Basically, I received a letter from a collection agency on a debt. I couldn't figure out what the debt was at first. They listed Bank One as the original credit company, and I've never done business with them.
I did some research and it appears this was a debt from 13 years ago, off an old store credit card(guess it was sold to Bank One eventually, was not backed by them when I had it).
So apparently, this $245 debt eventually became a judgement...except I was never notified. The records indicate they sent the letters to an address that I haven't lived at for over 10 years...so I was long gone when they tried to contact me about 8 years ago.
Obviously, this thing is not on my credit report, as it aged off quite some time ago. But in Ohio, you have 15 years to attempt to collect(this varies by state). So now this judgement/debt was sold to a new collections agency who has tracked me down.
I have no issues paying the debt...I didn't know it existed. But I have two concerns. One, they've inflated it to like $1700 and are offering a buyout of $750. That's a bit absurd. Second, some of my friends are suggesting that if I do pay this off, it could re-appear on my credit report. That's the part that concerns me.
Does anyone know if you pay off a judgement/debt that had already dropped off your credit report, can the payment cause it to reappear? I just ran my credit report to verify it is NOT there right now. I have two dings only(one from 6.5years ago about to drop and one from 5 years ago, but is very minor). This one isn't there. I actually don't ever remember seeing this one since I started tracking this stuff more religiously about 5 years ago.
If I negotiate them down to a reasonable amount and just pay it off...will my credit get the ding? Or do I have to somehow try to fight the judgement on the grounds that this case from years ago, never properly notified me so I could defend myself? Do I even want to do that?