Credit Score Question

I'd call the electric company just to make sure. If it's a real debt collector, you'd want to pay them, since they would have bought the debt from the electric company - which means you no longer owe the electric company. If it's just some hokey shit to scare you into paying, then it doesn't matter who you pay.

alavaz said:

I'd call the electric company just to make sure. If it's a real debt collector, you'd want to pay them, since they would have bought the debt from the electric company - which means you no longer owe the electric company. If it's just some hokey shit to scare you into paying, then it doesn't matter who you pay.

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Yeah, double check with the Utility. I had the same issue almost with my gas bill, and they told me if I payed within a certain time they'd be able to close the claim with the debt collector without it showing up on a credit report.

Thanks for the suggestions. I paid the electric company online directly and then called to confirm that my account was in good standing. They said it was, and they said that they would contact the creditor to let them know that the debt had been paid.

Would it be a good idea to send a letter to the debt collection agency with written verification that my account has been paid, such as a printout of my account statement? I guess I'm just paranoid that the electric company won't actually close the debt or whatever and I'll keep getting harassed or have my credit score affected for a debt that's paid up.

It'll stay on there for 7 years. Them doing that is making sure it still appears

I don't think your credit suffered 40 dings from it though

Every month you don't pay is another month you're in delinquency. If folding your arms indignantly was a valid credit management strategy what would be the point of credit reporting at all?

Yeah but once it's in collections, which is what I'm assuming happens, they can't keep hitting you for it. It'll appear on your credit report for 7 years but that's about it. If it's big enough they could sue you (happened to a friend)

I agree that ignoring that isn't a valid strategy. Why not just write a certified letter to that company asking for a pay for delete?

Pay to delete does work, but the agency has the final say if they're willing to do that for you. Usually not I think, but if it's been years who knows

I doubt his credit score keeps dropping, it's just a fixture on the report for 7 years. After 90 days you're considered a risk as a repeat offender and after 120 you usually get sent to collections, after that the credit score shouldn't drop further but it's going to be a major, major drop.

I had to dispute an erroneous delinquent claim from AmEx earlier this year. That one account was reported as 60 days late and it dropped my credit score by 100 points until I got it sorted out.

I had an erroneous Sprint charge that showed up when I applied for my mortgage. Wrote them to verify the debt and it mysteriously disappeared

If you pay it you can begin to repair your credit now. If you wanna wait another 4 years for that process to begin is up to you. Planning on making any major purchases like a house in that time?

Ask for proof of debt and check out the statute of limitations in your state. Could be the debt is out of sol. They for sure shouldn't be reporting it as new every month.

Send the collection agency a letter asking for proof of the debt. You can find many form letters online for that. Use certified mail to make sure they get it The collection agency will have 30 days to respond.

You can also open disputes with the three credit agencies online. But you might wait until you get a response from the collection agency.

Are you getting that credit report from a place like credit karma or does your actual credit report look like this?

Also find out the statute of limitations in the state where the debt occurred. If it is past the statute, then it shouldn't be reported to the credit bureaus.