SOL in Kentucky?

[suecat]

What is the name of your state?What is the name of your state? Kentucky

1. What is the SOL in the state of Kentucky (regarding the payment of Credit Card balance to a collection Agency)?

2. I have been contacted by Credigy regarding an old balance on a Discover credit card (charge off date Nov. 2001) with a balance at that time of $4,992.

Credigy now says that I must pay them $7,980.00 (because of interest).

Must I pay this $7,980 to Credigy to "clear" my account, or can I pay the $4,992?

3. Also, if I pay either the $4,992 or the $7,980,
a. will this help raise my current credit score?
b. if so, how long will it take before it will help my credit score?
c. would this action be reported to the credit bureau by Credigy? or would I have to report it to the credit bureau?

 

[Ladynred]

SOL in KY for credit cards is 5 years, so you're not out of the woods for an account that went delinquent in 2001. The SOL won't expire until about June 2006.

Must I pay this $7,980 to Credigy to "clear" my account, or can I pay the $4,992?

Not necessarily, you can try to negotiate a settlement amount. The debt is 3 years old, Credigy bought it for mere pennies on the dollar. Offer them a 40% settlement amount and negotiate from there.

3. Also, if I pay either the $4,992 or the $7,980,
a. will this help raise my current credit score?

Unfortunately, NO, it will NOT help your score. Paid charge-off/collection or settled notation are all negatives and will not help your score 1 bit.

b. if so, how long will it take before it will help my credit score?

Oh, about 2008 when the account drops of your credit reports at the end of the 7yr +180 day reporting period. Of course, you can always negotiate for 'pay for delete' now, but that will only delete the collection entry, won't change the original creditor tradeline.

c. would this action be reported to the credit bureau by Credigy? or would I have to report it to the credit bureau?

I'd be willing to bet Credigy has already smeared your credit reports. You don't report anything to the credit bureaus except thru disputes.