GoFuckYourself.com - Adult Webmaster Forum - View Single Post - What do you do if a collection agency is fucking with you

Herb Kornfield · 03-31-2005, 05:30 PM

1. You settled in full on the balance owed at 70%. You didnt Pay in full, BIG difference

2. The company that you paid merely bought the debt from the original creditor. They can take all the time in the world to update your credit report since they are a 3rd party and not the original creditor. Even if they did that today it would only reflect "settled in full" not Paid in Full since you only settled.

3. You will be liable to be taxed on the 30% that was "forgiven" when you paid the 70% settlement. You will get a 1099 form for the 30% that you pocketed from only settling out and not paying 100% in full. This 30% is viewed as income and taxed as such.

4. Anytime you make a deal with a collection agency get the offer to settle in writing, pay them with trackable funds ( cashiers check, etc ) that you can have a copy of as proof that they we in fact paid as agreed. Then get a Settled in full or Paid in full letter where they acknowledge you did resolve your debt. You will need this letter since your credit report will probably never be updated by them and this will show the people that you are asking now for credit that you have indeed fulfilled the obligation as you agreed with the agency.

03-31-2005, 05:30 PM
Herb Kornfield Is on the 1 Industry Role: Join Date: Sep 2002 Location: Philly Burbs Posts: 4,996	1. You settled in full on the balance owed at 70%. You didnt Pay in full, BIG difference 2. The company that you paid merely bought the debt from the original creditor. They can take all the time in the world to update your credit report since they are a 3rd party and not the original creditor. Even if they did that today it would only reflect "settled in full" not Paid in Full since you only settled. 3. You will be liable to be taxed on the 30% that was "forgiven" when you paid the 70% settlement. You will get a 1099 form for the 30% that you pocketed from only settling out and not paying 100% in full. This 30% is viewed as income and taxed as such. 4. Anytime you make a deal with a collection agency get the offer to settle in writing, pay them with trackable funds ( cashiers check, etc ) that you can have a copy of as proof that they we in fact paid as agreed. Then get a Settled in full or Paid in full letter where they acknowledge you did resolve your debt. You will need this letter since your credit report will probably never be updated by them and this will show the people that you are asking now for credit that you have indeed fulfilled the obligation as you agreed with the agency.