The Frugal Creditnista

My Collection was able to validate the debt, should I pay it?

Hey Hey It's Q & A Friday!!!

Q: I sent a validation letter to a collection agency and they were able to provide me with the original signed contract, all of the billing statements, and their registration number with my state.
I've heard to never pay a collection agency, so should I just ignore this or pay it?

A: What you have here is a fully validated debt. The information they have sent you to validate the debt can be provided to a judge to prove the debt as well; which means they will easily win a judgment against you.
If the account is within your state's statute of limitation, pay it. I'd try to settle for a lower amount, but the last thing you want to do is to ignore this, have them sue you, win, and have a public record that will last for 10-20 years and the power to garnish wages, levy bank accounts and put a lien on your assets, so not worth it!

Hope this helps 🙂

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