Notice and paymend demand?

Question

okay, last month I just received a letter stating that they want me to pay $386.01 for the care insurance that my ex boyfriend did. It was under my name as well. So now I'm paying half of the 386 last month and half for this month. My ex is an jerk and won't pay it off, and yes, it's from a debt collector. Does that mean It will show a negative account on my credit report, once I'm done paying it off? I make a payment plan with them, and my last payment will be due this month on the 31st. I just hope it will not show on my credit report. What should I do?

Answer 1

There is good new and bad news.

Bad news:

This will be on your credit report for 7 years, BUT, it will be moved from a derogatory entry to a potential negative and listed as paid (which means creditors will not see it as such a bad thing).  You can also ask for a "pay to delete" if it is not too late for the collection agency to consider.  Some will do this once they get their money (get it in writing though)!

Good News:  You can get even with your ex and really s***w his credit up.  This collection is already on his report (it was a joint account) so now you  should take him to small claims court (this is cheap to do) and sue him for his share of the debt.  If he does not show up in court (which in all probability will happen) you will win a court judgment by default and this too will appear on his credit report, and this is even worse then a collection and will really drop his score.

Hope this answers your question

LEGAL DISCLAIMER:  The advice contained herein is for informational purposes only.  It is not to be construed as Legal Counsel nor Legal Advice.

Answer 2

Good on you for looking after your debts. Too bad your ex isn't as upstanding! In any event since the account is joint, it will be reported on each of your credit reports and make mention of the joint responsibility. Your ex is also just as liable for the debt as you are. However for such an amount, it's better to pay it rather than ruin your credit any further.

The negative comments don't start showing once it's been paid, it will show from the day it was turned over to the collection agency to begin with, so it's already on there. The only upside to it, is it will eventually say "paid" or "paid in full". This negative account information will remain on your credit report for the next 7 years. Sad but true.

What I suggest you do is ask them for a 'pay for delete' option. That means that they will delete the account entirely from your credit report once you've fully satisfied the debt. Don't just take their word for it get it from them in writing. You're making your last payment on the 31st, so hurry up and try to get them to say yes. Most will do it for nominal amounts like yours.

Cheers!