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ChoochMooch

Settling CC And Loan Outstanding Debt For A Fraction Offers Incoming...

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Not a newb to credit scores, but newb to this board, hello all...

 

I'm sure i'm not the only one that has gotten those offers in the mail offering to settle a debt for 1/4 to 1/2 of what is owed.

 

The question comes up of, these offers i've received seem good and all, but they're from 3-4 years ago.  I know ~7 years is when stuff starts falling off, so granted I won't need an immediate hike in my score anytime soon, would it make more sense to continue to refuse to pay any of them, and be better off just doing the wait game for them to fall off in a few years?

 

Thoughts?

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13 hours ago, ChoochMooch said:

Not a newb to credit scores, but newb to this board, hello all...

 

I'm sure i'm not the only one that has gotten those offers in the mail offering to settle a debt for 1/4 to 1/2 of what is owed.

 

The question comes up of, these offers i've received seem good and all, but they're from 3-4 years ago.  I know ~7 years is when stuff starts falling off, so granted I won't need an immediate hike in my score anytime soon, would it make more sense to continue to refuse to pay any of them, and be better off just doing the wait game for them to fall off in a few years?

 

Thoughts?

Paying an offer like that on a collection account will not remove it from your credit report nor will it increase your scores. It will show as paid for less than the amount (settled) but the collection account will stay on your credit report for 7 years. Either way, you want it gone if you are concerned about your reports.

 

This board is full of approaches people have taken to get these removed. Read about how people approach it by using the search bar using the word "deleted" or similar. Also look at the pinned topics for things that apply to you.

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18 minutes ago, ChoochMooch said:

Thanks for the response, I understand now, you are very helpful.  

 

2nd question, thoughts on the credit service; Lexington Law?

I am no expert and am about to start this same battle but am waiting out SOL dates that are coming up soon.  How large are these collections?  Do you know the DOFD (date of first delinquency) from your credit reports?  It is a good idea to know what the exact DOFD is and what your states SOL (statue of limitations) is if any of these are large $ figures. 

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Yeah, I know them all, well they're a couple clicks away.

 

There are roughly 1500 combined spread throughout 3 personal credit cards past due if not in collections.

 

And 800 due for a past medical bill.

 

All are from 3-4 years ago.

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Typically you can do what Lexington Law does, without the fees.  Also, when a "credit repair service" gets involved, many times, the items become stuck to your report, being unable to be removed prior to the 7 year reporting.

 

As for settling these debts, one item to consider is what is the SOL (Statute of Limitations) for your state?  In other words, can you still be sued for these debts?

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15 minutes ago, Glacier said:

Typically you can do what Lexington Law does, without the fees.  Also, when a "credit repair service" gets involved, many times, the items become stuck to your report, being unable to be removed prior to the 7 year reporting.

 

As for settling these debts, one item to consider is what is the SOL (Statute of Limitations) for your state?  In other words, can you still be sued for these debts?

 


South Carolina, I'm almost sure that I am not at the threshold of being sued.

 

Probably.

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He's saying the Statute of Limitations (length of time you can be sued) is 3 years from the Date of First Delinquency. Once you figure that out, you can determine how to proceed.

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On 11/28/2018 at 8:00 AM, ChoochMooch said:

I'm gonna need an interpretation, please.

 

😀

I believe it mean 3 years from your last payment. and the clock can reset if a payment is received afterward. So let say you stop making payment today, wait 1 year, then make another payment. the clock would then reset from that 1 year mark.

 

Correct me if am wrong.

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3 hours ago, fixmeup said:

I believe it mean 3 years from your last payment. and the clock can reset if a payment is received afterward. So let say you stop making payment today, wait 1 year, then make another payment. the clock would then reset from that 1 year mark.

 

Correct me if am wrong.

In SOME jurisdictions, the clock will not reset except and unless the payment brings the account current. 

 

You HAVE to know the law for the jurisdiction(s) in question!

 

Not all discount offers are from purchasers.  Some are still related to the original creditor, just that they come from whomever the paper has been placed on a contingency basis.  Whether it makes sense to resolve the matter financially is a case-by-case situation and will also depend on the negotiating abilities of the individual. 

 

Using a 'service' like Lexington or any similar company is all but guaranteed to screw your reports up.  They tend to dispute EVERYTHING and they do it in a crappy crap crap manner that cements derogatory information to the reports while ALSO costing GOOD tradelines.  NOBODY will have an interest in your report the way YOU do.  Learn the process and proceed accordingly...

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On 11/28/2018 at 7:09 AM, legaleagle2012 said:

Sol is three years from the DOFD. Figure it out.

No.  SC is 3 years from the date of last payment. 

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