Credit issues..please help!?
Answers:
Neither the collection agency or Macy's is going to take you to court over $300. It would cost them many times that amount to hire a lawyer and go through all the hassle it takes to get a judgement on you.
Here is the best way to handle this bill depending on your financial situation and what you want to do.
Choice 1 - Not Paying the Bill
In this scenario, the collection agency will continue to hassle you, but that's about all they can do. If you want the phone calls to stop, just write the collection agency a letter and tell them to stop contacting you. Per the Fair Debt Collection Practices Act, they HAVE to comply! Make sure to send your letter certified, return receipt requested. You will not hear from the collection agency ever again! The original creditor may decide to hire another collection agency to try to collect on the debt (usually months or years later). The bad debt will remain on your credit report up to 7 years from the time you were first 30 days late, and never made a payment again.
Choice 2 - Paying the Bill
Unless the bad debt is removed from your credit report, paying off a collection or charged-off account will NOT improve your credit. If you are going to pay the bill, insist that the collection agency remove their negative information from your credit report in exchange for payment. Make sure to get this in writing. The collection agency may or may not agree to do this. If they don't agree, you can write them and tell them not to contact you again, and you will only deal with the original creditor. Then, contact the original creditor and see they will agree to this. Good luck!
YES. Just suck it up and pay it. I have credit issues myself and am finding out you pay the bill, it is done and will go away. Not right away but in time it will. Learn from those mistakes.
The $30 is probably because they added extra late fees and penalties, etc. You can try to negotiate the debt down. They might settle the account for $150 if you tell them that's all you can afford. Don't let them scare you... they will NOT take you to court. The agency is being paid by Macy's to collect a debt, and they will go to extreme lengths to do it. If they threaten to garnish your wages, call your employer, show up at your house, etc... this is NOT LEGAL and you should remind them of that. If they call your house or cell phone all day long, answer the call and tell them that you do not authorize calls to come to your telephone number regarding this matter and ask to be contacted by mail only. If the calls persist, write a letter to the agency. If they contact you after receiving your letter, that is unlawful. It's only $300. I would say to try to negotiate it down. If they won't go for it, tell them the only way that you can afford it is to pay it down over 3 months. They should go for that.
Collection agencies charge their clients (in this case Macy's) anywhere from 15% to 50% of collected fees. So they want as much money out of you as possible. Next time they call, tell them: 'I cannot pay more than 70 dollrs at all. I will have to look for other alternatives, like filing for bankruptcy, if you and other creditors don't stop calling me." They will likely bite the bullet and take your 70 or so dollrs. (Bankruptcy is only a last resort, you do not really want to go for it!)
Yes!!pay them and u should have paid them in the first place..
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