Skip to main content

If I offer a payment and the debt collector refuses, are they required to remove it from my credit report?

Orlando, FL |

I have a repossession on my credit report and I was wondering if I offer them a payment and they refuse to take it, are they required by law to remove it from my credit report? The original loan was from Central Star Credit Union in Kansas, but I live in Florida now.

+ Read More

Attorney answers 3

Posted

No, you have bought into an old urban myth. Unless you have offered to pay 100% of the debt owed, plus interest and any legal fees, you still owe the debt. Furthermore, even when you pay off the debt, it will not remove it from your credit report but will only say that a delinquent debt has now been paid. A credit report is a history of how you have used credit and the history remains open for a long long time. Hope this perspective helps!

Asker

Posted

So by paying the debt does your credit score go up? Or is it pointless to even pay the debt off?

Dorothy G Bunce

Dorothy G Bunce

Posted

Paying off the debt doesn't change your credit score but can prevent the creditor from suing you to collect. Paying off the debt can extend the length of time the information remains on your credit report, as the length of time is measured from last activity.

Asker

Posted

Okay, thank you for your help!

Posted

I can't add anything to the advice given to you by Ms. Bunce. She is, as usual, absolutely correct.

I often take cases other attorneys won't, so call me for a free consultation. My number is 727-712-3333, or you can view my website at www.TampaConsumerLawyer.com

Asker

Posted

By paying the debt does your credit score go up? Or is it pointless to even pay the debt off?

Posted

You probably have to tender payment but you may also want to try and get the trade line removed as part of a resolution. Also, if it is disputed (I have represented a lot of individuals who thought the repossession was kosher but upon analysis by me, I was able to defeat a deficiency and get some money in the client's pocket), you may want to ensure you do not receive a 1099-c from the creditor if you settle for less than full balance. A 1099-c is given for discharge of an indebtedness and the IRS starts with the premise that the amounts therein should be included in your income for that fiscal year. Perhaps this is some starting language your attorney could use in negotiations:

Creditor and debt collector agree to accept $X,XXX in full settlement of this matter if payment is delivered within ten (10) days of the date this settlement is approved in writing and faxed to Good Consumer. Creditor and debt collector further agrees (a) not to issue a Form 1099-C to Good Consumer due to the nature of the dispute or for alleged discharge of indebtedness based on the nature of the dispute, (b) close its file, (c) within 25 days of the settlement check clearing its account, to request the deletion of its trade line to the three major credit bureaus, Equifax, Experian and Trans Union and any other credit bureau if notice is given to Creditor and/or debt collector that the trade line is being reported. Creditor and debt collector will furnish to Good Consumer a copy of the Automated Universal Data ("AUD") form submitted to the referenced credit bureaus requesting deletion. Creditor and debt collector in no way guarantees the conduct of the credit bureaus. Further, there is no understanding or agreement of any kind for any further or future consideration whatsoever, either implied and/or expected.

I always recommend a signed written agreement when you are dealing with a debt collector or creditor. I wish you the best in the future. To learn more about repossessions, you can go to my website and review an old article I wrote: http://fortheconsumer.com/article-repossessions.htm

If this information has been helpful, please check the thumbs up tab below. Disclaimer: The above is intended to give you some insight into various legal topics. This information is not intended as legal advice, but rather an attempt to provide helpful topical information. Although I would welcome the opportunity to speak to you about representing you, we have not established an attorney-client relationship. An attorney-client relationship requires me to agree in writing to represent you. Unless that happens, you should not take anything I say or write to be legal advice about your situation or make any decisions based on it. It is very important that you consult a lawyer as to the specific circumstances of your case. If there are more facts that you overlooked and did not include in your initial question and you would like to email me, you may send an email to stevefahlgren@gmail.com. Of course, sending an email to me or my firm does not create an attorney-client relationship. We do not accept client representations by email. We do not always treat unsolicited information received by email from our website as confidential unless you have first confirmed that we do not have a conflict of interest. Please do not send us any information about a potential representation until you communicate with us to find out if we have a conflict of interest with the adversary in your particular case. As a rule, we do not represent institutions against consumers so there is usually not a conflict of interest when it comes to consumer protection but it is always safe to be sure. If you send me an email without checking to ensure there is no conflict, you also agree that our review of your email or any information in it, even if you submitted it in a good faith effort to retain us, and even if you consider it confidential, will not preclude us from representing another client directly adverse to you, even in a matter where that information could and will be used against you. Sorry for all of the legal words but I like to be up front with potential clients and my clients. Best regards, Steven M. Fahlgren Attorney, Arbitrator and Certified Circuit Civil Mediator Law Offices of Steven M. Fahlgren, P.A. Phone: (904) 845-2255 Phone: (407) 852-1711 www.ForTheConsumer.com www.FahlgrenLaw.com www.SteveFahlgren.com

Asker

Posted

I was actually thinking about disputing it. Do you think this is something I should try to tackle on my own? I was going to use sample letter 18 from creditinfocenter.com and why chat.5u.com. Also, do I follow the law for Florida where the car was repossessed, or Kansas where the loan was?

Steven Michael Fahlgren

Steven Michael Fahlgren

Posted

You should dispute it if it is objectively inaccurate but you have not provided enough information for me to evaluate that issue. I am unable to answer your other questions without a lot more information including a review of the transactional documents and a timeline.

Asker

Posted

Okay, do you happen to either give free consultations or work with MetLaw?

Steven Michael Fahlgren

Steven Michael Fahlgren

Posted

For consumer cases, I have an intake process. That process usually involves the consumer supplying all documentation in chronological order in a adobe pdf document, preparing a timeline and completing an intake sheet. I carefully review that material and in some circumstances, I offer a free consultation. I do not charge for my review of the material submitted unless otherwise agreed to beforehand. I have an email with the details if you want more information.