Got sent to collections. Anything I should know before paying it off?

Quote from Mr.Ritz : Got sent to collections over 100 dollars for not returning equipment. I moved and they had no way to mail it in. It was drop off only and I was about 100 miles from the location. Anyway, their are tons of terms and agreements on the back of the notice and I don't want to screw myself by sending a check in for the full amount.

Pay the agency using a money order. NEVER pay a collection agency by check. You do not want them to have your checking account routing numbers.

Also, before you pay them, make sure you have something in writing that payment of that $100 will constitute payment in full. Don't pay them a penny until and unless you have this in writing.

Offer to settle for $50. They will most likely take it.

contact the company you owe the 100 to, explain you moved. Maybe they will agree to remove the item from collections if you pay immediately. Get it in writing.

Quote from SlickDilla : contact the company you owe the 100 to, explain you moved. Maybe they will agree to remove the item from collections if you pay immediately. Get it in writing.

Quote from Brian1 : Pay the agency using a money order. NEVER pay a collection agency by check. You do not want them to have your checking account routing numbers. Also, before you pay them, make sure you have something in writing that payment of that $100 will constitute payment in full. Don't pay them a penny until and unless you have this in writing.

I had to pay collections when I was younger for ripping someone off on ebay. It was only for $67. I knew I was at fault so I paid it. It was with a check...never had any issues. Maybe I was just lucky?

Quote from SlickDilla : contact the company you owe the 100 to, explain you moved. Maybe they will agree to remove the item from collections if you pay immediately. Get it in writing.

Its through the cable company and it says its a department within the cable company. Will they really remove it from collections of I pay it?

Quote from Mr.Ritz : Will they really remove it from collections of I pay it?

they don't care as long as they get their money, if they get their money via collections, it's pennies on the dollar, so they have an incentive to work with you.. and it dosen't hurt to ask, but like the above said, get it in writing (a chat log most likely won't hold water as the CSR's aren't policy makers)

Here's the deal.

If you try to negotiate a lower amount than what you owe, it will almost certainly show up as a "settled" account. This is NOT good and is just as bad (almost) as not paying it at all. Paying off the full amount and having it marked as Paid In Full (PIF) is still bad on your credit report, since the negative mark will last for seven (depending on the state) years. While it's better than an open delinquency, it's still going to hurt your score.

The BEST thing you can do is to negotiate the complete removal of the collection account from your report(s). Sometimes this can be done with only the collection agency, other times they need to get permission from the original creditor.

At $100, there is no reason not to pay in full, but you also have little ammunition for bargaining for the removal. If you had $1000 or $10,000 debts, that is actually easier.

First, try to talk to the original creditor. Some can remove it from collections and let you pay it off with them and remove the negative mark. Others refuse to do this once it's sent to collections - usually the larger companies where they've already written it off.

Your options depend on how it was sent to collections. Some will commission a collections company to collect it for them, for a percentage. Others will just sell it off. The latter alllows you to negotiate directly with the collections company.

Do NOT take no for an answer. Ask for a supervisor. Demand, in writing, that the account will be removed from your CRs if you pay it off in full. Once you do, pay it in full with a traceable method of payment.

I have done this numerous times, for others, with 99% success in having accounts removed completely. Once that's done, your score is as good as before.

Good luck.

How bad would 100 dollars on collections hurt my score by the way.. I had pretty much perfect before

I've dealt with collections agencies before. Using a money order, and not a check, is an interesting suggestion. But using a check gives you the opportunity to have proof that payment was made and accepted (the canceled check).
Pay the full $100, do not try to negotiate for a lower amount. If you were to, it would show up as 'Settled' as phonic said. If the owed amount were something that you wouldn't be able to pay, then paying a negotiated settlement is better than not paying. But paying in full is the best option. Even if you were to contact the original creditor and got them to drop the debt, the debt is now owned by the collections agency so they will still pursue you for the money. Take the hit and make it right.
On a side note, moving 100 miles away sounds like a lame excuse for not returning equipment. A 200 mile drive would have been much better than the situation you are in now.

Quote from Mr.Ritz : Got sent to collections over 100 dollars for not returning equipment. I moved and they had no way to mail it in. It was drop off only and I was about 100 miles from the location. Anyway, their are tons of terms and agreements on the back of the notice and I don't want to screw myself by sending a check in for the full amount.

First, contact the company that you owe the $100 dollars to. Explain to them your situation, that you moved, that the matter slipped your mine, etc. See if they will take it out of collections first, before contacting the collections company. If they won't, contact the collections company and ask them what you need to pay off the debt in full. Ask them to send you a written statement saying that x amount is owed for the debt to be paid in full. Keep copies of everything. When you receive the statement, pay it with a money order, and then make sure you get a receipt that states paid in full on it.

What company is it?

Quote from heavylee : I've dealt with collections agencies before. Using a money order, and not a check, is an interesting suggestion. But using a check gives you the opportunity to have proof that payment was made and accepted (the canceled check). Pay the full $100, do not try to negotiate for a lower amount. If you were to, it would show up as 'Settled' as phonic said. If the owed amount were something that you wouldn't be able to pay, then paying a negotiated settlement is better than not paying. But paying in full is the best option. Even if you were to contact the original creditor and got them to drop the debt, the debt is now owned by the collections agency so they will still pursue you for the money. Take the hit and make it right. On a side note, moving 100 miles away sounds like a lame excuse for not returning equipment. A 200 mile drive would have been much better than the situation you are in now.

couldn't he have returned the equipment before he moved?