John
Louisville,#2Consumer Comment
Mon, October 29, 2007
By making a payment you have reset the statue of limitations, so now it doesn't matter how long ago the debt default occurred. You wrote: as promised I made an auto pay to come out my checking acct and a pymt was sent to them. ================== Now that they have your bank transit number and checking account number, there's nothing to stop them from raiding your checking account and taking every penny you have. There are two rules for dealing with collection agents and you've broken both of them: 1) DO NOT give a collection agency on penny of your money until you FIRST get a written agreement from them that they'll accept your offer as payment in full. If you don't do this they'll simply come after the remaining balance after you paid off your offer that you made on the phone...an offer that has no legal validity as it can't be proven. 2) NEVER, NEVER EVER give a collection agency your bank transit and checking account numbers...they'll raid your account and take way more than you authorized. If I were you I'd cancel my checking account right now and have it re-issued under another account number. Make an offer and this time GET IT IN WRITING. Remember that these people probably paid pennies on the dollar for your account...i.e. a $1,000 account was most likely bought for $45. Do not offer to settle for the full amount. Once you've gotten the terms in writing, pay ONLY via USPS money orders. Paying off an old charged-off debt will not automatically give you good credit again. Paid charge-off accounts stay on your credit reports for seven years just as unpaid charge-offs do...It's slightly less damaging...but it's still a negative factor. FYI: "Settling" debt for less than the full amount MAY increase your next year's tax bill. The IRS considers forgiven debt as income...Not all collection agencies report settlements to the IRS...but some do...