Do all collection agencies enter payment onto credit reports?

Question

This saga continues re an old student loan (Perkins) debt I didn't know I had. $300 was owed (from 1988), and collection agency wants $671. No problem, except this isn't on my pristine credit report, and I don't want it entered there. I'm afraid that payment will open things up and they'll list it on my credit report.

I sent an Offer in Compromise, offering to pay a lower amount and stipulating it would not be reported to credit bureau. They wrote back that "The University of x*x cannot accept less than the amount owed." Well, they aren't the University, they're a collection agency!! Anyway, I will gladly pay this, but don't want it on my credit report. I'm afraid to call them. Should I send another offer in compromise offering the entire amount with the stipulation that it won't be reported to credit bureaus?

Please advise!

Answer 1

I'm confused. You had an old Perkins Loan that they are just now contacting you about? You were NEVER reported late on an old loan from 1988?

I find this hard to believe. Student loan lenders are REQUIRED to report delinquencies.

This agency might be trying to scam you.

Before I paid this, I would demand debt validation. Make them prove that you owe the debt.

If they can validate, send them a modified pay for deletion letter. You want non-disclosure, so just put something in the letter about restricting communication on this debt to any third party, including the three major credit bureaus.

You will have to pay in full though...if they really own the debt, that is.

Answer 2

Honestly if it wasnt on your credit report and it was from 88 then I wouldnt have even worried about it to begin with. They can or cannot enter either way its their choice not yours, but by sending in that letter telling them what you did they may hit it now just because you showed interest in it not hitting your report! Collection agencies are butts and will do what ever they feel will get you to pay the fastest and you have just let them know what will hurt you most! Good luck!

Answer 3

As you probably know, student loans never go out of statute, so the collection agency has the upper hand.

They can put that item on your credit report you at any time, so I think you've figured out the right answer yourself.

Send -- by certified letter -- an offer to pay the full amount, contingent on the matter not being reported to the credit bureaus.