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I received a call from a collections agency a couple of days ago about an unsettled bill of $200.

Turns out that during my grad school days (over 7 years ago), we used a water delivery service and I was the one who set it up. Once I graduated, the other guys in the house I lived in took it over. I knew the guys pretty well and so (very stupidly) didn't even think about closing/transferring the account.

Now all of them left that apartment a year ago and the new tenants did not pay for the service so it ultimately reached a collections agency.

I asked the gentleman who called me if this would come on my credit report and he said it would not if it were to be paid in full, so I gave my credit card number and charged the whole amount to it. He said he would send me the receipt to my new address.

Now my question is, is what he said about reporting to the credit bureaus true? I checked my credit report and there are no mentions of the late payment or collections (yet). I'm very worried! The wife and I are looking at buying a house in the next few months and the last thing we need is a derogatory mark like this!

MrChrister
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Craig
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1 Answers1

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Your credit report should be a factual list of your credit records. It would be reasonable for these facts to be recorded:

  • You were delinquent on a bill 7 years ago.
  • It is now paid in full and current.

If any other facts show up (you are still delinquent, the amount is wrong, etc.) you can dispute it with the credit bureaus and get it removed.

I have heard of agreements called "Pay for delete" or "Pay to delete" like this. However, having nothing in writing, just a phone conversation is certainly not a guarantee that it won't go on your credit record. I have no experience with pay to delete letters.

At this point, I think you have to wait and see if it shows up. If it's not on there now, my guess is it will stay off but there is no guarantee.

Alex B
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