Debt Collection after 8 years

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Debt Collection after 8 years

Postby knuddl » Tue May 03, 2011 4:09 am

Hi there,

maybe someone can give me some advice:

in 2002/03 I left the US and went to Europe. I had quite a few CC (AMEX, Citi, BofA, Discover, Cap1 and a few StoreCards). I lost my job at that time and couldn't pay all of my CCs anymore. I did PIF the AMEX with about $ 2'500.-. The other ones had an average of $1'500.- that I couldn't pay anymore. I think I had 4 chargeoffs. I'm back in the US since mid 2009. When I first checked again my CR in late 2009 I had a score of 600/610/577. In mid 2010 almost everything fell of my CR and my score went up to 730/730/738. I did apply for two secured cards (BofA and Cap1) and got approved with both of them. At the end of 2010 I applied for the AMEX Gold and Discover Card (got approved with both of them). Last month I got approved for the Citi Platinum Select MC with a CL of $2'000.-.

So, I'm really working hard to rebuild my credit. My utilization is almost 0%. I recently discovered, some Debt Collection Agencies were pulling my credit. In the meantime I've received two letters (one from Allgate and one from Asset Management Professionals > AMP) that I have outstanding balances to pay.

Allgate is about $2'000. They are writing that they are authorized to offer a significant discount to help settle the account.

AMP is also about $2'000. They want $1'500 in either 3 payments or 1 PIF.

Well first of all, I don't really have the money to pay them back in full nor to make arrangements for a payment plan. That's the reason why I'm not using my current CCs either. Even though I know I did have this debt and I stand for it, I wonder if I can settle for a better deal.

Should I even contact them? Is there a possibility to renegotiate for a lower payment (I know that the accounts with the original creditors have long been charged off and the Agencies bought the debt for pennies on the dollar)?

Any answers will be greatly appreciated.

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Postby glexo » Thu May 05, 2011 6:49 pm

I would ignore them. That is too long ago and they are trying to intimidate you to pay for old debts they bought for pennies on the dollar.

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Postby Mogul of Pineapples » Mon May 16, 2011 10:27 pm

02 and 03 is coming up on 10 years ago. To be quite frank I am shocked AMP is asking for 75 cents on the dollar for such an old debt. They must think you're an idiot to try and ask for that much on debts that are nearly a decade old. Did you ever followup with them? I would ignore these altogether because paying them off might reset the clock for how long they stay on your record but I am not sure exactly how that works. The user DoingHomework on here should know for sure.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

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Postby Hermanator » Mon May 23, 2011 3:57 am

Debt only stays on the credit file for 7 years and 10 years for bankruptcy. Or at least that is what I have been told?

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Postby NothingButTheTruth » Tue May 31, 2011 8:39 pm

Majority of the time debt is continuously sold. When you default Bank "X" sells it to collection agency "Y"(usually a reasonably big company). When they donot collect they sell it for less to a smaller collection agency. That process continues 2-3 times. Now the little guy collection agency "Z"(scavengers) try to collect no matter if you paid in full it was deleted after7 years etc. They dont care because they purchased that debt for pennies on the dollar and will tell you threaten you with anything to collect.

Now in the case you re-aged or confirmed the debt you are still liable for it even after the statue of limitations for your state. This means you tried to dispute on your credit report and the creditor confirmed it etc. Now the time frame starts all over again from the date of confirmation.

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