How do you settle a debt with a collection that is over 5 years?

I had a roommate in college who really screwed me over by bouncing her half of the first month rent with a check. The leasing office slapped a bunch penalties on her and even took her the court but she didn't show up. We got an eviction notice after only being in the apartment for 3 weeks. The check she bounced was in the amount $327. After all the NSF fees she owed $800 plus $84 everyday she didn't pay it. She skipped town on me and never paid her debt. Since we both signed the lease it ended up on my credit report. The amount was $2700. I been paying on it for a year and half now the balance is $1400. How can get the collection to settle for 50% or 75%. I have paid already $1300.

Also, we signed the lease agreement when it was under a differenct management company. Now they sold the company to another company. Why should I have to pay the new company?

First, when the new leasing agency bought the old, they bought all of their accounts receivable in the purchase (which included yours). That's why they want to collect - they paid the old agency for it, now they want it back from you.

Second, collection items fall off of your credit report after 7 years. IF you had not been paying on it, it would have fallen off of your report in 2 years. But you can't go back and change that. Now you must try to resolve it by working with the company, or just wait another 7 years for it to fall off.

Call the company and ask for a supervisor in the credit dept (you want to speak with someone who will have the authority to do what you are asking). Explain what happened and how you feel you have been very generous in what you have paid, and ask if they will consider the debt settled. If they refuse, then play hardball...tell them that you refuse to pay the entire amount. Let them know that you will settle now for 50% (tho if what you say is true, I wouldn't pay another penny if I were you!), or you will just add a letter of explanation to your credit file. Tell them you know that the one item on your credit record is not going to prevent you from obtaining credit in the future.

Then go to the credit reporting agencies and try to get them to remove the ding on your record. If they refuse to budge, then write your letter of explanation.

If the rest of your credit is good, a letter of explanation is all any lender will need from you before extending credit to you. This is a letter explaining what happened, why you don't believe you should pay off the remaining debt, and what you have done to try to resolve it. When you apply for credit (for a car or house), you simply give a copy of this letter to the bank where you are applying for credit. This is what my husband had to do. He had a situation where he "broke" a lease. He paid for two extra months when he broke the lease and the apartment was rented out the very next month, so he did not owe anymore. Yet he ended up with a $2,400 balance on his credit report from the leasing agency (most of which was late fees). When we applied for a mortgage for our first house, that was the only ding on his credit record. He provided a letter of explanation, which the loan officer said is all they needed. Of course, you will still have to try to resolve the issue with the leasing agency (or collection agency) - and document your contact with them in your letter of explanation.

Call and offer it. You have nothing to lose. Kind of sound like if they won't work with you, you will file bankruptcy. I am sure they will take it.

listen up....hire a credit repair service to dispute any and all derogatory credit on your report...by federal aw, even if you owe the money, the creditior must verify the debt within 30 days fo demand or they must delte it...based on stats alone, a majority iof negative stuff is deleted based on human eror and lazines...best done during the holidays when they are over whelmed...cost is cheap like 200 bucks!

Since you have been paying on it for over a year and a half now.

The collection company will be reluctant to work out a deal with you because they have been getting a check from you for the past year and a half.

But you still can request a settlement of the debt.

If you are having a hard time making the payments or you have been late or missed a payment or two in that year and a half.

They will listen if they think you are going to file bankruptcy or that you are going to stop making payments to them

Offer to make a settlement of 50% of the balance left in one lump sum.

Work up from 50% to 75%.

If They agree you can also ask to have your credit rating upgraded since you have been making timely payments.

Call the collection agency and explain your unique circumstances. More than likely, they will agree to settle the debt. You have rights - if you're an American citizen - listed in the Fair Credit Reporting Act of 1974 (I think the year is correct) that will disallow them to 'hound' you via phone and mail. I think you'll need to write them a 'Cease and Desist' letter indicating that you have no intention of paying it and stop the collection attempts. You will need to sue the former roommate in Small Claim's Court since the total is under $3,500.00 and then dispute the 'ding' on your credit report with the three major reporting agencies. Usually, you can talk your way out of these things. By law, the credit reporting agencies and/or collection agents must present unrefutable proof that the debt is legitimate (i.e. a copy of the lease) and more than likely they will not have a copy. If they do, it will clearly show the former roommate on it, as well. If they cannot present you a copy, then demand that they cease and desist from any more collections through you. I'm fairly sure this information is correct and as I said before, there are laws in place to protect consumers like you from overzealous collectors. Remember, these people are working for a bonus on successful collection. Look at it this way, they can either get 100% of zero or the 50% of what was owed or worst case scenario, 50% of what is left. I think, however, that once you ask them to provide you proof of the alleged debt, they will simply stop trying to collect since I really doubt they have a copy of the lease. Good luck! Really this is pretty simple, straightforward and easy to rectify.