“Get Verification When You Pay Collection Accounts”
Many clients that I obtain a credit report for have collection accounts and often say these accounts are already paid. I will explain that I need evidence so that I can send the information to the credit bureaus. So often they say that they are not sure when they paid or if they even got a receipt and they don’t recall getting anything that will evidence payment or settlement.
I hate the idea of folks paying for anything twice, but without verification the bureaus can’t take anything off the report. Sure they can contact the creditor, but seldom has any client gotten them to take the obligation off the credit report.
Remember, collection agencies or creditors that are attempting to get paid will literally say almost anything in order to convince you to pay them, even that they will take the debt off the credit report and then they don’t follow through. Most folks believe them and expect the negative items to be taken off, but unfortunately they often lie.
I have had clients file complaints with the CFPB, consumer protection and other entities and the results are very frustrating at best. Sometimes depending upon the amount of the debt, it makes sense to just work out another settlement.
There are a couple of important reasons to get rid of these collection items. Often the creditor reports to the credit bureaus every month and every month your credit scores are being affected. The other reason is the lender may require the obligations to be paid prior to giving a mortgage.
Here is what is important, if a settlement is reached get evidence, keep canceled checks, money orders, credit card receipts or bank statements that show the payment.
If the creditor was paid, follow up to make sure the account shows as paid or settled.
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Joe Petrowsky, NMLS #6869
Right Trac Financial Group, Inc. NMLS #2709
110 Main St.
Manchester, Ct. 06042
Office: 860 647-7701 x116
Fax: 860 647-8940
Cell: 860 836-9294
Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.
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