Expert: Chris Ebert - 7/29/2010

Question
I received a letter from a collection agency almost 2 years ago for less than a $200 debt.  They never contacted me again after sending the letter.  I have checked my credit recently and it is not showing there either.  I have pretty good credit with scores around 780.  I am willing to pay the amount due but don't know if I should contact the agency on the letter or not.  Or even what method to use to pay the debt.  I really don't want to be sued and don't know what my options are.  I know I will take a hit on my credit score but would like to minimize that as much as possible.  What can I do?

Answer
Sabrina,

I can understand why you would not want your credit score tarnished by this.

Since it is not on your credit report now and it has been so long since they last contacted you, I seriously doubt that they will post it now. That is not to say that somebody else can not buy the debt and post it. They can post it on your credit report only for 7 years past the original date of delinquency for the original debt.

If you are really worried about it, see if you can settle it for a deletion from the last company  that contacted you. Make sure that you get any settlement agreement in writing before you send them money.

As far as being sued, this is a very small debt and may not be worth suing over.

Chris Ebert
http://www.henleycreditlaw.com