Is it good to pay off a old credit with a personal check? Asset Acceptance offered me a discount on an debt?
by admin ~ December 19th, 2007 . Filed under: Credit .
chicken2008 asked:
Is it good to use a personal check for payment. Or is it better to get a money order to send them.
Carlos
Is it good to use a personal check for payment. Or is it better to get a money order to send them.
Carlos
December 21st, 2007 at 1:15 am
Never send a collection agency a check. You do not want them to have your banking information. They will drain you dry.
Always send a money order. And get any agreement in writing before sending anything.
December 22nd, 2007 at 11:11 am
A check is fine, and normal, as long as it’s made out directly to the bank that issued the credit card. Don’t pay this “Asset Acceptance” company anything. They’re running a scam. They will possibly pay your bank something, but you will still owe the rest of what they don’t pay. Talk to the bank directly. Ask if this other company is legit and/or if you can pay off the balance in full at the discounted rate.
Also, be aware that if you do get a discount, your bank is going to report you to the 3 credit agencies. They don’t write off debt without taking action. It will hurt your credit unless you pay them off in full.
December 25th, 2007 at 2:12 am
I’d suggest money order, postal money order, bank check, rather than letting them have your bank account number. Make sure part of the deal is that they are writing off the rest of debt and will not be issuing you a 1099C, which would cost you money at tax time. Get it in writing, or you write it to them and get them to agree BEFORE sending them the money.
December 26th, 2007 at 6:28 am
NO!!! Do not give them your bank account info. Use a postal money order.
December 29th, 2007 at 9:01 am
Well the most important thing is what Bud Hibbs as stated regarding this collection agency, and I quote “Asset Acceptance Corp has earned the distinction of one of “AMERICA’S WORST COLLECTION AGENCIES”. They lie, steal, cheat, misrepresent, file bogus claims, create phony documents and commit perjury in the court system JUST to increase their bottom line.”
You may not even have to pay this debt as it may be so old it is too late to take legal action.
BUT, if you agreed to make a settlement, then you reset the state statute of limitations and it is now too late. They record all phone conversations to prove a debtor has made acknowledgment of owing the debt.
Use a cashiers check or money order only to pay off this debt. As others here have stated NEVER SEND A PERSONAL CHECK as this gives them your routing number and account number and you can not trust these people.
MOST IMPORTANT: get this agreement in writing BEFORE you make any payments. They could come back for more (this is the reason why you do not use a personal check) and take it from your account. Also request the debt be paid for deletion of the entry on your credit report. They do not have to do so, but try anyways.
FYI most collection agencies pay anywhere from .02 to .20 on the dollar for the debt. You can also try for an even larger discount!
Here is the link to read more about them
Hope this answer is of help to you
LEGAL DISCLAIMER: The answer provided here is intended for informational purposes only. It is not intended nor presumed to be legal counsel or professional legal advice
December 29th, 2007 at 1:50 pm
Before you start cutting checks: How old is this debt and have you confirmed that this debt is within the statute of limitations?
There is a statute of limitations for credit card debt, which is the amount of time that they can successfully take legal action against you for the debt. This time period varies for each state. You can find this time period for your state by going to the link below and looking under “Open Accounts.”
If your debt is older than the time period listed for your state, they can no longer defeat you in any court action because the debt is time-barred. …If this debt is outside the statute of limitations, you don’t have to pay it.
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If the debt is still within the statute of limitations:
Don’t make the mistake of simply cutting a check to whatever collection agency has the debt for the charge-off and assume that your credit rating will be magically restored…Doing so will not remove it from your credit reports. It will simply be updated to a “Paid Charge-Off,” which, while slightly better, is still a seriously derogatory item. Per the Fair Credit Reporting Act, a charge-off, whether paid or not, can remain on a consumer’s credit reports for up to seven years.
If you’re going to pay off old-charged-off debt anyway, then you might as well negotiate the lowest settlement you can possibly get, being that the negative charge-off notation is going to stay for 7 years on your credit report anyway. You have to be VERY careful in this effort…Mail them a vaguely worded statement like:
I am willing to settle this matter for 25% of the original amount. This is in no way an admission of this debt, but rather an attempt to settle this matter. Your firm must send me a written agreement on your company’s letterhead that you will accept this amount as “payment in full” and that is issue will be settled. Upon receipt of this agreement, I will mail you a money order for this amount.