Debt Collection

[RJKarl]

Debt dropped from credit report still owed




I’ve no idea what is the best thing for your friend to do at this point.



But I had a disputed charge from AT&T many years ago. It was really a terribly stupid mistake on their part and I was really angry they were charging me for an unusable service. But they were unrelenting and refused to remove the charge.

After vigorously but unsuccessfully challenging their charge, I decided to just pay it rather than endlessly fighting and risking credit reporting problems and hassles from collectors.


And I’ve greatly enjoyed tossing into the trash the dozens of incentive checks AT&T has sent me over the years sign up for their services.

This is actually not completely factual. Many states have limits on non-secured debt being collectible. Once you pass those thresholds neither the originator of the debt nor any collection company can demand or sue for the amount owed.

 

[ConnorEl]

Not sure what part of my story isn’t “factual”...?


Oh, maybe you mean the headline of the linked article?

They explain something about the statute of limitations for collecting debt in the piece. It’s just a headline.

 

[GoDeacsGo]

Debt dropped from credit report still owed




I’ve no idea what is the best thing for your friend to do at this point.



But I had a disputed charge from AT&T many years ago. It was really a terribly stupid mistake on their part and I was really angry they were charging me for an unusable service. But they were unrelenting and refused to remove the charge.

After vigorously but unsuccessfully challenging their charge, I decided to just pay it rather than endlessly fighting and risking credit reporting problems and hassles from collectors.


And I’ve greatly enjoyed tossing into the trash the dozens of incentive checks AT&T has sent me over the years sign up for their services.

One thing to think about, and I'm pretty sure it's on the Clark Howard site, is if you settle on less money make sure they list the payoff a certain way. One way is to say it is completely paid off. The other way is to say it was settled, which you don't want. Also I think if they reduce the amount you have to pay by more than $2k then you have to pay taxes on the reduced amount.
FYI, I'm only fairly confident of the above, which seems to be the norm on this thread

 

[RJKarl]

Not sure what part of my story isn’t “factual”...?


Oh, maybe you mean the headline of the linked article?

They explain something about the statute of limitations for collecting debt in the piece. It’s just a headline.

"Debt dropped from credit report still owed"

That part...not your fault...

 

[RJKarl]

One thing to think about, and I'm pretty sure it's on the Clark Howard site, is if you settle on less money make sure they list the payoff a certain way. One way is to say it is completely paid off. The other way is to say it was settled, which you don't want. Also I think if they reduce the amount you have to pay by more than $2k then you have to pay taxes on the reduced amount.
FYI, I'm only fairly confident of the above, which seems to be the norm on this thread

You are correct. Also, they can write it off and create "income" for you.