Should you pay third-party collection agencies for your charged-off credit cards?

Paying Third-Party Collections for Charged-Off Credit Cards

You will find more benefits dealing directly with the creditor than the collection agency. If you pay the original creditor, this would eliminate the having two negative entries on your credit report. The collection agency is just a middle man who will get a % of what he recovers for a fee. I would recommend going to www.areofcredit.com. Wonderful message board with everything you need to know.

Answer

If the amount shows "charged off" on the credit report, do not pay anyone more money. This renews the account and delays the time when it would not count on your credit report. These third party collectors buy the account for cents on the dollar in hopes that they can resurrect an old debt.

More Opinions

A charge off does not indicate the debt is not valid and collectible. The SOL for debt begins at the DLA of the account.

Any collection agency that owns the debt can file suit against the debtor in the debtor's state court. The SOL for debt applies to the time in which a creditor or collector can file suit, but it is not to be considered a valid defense by the debtor, as all states allow the "tolling" of the statute of limitations.

Any payment of any debt where the original creditor is not involved should be entered into by written agreement only.

• How can we know that is stable income or stably income?
• Stable income or stably income?
• Can a debt be sold to 3rd party if interest is paid each month?