Paying off collections/removal from credit report

[NPG]

What is the name of your state? Lousiana

Does paying off a collection automatically remove it from your credit report or do you have to negotiate that with the collection agengy prior to paying off the debt?

Also does the statue of limitations on the debt begin from the original date of the debt or from when it was transferred to the collection agency?

Thank you!

[cmorris]

Originally Posted by NPG

What is the name of your state? Lousiana

Does paying off a collection automatically remove it from your credit report

**No; it will stay on there for 7 years.

or do you have to negotiate that with the collection agengy prior to paying off the debt?

**You can try to do a pay for delete. You usually have to pay the amount in full, not a negotiated amount. Just get anything and everything in writing, certified mail return receipt.

Also does the statue of limitations on the debt begin from the original date of the debt or from when it was transferred to the collection agency?

**When you defaulted, or date of last activity.

Thank you!

How old is this debt and what is it for?

Have you sent a request for proper validation, sent certified mail return receipt?

[NPG]

It is the balance owed for a hospital bill from Jan/2002. I'm not sure what you mean by proper validation but it is a valid debt. To make a long story short, I had been arguing with my insurance company because they didn't pay their entire share of the bill per my policy.

[JETX]

Originally Posted by NPG

Does paying off a collection automatically remove it from your credit report

No.

or do you have to negotiate that with the collection agengy prior to paying off the debt?

Yes. However, you should realize that the only obligation for the reporting agency be that the reported information be accurate..... and not necessarily to your liking.

Also does the statue of limitations on the debt begin from the original date of the debt or from when it was transferred to the collection agency?

The SOL 'clock' starts on the default of the debt. It has nothing to do with the assignment or transfer to another owner or collector.

The following is from the FCRA (Fair Credit Reporting Act):
§ 605. Requirements relating to information contained in consumer reports
(c) Running of Reporting Period
(1) In general. The 7-year period referred to in paragraphs (4) and (6) of subsection (a) shall begin, with respect to any delinquent account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and loss, or similar action.

[cmorris]

Insurance is a pain (believe me, I have been where you are). Since it is valid and not out of statute, your best bet is probably to try and negotiate a pay for delete. Some companies (I don't know if this is the original creditor or collection agency you are dealing with) won't do pay for deletes, some will. Good luck.