Paying settlement. Credit rating effect?

[SolaireSolstice]

What is the name of your state (only U.S. law)? Texas

I have received a couple of settlement offers on accounts that have been deliquent past the statute of limitations and have fallen off my credit report.

I have the ability to pay these settlement amounts and would LOVE to get this off my guilty mind.

Questions:
1) What do I need to be concerned about to pay these collections settlements off? I have heard stories about collection agencies attempting to collect debt that wasn't even assigned to them. How do I know that this debt is assigned to this agency? The original creditor and amount is correct as far as my records go. What do I ask them to send beyond this? Or is this enough?

2) Weirdly enough I now have very good credit (over 700). These collection accounts have fallen off my credit report. It has been 8 years since first date of deliquency on the original accounts. How does paying off an old debt show on a credit report? How much will my credit rating go down with paying off these debts?

Thanks for your time.

[JETX]

Originally Posted by SolaireSolstice

1) What do I need to be concerned about to pay these collections settlements off? I have heard stories about collection agencies attempting to collect debt that wasn't even assigned to them. How do I know that this debt is assigned to this agency? The original creditor and amount is correct as far as my records go. What do I ask them to send beyond this? Or is this enough?

Couple of things.
1) Make sure that you get any settlement agreement 'PAID IN FULL, settlement of all accounts' offer in writing.
2) Make sure that the written agreement includes a statement that they have the full authority of the original creditor to settle this obligation. Preferably, something in writing from the original creditor, on their letterhead, showing that they have the authority to settle.

Weirdly enough I now have very good credit (over 700). These collection accounts have fallen off my credit report. It has been 8 years since first date of deliquency on the original accounts. How does paying off an old debt show on a credit report?

Since the debt is now dead (and no longer a negative), the payment itself has nothing to 'undo'. You can certainly ask them to re-post the obligation.... and 'paid as agreed'. If they agree... get it in writing.

How much will my credit rating go down with paying off these debts?

Probably zero.