Q: Collections agency closed an inquiry for bad debt charge off and didn't contact myself so I contacted them.
Is the reason they didn't contact me cause they aren't reporting for 6 months? That's what the lady to me on the phone. Also that I need to pay half down of the charged account before end of feb
Lawyers, want to be a Justia Connect Pro too? Learn more ›
- California
- (916) 704-3009
- View Profile
- Answered
A:
In California, a collections agency is not required by law to contact you before reporting a debt to the credit bureaus. The six-month period mentioned could be their internal policy or a specific arrangement related to your case. It's important to note that while they may choose not to report immediately, they still have the legal right to do so at any time during the debt collection process.
Regarding the requirement to pay half of the charged-off account by the end of February, it sounds like they may be offering a settlement. In such cases, it's crucial to get any agreement in writing. This ensures that both parties clearly understand the terms, including any impact on your credit report and the handling of the remaining balance.
Keep in mind that paying off a charged-off debt can positively impact your credit history, even though the charge-off itself will remain on your report. However, it's always wise to review your options and consider seeking advice specific to your situation. Remember, every financial decision can have significant long-term implications.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
