Expert: Creditwrench - 7/10/2008

Question
QUESTION: Hello.  I'm in a predicament.  Not intentionally... but I'm there and need some help getting myself out the right way... without causing damage to my credit report (I've just gotten myself in the low to mid 600s after years being all the way down in the 400s at one point).

Both accounts are with the same collection agency.  I received letters on both but did not answer within the 30 days time so I can't DV.  No point in that really anyway.  I'm not trying to get out of paying them.  I just don't want to pay a collection and then have it report on my credit reports for 7 years.

One debt is for last years property tax.  It has to be paid ASAP because there is a DMV hold on my license and my tags need renewed next month (August 2007).  The original bill they sent is wrong because my state tax refund was applied.  It is less than $100 that I still owe.  I can pay this one full out, no problem.  Question is... HOW?  Checked CRs about 3 wks ago and neither of these collection accounts are on there YET.  Have not answered the phone when they called... and they used to call ALOT.  Do I send a postal money order (taking orig. amount minus the applied refund) with a letter?  How will I know when the money order is applied so I can get them to give me confirmation and I can get my DMV hold lifted?  From what I've read online, it is BAD to send any checking account info or talk to them on the phone.  Can I ask for a pay for never reporting or to agree to delete the tradeline (although at last check, there never was an entry)?  I didn't not pay this tax on purpose.  I was in FL before coming to VA and FL does not have this property tax.  Before FL I was in Japan for eight years.

The other account is for a LOT more... $1860 for childcare debt that is two years old... also a county program (not special assistance... available to all in my county).  I would like to offer $100 monthly payments until it is paid in full.  How do I do that?  What kind of letter requesting this written agreement can I send?  Can I ask for "pay for never report?"  I went through a divorce where my ex did everything he could to drag out support orders from the court.  I was barely making ends meet.  I'm now a single parent on one income living in very expensive Northern VA (just outside DC).

Again, I'm not trying to not pay these.  I just really need some help from an expert telling me how to go about doing so.

Thanks for your time.  I REALLY appreciate your help.



ANSWER: The first thing I would do is go directly to the tax collector's office and try to pay them directly as though you knew absolutely nothing about any debt collectors. If they say it has been turned over to a collection agency tell them that you have an emergency and have to go out of town and can't do that until you renew your tags. Tell them you don't know about any collection agency and they never contacted you.

They just might go for it and then let them take care of the debt collecto. If they take your money and give you a receipt you can then tell the debt collector to go pound sand.  There are a couple of ways to do that which I never discuss on open forum because some real nasty tricks are involved and usually give you an excellent cause of action if you want to sue them in federal court and get your money back plus quite a fair amount more. Maybe you don't want to do that however.

I don't feel that I can give you much help with the child care thing. I'd try to do the same thing with that as with the tax man and see if they will take cash too. Maybe they will.





---------- FOLLOW-UP ----------

QUESTION: Unfortunately, after I got the state tax off-set letter, I e-mailed the tax office asking how I pay the rest because the system wasn't letting me pay online.  They told me I had to call the collection agency and gave me the number.  I really never got the tax bill in the first place.  My daughter and I rent a basement and share the mailbox with the homeowner.  I've had all kinds of mail opened, never seen, and even had a check returned to sender.  That's neither here nor there at this point though.  What do you think would happen if I just went in with my tax off-set letter and said I need to pay the remainder of my bill?  

If I go to the county child care office, do you think I would get a written agreement for a payment plan?  I sure can't pay $1860 upfront... not even half of it.

Answer
You are asking me to speculate on what the outcomes might be and unfortunately I can't do that. I would tend to think that you might have better luck with the tax collector than you will with the baby sitters. That's more because you have cash in hand at the tax office and not at the baby sitters. Cash always talks a lot louder than promises do. In either case, all you can do is go try your best on the both of the and see what happens.