How do you go about paying off a credit card that's in collections?
Answers:
Do not pay over the phone. Send them a check, money order, or even a cashier's check. This way you will have tangible evidence of your payment.
You might take this opportunity to negotiate a lower payoff amount than what they are asking. The credit card company tacked on some exhorbitant late fees and jacked your interest up when you went delinquent. Deduct these excessive fees and offer them what you owed before they added these fees. If you are scared of them have someone else do this for you. The collection agency will settle for less than the full balance.
Also take this opportunity to negotiate how they report the payoff to the credit bureaus. Request they eliminate the tradeline altogether in exchange for your settlement payment. If they refuse then request they mark the account as "paid in full" instead of "settled for less than full balance".
And last but not least do all of your negotiating in writing only. Do not call them. Do not pay over the phone. Use certified mail, return receipt requested.
That's great that you've got the money to pay off the loan.
You need to contact the collection agency and let them know that you can make full payment. I would recommend that you either write a check or go to your bank and get a Cashiers Check for this payment. On the "memo" line, please make a note to the effect of "pd in full acct # ??".
If you continue to not take the collection agencies calls, it just makes it worse.
BTW - the loan going to a collection agency will have been reported to the credit bureaus and will appear on your credit report. To not do any further damage to your credit score, try to not let another loan get away from you like this one did. If you find yourself starting to get in a bind again, please contact the lending agency and explain what's going on. Your financial institution would much rather work with you than pay a collection agency to try to get the money back.
Good luck!
How old is the debt? I would read an article at www.adviceontime.com on credit, before you do anything. If your going to pay off the enitre balance then your ok, but if you plan on making installments you need to be careful other wise you could start the statute of limitations again, and if later you cant continue making the payment you committed too, they could sue you. Be careful!
Good for you paid them by cashiers check money order or cash to their office or by check good luck
pay them
The very best thing you can do is request a settlement that will allow you to pay less than what you owe. This will show up on your credit report as an account paid via settlement. It's not a positive remark but if you're already late, you're credit isn't doing so hot anyway.
Call the company you owe and tell them you have (60%) of what you owe in cash right now. Tell them you will pay them this balance TODAY via credit card or Western Union payment. Tell them as soon as you receive a letter via fax or email that shows your settlement is approved, you will pay immediately. The credit card co. will only offer you a settlement if you can pay now.
And if you want to take it a step further, tell them if they don't accept your settlement offer, they will get nothing. Tell them you are filing b/k and you don't want to include them but you will if you must.
Good luck!
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