Posted on: 15th Feb, 2012 02:23 am
My original creditor has charged off my debt account. I received a collection letter from the CA for a settlement agreement for $520.00. However, the CA is not reporting the account to my credit report. Should I pay this amount or let it be? I’m planning to take out a mortgage but I am afraid they will update with the original creditor. What should I do?
I personally feel that before you pay anything to the CA, make sure that the CA really owns your debt account. You need to send a debt validation letter to the CA in order to find out whether or not they really own the account. If they properly validate your account, then you can pay it off in order to get rid of it and remove the negative item from your credit report.
Hi Nelson,
If the CA has still not reported anything to your credit report, then you shouldn't start paying it immediately. As Niicss has suggested, you should ask them to validate the debt before you pay them a penny.
Thanks
If the CA has still not reported anything to your credit report, then you shouldn't start paying it immediately. As Niicss has suggested, you should ask them to validate the debt before you pay them a penny.
Thanks