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
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.
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