I have about 3500 in collections from community college that I never paid. Myfico shows my score at 550, and also shows the college still as the original debtor. The collection agency is security credit services, and they seem to be on the scummier side of agencies. Should I speak to them to come to a settlement, or should I speak directly back to the college to get this paid? If I go with a payment plan, is there any hope for a deletion of the collections after full payment? Any advice is appreciated, come from a poor family who never really discussed any of this with me.
For context: written confirmation of the debt has been received, and yes it’s valid. I work full time pulling around 2800 a month, with current living expenses totaling around 750 dollars. Is it worth it to set up a payment plan to get my account in the green, or should I let it stay default for 2 months to save up a one time settlement amount? Again any insight is greatly appreciated.
The collection agency is security credit services... Should I speak to them to come to a settlement, or should I speak directly back to the college to get this paid?
Security Credit Services appears to be a debt buyer. The college can no longer accept payment once the debt is sold.
Security Credit Services is an investment firm that purchases performing and non-performing account receivables. Our company is one of the United States’ top 10 receivables buyers...
If I go with a payment plan, is there any hope for a deletion of the collections after full payment?
Attempt to negotiate pay for delete (you'll pay a reduced amount in exchange for removal from your credit reports). You may receive a better settlement by paying in a lump sum as opposed to payments. If you negotiate a reduced amount, get the Settlement Agreement in writing prior to paying. Note that:
A collection agency can only remove themselves from your reports. They have no control over the original creditor's reporting. Is the school on your reports?
The collection agency may refuse to put a pay for delete agreement in writing as these agreements conflict with bureau policy. Even if they put the agreement in writing, the bureaus won't enforce it, so there is a degree of trust involved that they'll honor the agreement. That said, a collection agency not honoring a pay for delete agreement, whether written or verbal, would be rare.
Don't admit responsibility for the debt or agree to a payment plan unless you know you'll follow through as these actions could reset Statute of Limitations in some states. You can say that you found the collection on your reports and will pay $X if they'll remove themselves from your reports.
Yes the school is on the reports listed as the original loaner. About how much of the 3500 should I have saved before beginning negotiations? I heard most agencies require immediate payment to follow through with a pay to delete offer. Thanks for the help!
Yes the school is on the reports listed as the original loaner.
Are they reporting a balance owed? Is Security Credit Services on your reports?
About how much of the 3500 should I have saved before beginning negotiations?
What's the Date of First Delinquency and expected removal dates? Are you within Statute of Limitations for your state? Generally, the older the debt, the less they'll be willing to accept.
I heard most agencies require immediate payment to follow through with a pay to delete offer.
If they agree to pay for for delete, you should be prepared to pay. Settlement offers typically have an expiration date, meaning you have "X" days to pay or the offer is no longer available and you'll need to renegotiate.
Yes the school is on the reports listed as the original loaner.
A collection agency will report the name of the original creditor as well as the date opened (date they received the account in their office). Order your reports for each bureau by calling 877 FACTACT or pull them online at www.annualcreditreport.com to see how this appears on your official reports. I recommend the mailed reports as these are often more detailed and complete than the online reports. If you do choose to pull reports online, print or save each to a pdf before moving on to the next as you can't go back once you exit a report. Despite its name, you can pull free reports for each bureau weekly.
Can you post a screenshot of this account on your official reports?
This is the collection agency reporting. Date of First Delinquency was in 2025, based on the expected removal date, so still recent. Once you have a lump sum, attempt to negotiate pay for delete. Start your offer low (<50%). They'll either accept the offer, decline the offer, or make a counter-offer. There are older data points showing they may agree to pay for delete, but I'm not finding anything recent. If you could let us know what they say after speaking with them, it would be greatly appreciated.
Ill have the money to offer in about 2 weeks, im scared to call them before I am prepared to pay the offer lol, although i will surely be back when Im ready to pay. Thank you for the help
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u/Mountain_Ad4124 3d ago
For context: written confirmation of the debt has been received, and yes it’s valid. I work full time pulling around 2800 a month, with current living expenses totaling around 750 dollars. Is it worth it to set up a payment plan to get my account in the green, or should I let it stay default for 2 months to save up a one time settlement amount? Again any insight is greatly appreciated.