Should I pay the settlement offer from the collection agency?

Collection accounts actually age off after 7 years. However, it looks better to have a "settlement paid in full" than it just sitting there as an open debt. 70% is kind of high for a collections account, so see if they're willing to go down on the amount. Even just for the sake of ethics and doing the right thing, you should pay so long as you have benefitted from the service you were provided.

70% on a 4 year old debt is NOT good if you truly negotiated IN WRITING ONLY you could probably get it at 25%. Your credit is already damaged. In addition just because it drops from your credit reports does not mean it is not collectible. Here is a list of states and the length of time a debt is collectible in court, they can go after you forever but with no legal backup they usually let it go after the SOL for COLLECTIIONS runs.

STAY OFF THE PHONE, I hope you have not been stupid and called them because in one or two states that can restart your SOL for COLLECTIONS!

http://www.cardreport.com/laws/statute-of-limitations.html

ADDED theallmom or whatever is full of crap once sold the original creditor will not even have a record of the account and will not even discuss it with you.

UNLESS you are willing to pay it I would ignore the whole mess.

People like TheallMother who answer these questions without a clue are what make this site dangerous to depend on for information. As another stated 70% on a 4 year old debt is not that good at all.

1

Convergent Outsourcing Collection Agency

Convergent Outsourcing Inc

A settlement can be worse than doing nothing. If you can pay 100% of the balance, then do that. Do not accept the settlement offer.

Paying will not improve your credit. The damage is done and will remain for the balance of the 7 year reporting period whether paid, settled, or unpaid.

70% on a 4 year old debt is a really bad deal. You should be able to settle for less than 25% in a lump sum ... more like 10%, since this debt may actually be beyond the Statute of Limitations (SOL), depending on what state you are in.

Collection agencies buy bad debt and report the defaulted debt to the credit bureaus. The debt may not have shown in Oct, but it will now.

If it's not on the credit reports, I suggest you leave well enough alone. If it's past the SOL, they can not sue you

>> While it seems like a good offer I worry about the damage it will do to my credit.

Paying a debt will never harm your credit.

>>I also worry about the agency itself, Convergent Outsourcing Inc(they have a lot of
>>negative reviews with the bbb and other websites).

Would you honestly expect a collection agency to have positive reviews?

>>What are the steps I should take?
>>I don't dispute the debt.

That shortens the process to only a few steps.

>>I really can't afford the offer they are making

That shortens it to NO steps. If you can't afford to pay them, then there's no reason to discuss whether or not it's a good offer or how to settle it.

>>Should I just ignore them and wait for the debt to fall off in 3yrs?

Well, I wouldn't ignore them. I'd tell them straight up that you don't have the money to pay them. As for the debt falling off in 3 years, you need to realize something that is VERY important. The debt may fall off of your credit report in 3 years, but that doesn't mean the debt is gone. They can continue attempting to collect this debt forever. Now, your state has a statute of limitations that is an absolute defense in court, and if you are certain that time has passed, you can tell them never to contact you again. That leaves them with no option other than to sue you. If they do sue you, you can simply show up in court and tell the judge that the statute of limitations ha passed. (now, you need to be 100% certain that the SOL has expired, because certain actions can restart the clock)

It will not help you rating? and you can't afford it? then why do it? sounds like you answered it yourself. They buy and sell those debts between companies and keep a percentage. It would be more productive to check your credit rating to begin with. And you might negotiate a better deal yourself with the cable company, who knows?

If this is for Indians asking for more settlements.... I think they've been given enough.