Once a debt is sold to a collection agency you have a chance to settle the debt for a lesser amount, often pennies on the dollar.
It’s not unusual for unpaid debt to change hands but only one debt collector can report on your credit history for the same debt.
A collection agency can continue to update the account on your credit reports up to the date the reporting time has expired.
A pay for delete is a way to negotiate with a collection agency to remove an account from your credit reports in exchange for payment.
Keep your cool with these 17 Tips to Deal with Debt Collectors: Stay calm, stay off the phone, know your rights and request proof of debt.
Strategies to dispute collection accounts include finding errors on your credit report and requesting a deletion.
Your debt may be uncollectible. Review your State’s Statute of Limitations on how long you can be sued for an unpaid debt.
Once a collection account lands on your credit reports it can stay for up to 7 years from the date of the original account’s default regardless payment. Paying a collection account does improve credit scores but only under FICO 9 scoring system.
Re-aging credit accounts causes older negative accounts to look more recent which can ruin your credit score and is a serious violation.