Making the final payoff does not mean that your troubles
are over. You need to make sure that the collection is completely finished
before you close the chapter on that debt.
See to it that the payment has cleared. Check with the
bank and get a front and back copy of the cleared check. In case you paid
through cash, you should get a receipt from the collection agency at the time
of payment specifying that the payment satisfies the debt in full.
After a few weeks or a month, get a copy of your credit
report. Scrutinize it carefully. Depending on the agreement you had with
collection agency, the account should not be listed there anymore or has been
settled as “Paid.” If the account is still reported as unpaid, you should
dispute the listing with the credit bureau. Send copies of your receipt or
check to prove that you have paid.
In case you negotiated a pay for delete and the negative
information is still on your credit report, contact the collection agency. It
may have been due to negligence on their part that the listing is still in your
credit report. If they insist that the debt was not paid and won’t remove it no
matter how much proof you send them, you can file a lawsuit against them in a
small claims court and be awarded $1,000 if you win (if you have kept all
records of your transaction, you most likely will).
Always keep a copy of your settlement agreement, the
receipts for cash payment, and the check or money order you sent. This way, you
have proof to show that the debt has already been settled in case the
collection agency hired another debt collector to collect the remaining
balance. Hopefully, this will not happen to you. But in case it does, you are
prepared for it.
Another reason why you should keep all records is that
the collection agency might insist that you have not paid and will push through
with a lawsuit. It will be your word against theirs. But if you keep accurate
records, you won’t have to worry about anything.
The importance of sending letters through registered mail
with a request for return receipt, of keeping all correspondences sent and
received, and of having a file to keep track of each debt settled, cannot be overstated,
especially if you have multiple debts to pay off. Not only will it prevent you
from having to pay each debt more than once, it will also serve as a hedge
against future lawsuits. It will also facilitate disputing negative items in
your credit report.
Find more articles on debt
settlement by just clicking
on this link: http://consolidatedebtguide.org
Here are more interesting articles:
See to it that the payment has cleared. Check with the bank and get a front and back copy of the cleared check. In case you paid through cash settlement calculator
ReplyDelete