Legal Question in Credit and Debt Law in California

Debt Collections - What if pay in full?
I discovered that I had a bill sent to collections that I was not aware of. I am now trying to buy a home and am very eager to pay off this $380 collections bill. I've heard that I can 'negotiate' with a collector to have a negative collection removed from my record.

Here are my two questions:

1) I called the debt collector today and they said that they are not allowed to remove the record from credit reports? Is this true? Or if they wanted to could they actually have it removed?

2) In the event that they couldn't do that, I asked them to send me something in writing stating that if I pay the full amount the collection would be reported as ''Paid'' (instead of something like collected or settled). They told me that they did not have such a letter to furnish since it was FTC law that they HAD to mark it as paid if I paid in full. I have tried searching legal codes and can't find anything that says that. Is this true? If so, does anyone know the code or where I can see the law in writing?

Thank you!

Asked on 2/15/08, 2:41 pm

Jonathan Stein Law Offices of Jonathan G. Stein

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Re: Debt Collections - What if pay in full?

1. False. They can remove it.

2. False. They do have a letter.

Answered on 2/15/08, 3:20 pm

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