167 mil for a condo project, but they were about 3 years too late to capitlalize. As of now, it's on stall status.

Pineapple ******* seems to be wanting in on the night time action as well. Went there for lunch a few weeks back, and they were building what could only be described as a small club with possible live music options right next to the restaraunt. I'm thinking something more along the lines of Schooners as opposed to La Vela tho.

 

i had things like this.. if it is that old just tell you friend to go with the payoff option. they will take like half of the amount just to get it over with.. i did this with about 3 past bills and my credit is perfict now like i never happened.

 

i dont know about settleing on a 700 account its gonna show your girl setlled for a less amount and that just shows to to me as a loan officer that you might try to settle again in the future i say pay the amount in full it just looks better ,ohh and make shure the collection agency knows all the info from where your girl got the jewelery never give them your info, call the jeweler and make arangements with them first see what collection agency they sent your account to,ohh and i think if your girl was a minor when she bought it it could be dissmissed

 

yeah last time I was there there was mad condos going up, I DJ and I did a set a la vela in 02, I hate it when condos come in man, Pineapple ******* is great! is the tourism still good there? or have the old folks buying condos chased away the scene?

 

I have had a good amount of expreience with this kind of thing (didn't know how credit worked til it was almost too late)

anyway, about paying in full or paying a payoff amount...I have offered payoff amounts and been offered payoff amounts from a number of different creditors and one thing I did and it worked on all of them was to go ahead and accept the pay off amount they offer or offer your own amount and ask that they post to your credit on the next immediate posting date that the account was paid in full and has a 0 balance...and then tell you have a number of other bills to pay so if this offer is not sufficient for them then you will put their bill at the bottom of the stack and give your money to someone else and call them when their turn comes again...they usually don't like this tactic but if you stick to your guns then they usually give in...I was referred to a few manager's that had no problem with the offer

not saying this will work for you but if it's a collection agency that is seperate from and was hired by the creditor then they most likely bought your debt from the jewelry credit co for a percentage of the total amount and are in turn asking you for the total you owe to the creditor...that's why debt collector's are so damn pushy...they're trying to profit from your debt

just my .02 from personal experience...btw, used this method on a bill from a student loan about six months ago (had $1,200 knocked down to $800) and my credit report reads that it was paid in full on the date i paid over the phone...i don't know maybe i'm just lucky

hope your friend get's it all worked ok

 

^ thanks for the 411 dave