I have an unpaid electric bill of 176 from when I switched providers a couple of years ago that I’d forgotten about. It’s been sent to collections but hasn’t shown up on my credit report yet. What is my best course of action? I’m worried if I call and make a deal with the collections company it will either still be reported or that maybe it has been but just hasn’t shown up yet? The collections company (convergent outsourcing, inc) has only sent me one letter, back in January, offering to take 70% of the original amount. I’ve really been trying to get my credit in shape over the past year because I’m trying to eventually save up to buy a house for my daughter and I. Any advice would be much appreciated.
I'd probably call the company I owe the money to....who.e that I forgot and over to pay. I'd also ask for them to send me a receipt
If it's in collections, it's on your credit report, most likely. I would check carefully. If it is not on your credit report, there is no reason to pay it. I would dispute the charge, they have to have specific prove that you owe it, so before you call them I would make sure you understand not to confess to it, because then they can do a whole lot of stuff against you.
It’s not on there, I keep very close tabs on my report. I know the charge is valid I just don’t want it to ever show up. I’m willing to pay the debt in full I’m just wondering that even if I do that, if it will still show up at some point as paid debt. I know that if I don’t pay it it will eventually show up for sure. Also I’m wondering if I should contact reliant directly or if since it’s already been sold off they won’t have anything to do with it anymore.
They can't take it directly anymore if they've already sold the debt to a collection agency, obviously for less than 70%. Just pay the collection agency. If their invoice has everything right, the company, account number, original exact amount etc. you should be good not great.
You're actually suggesting that he not pay a debt he acknowledges he owes? Do you exhibit the same deadbeat behavior you encourage others to exhibit?
I would call Reliant, explain the situation and see what they say. If they will accept payment from you, pay it and ask them to send a letter specifying the debt is paid in full. If it does eventually get on your credit report, you at least have a letter acknowledging you paid it. Generally when one applies for a home loan and there are questions about one's credit, a mortgage company will ask for a letter explaining the 'dings'.
I don't encourage supporting debt collectors, period. So the answer is yes. Of course, I don't suggest that he doesn't pay his bills and be upstanding. But debt collectors are the scum of the earth as far as I'm concerned. And moralistically-speaking, your president hasn't paid taxes in decades, if he ever paid anything at all, didn't pay workers he hired, etc. Don't talk to me about morals, in a devoid society.
My President? I'll have to go complain to the voting board that my vote must have been miscast. And regardless, not sure what point you are trying to make. I feel everyone should pay what they legally owe. And....you are suggesting that he not pay a debt he acknowledges he owes and he admits he wants to pay regardless of who owns the debt. Do you have a lot of negative personal experience with debt collectors?
I used to work in debt collection and KYC for a Credit Card company. A couple of advice. First, call the electric company to see if they have a deal to bring that owed amount back to them so you can pay it to the electric company. Second, before you pay less than the actual amount owed (70% as you indicated), ask and have it in writing that it is NOT a settlement. Collection companies are notorious for shady practices and they won't voluntarily disclose that information. FYI, a settlement will stay on your credit report for 7-10 years and it has a significant negative impact than just unpaid bill. The unpaid bill will stay on your credit report for 2-3 years generally. Finally, even if you pay off the amount, the collection company will report it as "paid in full" to the credit reporting agency, but the derogatory marks you've already accumulated for missed payment past 30 days will not be removed by paying off the amount. That will still be there. This information is from my work experience. Personally, I didn't pay (out of principle) a $350 bill from a physician for a visit about 4 years ago. It went into the collection the same year and stayed on my credit report until June 2018. I was excellent on everything else in my finance (no missed payments, less than 20% credit utilization, 2.4 yr credit history, etc.) While I still had 1 collection showing on all three CC agencies, my average score was 753. My point is, I didn't pay the doctor's bill and let it go to collections, but I was able to stay excellent on credit score by keeping up with other finances.
letting a $176 bill that you have acknowledged is a valid bill, and that you have admitted to forgetting about affect your credit seems a bit silly to me.
Just because you're not seeing it doesn't it's not a ding. Short term though, time heals most. Either way doesn't matter, paying is better than not paying it, idk why you would even think about it over so little.
That’s the point I’m trying to pay the thing in a way it won’t affect my credit. I guess I’m going to try and call reliant first and see if they’ll get the debt back. I’m willing to pay in full I just don’t want it to show up. It was a pure oversight on my part. When I switched companies I thought I was all paid up since I have everything on autopay and paperless billing. I wasn’t aware of the debt until I received the letter from collections. I had a stellar payment history with reliant up until that point.
at this point, I would contact the collectors that it was transferred to especially since they are the ones who have notified you initially. from their your options/resolutions will probably surface
Yeah I know, I just mean thinking so much about it generally. The only solution, unless you plan to contest which it doesn't sound like you are, is just pay the collection agency, nothing else to do. The rest of your impeccable payment history with them, and elsewhere over time stands with it. There are no other qualifiers or reasons why it happened that get attached to it, at this point you just choose to resolve it with whoever currently holds the debt, or leave it unresolved. THat's all that matters at this point, nothing else to figure out. Edit- Don't worry about this at all after you resolve it- if that's the worst of it, you're in great shape.
The electric company has already sold the dept off. Even if you paid them directly, it would still show as an unpaid bill, since you owe the collection company, not the electric company. If they've already offered you a settlement of 70%, just pay it. Make sure to get it IN WRITING that this is PAYMENT IN FULL. Then keep that letter and a copy of the paid check with you FOREVER. If you're applying for a mortgage, they may ask you about it and you can just pull out the letter/check and they will probably totally disregard it - even if it's on your credit report. Especially for such a small amount. Do NOT give these scum suckers electronic access to your checking account.
