It is wise to find out from the original phone provider whether or not they have sold the debt off, If they have then you have no choice but to pay the agency. If they have not then you may go to the original phone provider and pay your account. Pay only the assigned original amount and they close the acct with the collection agency Interest and all.

In regards to a settlment... If it is found on your bureau as a settlement in full, in most cases if it's not satisfacory to the institution that is loaning you money they will request that you pay the remaining amount. However the occasion may arise that you contact the agency that you made a settlement with and they are unable to re activate the account. It can be a tricky situation. I hope this information helps you. Good luck!

Regardless if it's on your bureau for another 6 years (as settled), if you need that bank loan bad enough, chances are you'll end up paying, it's just a matter of how much.

In theory, $770 is a lot of interest, but seeing as how the debt is 5 years old, it makes sense.

Who is the agency here? I have a strong feeling as MoneyMonty pointed out, it's probably been sold.. if that is the case, then in your case (seeing as how you need/want that loan) the agency hold the ace card. Don't tell them you want to settle because you want/need that loan. If the agency owns the debt, then the don't have a client they have to answer to.

Changes are, if you go in rough, they won't give you anything. Just tell them that you completely own the bill and have full intention to clear it with them. State that you want to clean up your bureau, and that you knew that there had to be interest here. You called in with hope that it wasn't going to kill you, but sadly it was far too much. Tell them that you were able to beg and borrow the principal balance, and that you *really* want to settle the account, again to clean your bureau.

Chances are, the agent will make it happen for you.

HOWEVER.. if the agency doesn't own this debt, and they are still contracted by the phone provider, then the agency has a set percentage they are allowed to settle at. You'll just have to ask them and cross your fingers the agency owns it.

Hey LucGaru,
Question, how does the collection agent feel that you contractually owe them the interest? Did they buy the debt?

How contractually is the phone company dealing with the collection agent?

You should put it in writing that you'll settle the debt with the collection agency for the amount owing and nothing more. What other leverage do they have, especially if the debt is 4 years old...

Keep in mind that if you pay the debt, it may stay on your credit report for another 6 years.!!

It gets complicated.

Hi,
Im trying to get a line of credit from my bank. They called me and asked about a collection against me. I did not know about it. I checked my credit report and its for $795. I called the collection agency and asked what it was about. I had the money to pay them. It turns out its an old phone bill from 03. Apperently I didn't pay the final balance (i thought I had but my records show I didn't) so the debt is mine. But when I asked the collection agency about paying it they told me with intrest it was $1565. The credit report by them says $795. I said I didn't think I should have to pay the intrest. They said "then the collection stays open" I asked why I haven't been contacted even though the credit report was made in nov 07? They said its because they haven't gotten to it yet...
How do I make this go away? Do I have to pay this intrest? is it better to just pay it off? Any help is appreciated.