Advise re collection debts

amother

Bisque

Mon, Nov 06 2017, 11:03 pm

I got a letter from a collection agency that I owe $50 for Verizon from 3 years ago. I got a bill once only 3 years ago called up Verizon and straighten it out with them and they told me I'm clear. The problem is that I wanna buy a house very soon and as per the collection agency I can dispute it or pay it and whatever I do it will still be on my credit report. Is it true? I don't mind paying $50 but I really wanna prevent effecting my credit score. Any experience or ideas please share.
Thank you

creditcards

Mon, Nov 06 2017, 11:13 pm

I'm not sure it will be on your credit report. I would ignore the collection letters. Throw them away. They have no proof about anything until you speak to them. Do they even have your social to put it on your credit?
I would check my credit report every year to see if anything wrong is on it. If you find anything that's not supposed to be there you can dispute it then. I had a few times collection letters that I through out and ignored. I never found them on my credit report.

creditcards

Mon, Nov 06 2017, 11:23 pm

amother wrote:

Thanks for your reply they actually had my good info.

What about social security number? That's important.
Just advice for future, I never give doctors my social. Or Verizon or gas and electricity my social. I tell them all I don't have it with me, or don't have one...just incase such a scenario happens. They can send me bills until tomorrow. The utility companies asked me for security deposit because of no social, so I gave them...

Iymnok

Tue, Nov 07 2017, 4:52 am

Have you asked Verizon to remove it from your records on all three bureaus?
If not you can do credit repair. It is a service that removes bad reports and inquiries from your record.
Pm me for a good one with low rates.

creditcards

Tue, Nov 07 2017, 7:03 am

Iymnok wrote:

It not on the credit report yet. So no need to to credit repair. And if you are really concerned it will go onto your credit report it's probably gonna be cheaper to pay the $50 than use a service to repair the credit.
But there are ways of doing it yourself for free. Yes it is a hassle.

doctorima

Tue, Nov 07 2017, 7:09 am

Ignoring debt collection letters is not a good idea, especially if you're in the market for a house. I'm not saying to pay the $50, but it's not worth risking your future mortgage over not resolving it. I would speak to Verizon and try to get it straightened out. You could also speak to a debt collection lawyer or company, but they'll probably charge you more than the $50.

Iymnok

Tue, Nov 07 2017, 7:10 am

A missed or late payment can affect the report. What you see on the free yearly reports is not the actual score that the lending agency looks at. They will look at the actual FAFSA report. Your rates change according to your history and score.
I recommend going to Credit Check Total and signing up for, I think one week free. Get your full report and save it. It will say if that payment is in your history and if there is anything else affecting your score.

imasinger

Tue, Nov 07 2017, 7:26 am

These things work best in writing. You need Verizon to send a letter to the collection agency, with a cc to you, saying that there is no debt. You can show the letters when you apply for a loan, if necessary.

lavenderchimes

Tue, Nov 07 2017, 8:11 am

When you call Verizon, ask to speak to a supervisor right away -- it will save you a lot of time. Be very firm (but, of course, polite.) This is their problem, and they need to fix it. Make sure to block out some time to deal with this -- it might take a while. Hatzlacha!

amother

Bisque

Tue, Nov 07 2017, 8:24 am

Thank you everyone for your replies. To clarify Verizon doesn't want to straighten it out as it's sold already and they have no records. Maybe I should try to pay Verizon the $ 50 and get them to take it off from the collection agency

amother

Bisque

Tue, Nov 07 2017, 8:25 am

lavenderchimes wrote:

I tried that already and didn't get anywhere with them. I called already 3 times Verizon

doctorima

Tue, Nov 07 2017, 9:19 am

At this point, even if you decide to pay, it won't be to Verizon, and that would just be a waste of money. The collection agency purportedly bought the debt from them (for pennies on the dollar), so whatever you pay would go to them. There are very strict legal protections in the US to protect you from fraud in these areas.

Google for a form letter that you can send to the collection agency telling them that you dispute the debt and demanding that they furnish you with written proof of it. Often, this will put a stop to the whole ordeal, although it will take quite a bit of time and inconvenience. Only you can decide if it's worth $50 to you or not.

lavenderchimes

Tue, Nov 07 2017, 10:08 am

amother wrote:

I tried that already and didn't get anywhere with them. I called already 3 times Verizon

Can I ask what went wrong? Did you ask to speak to a supervisor? With things like this, the person who answers the phone can never help you -- you have to go ip the ladder. It took me a while to learn how to "handle" utility companies, and only because I had someone more experiences telling me exactly what to say. Maybe we can help talk you through it.
I wasn't clear before, but I think you need to try imasinger's advice of getting a letter from Verizon -- this is completely possible. They should also be able to "recall" the debt from collections, since they admit it was taken care of long ago. It takes a LOT of strength and patience and know-how to get these things done, but it IS possible, and you MUST handle it.

Last edited by lavenderchimes on Tue, Nov 07 2017, 10:14 am; edited 1 time in total

lavenderchimes

Tue, Nov 07 2017, 10:11 am

I'm sorry, I missed your above reply where you said Verizon has no records? I don't understand how they have no record of something that happenes theee years ago. Do you have more information?

If they really have no record of any of this, you should follow drima's advice. If Verizon has no record, collections can't prove the debt.

amother

Bisque

Tue, Nov 07 2017, 10:19 am

doctorima wrote:

Thank you for your advise. My question is that with paying $50 would it effect my credit score because if I pay it means that I owed it and was negligent or it doesn't work that way?

amother

Orange

Tue, Nov 07 2017, 10:32 am

amother wrote:

Thank you for your advise. My question is that with paying $50 would it effect my credit score because if I pay it means that I owed it and was negligent or it doesn't work that way?

Doesn't work that way. However - you should get a credit report and see whats going on.

amother

Bisque

Tue, Nov 07 2017, 11:16 am

amother wrote:

Doesn't work that way. However - you should get a credit report and see whats going on.

So if I pay it won't affect my credit score?

amother

Orange

Tue, Nov 07 2017, 11:25 am

amother wrote:

So if I pay it won't affect my credit score?

I can't imagine how paying a debt would make your score worse. This concept you have that 'paying it acknowledges there was a debt in the first place, making me look worse for ignoring it for three years' is not reality.

If there is a claim against you from verizon or the person who purchased the debt - its already affecting your score. Paying it won't make it worse - it will in fact start the process of rehabilitating your score.

But if you plan on fighting the claim - you may be better off not paying it - but I'm not sure about that.

doctorima

Tue, Nov 07 2017, 11:39 am

Paying will certainly not make your score worse. There's a possibility that not paying will make it worse. The best would be to fight it and get them to acknowledge that there never was any debt to begin with and get it removed from your files, but that may take a lot of time and effort.

As mentioned by others, you should first check your credit files (you get 1 free copy per year from each of the 3 major agencies) to see if it's even been reported to them. If you do resolve it - by paying or by getting them to acknowledge it's invalid - make sure to check again and confirm that it was removed.