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I spent over a certain amount on my credit card, they in tern put my card on hold to call to make sure it wasn’t stolen. I receive a call about 3 months later from 24 Hour fitness stating the dilemma. I tell them to go ahead and process the payment twice. They apparently couldn’t and today I call again to settle the problem and find they have already sent this to collection. Should I still pay them even though It went to collections? How bad is this on my credit. I have never had anything go to collections. What should I do? I really don’t want to pay them now if I DONT HAVE TO, I also canceled my membership. What is you advice?

4 Thoughts on What should I do If 24 hour fitness turned about $130 over to collections? Should I still pay them?
  1. Reply
    CatDad
    November 27, 2012 at 12:30 pm

    If you don’t pay your credit rating will be damaged.

    You may be able to negotiate the complete removal of non credit card debts like defaulted cell, health club, utility bills etc. from your credit report with a Pay for Delete agreement. This is a written agreement where you get a signed agreement from the debt collector (PRIOR to making any payment) where they offer to remove the negative items from your credit files after an agreed-to amount is paid. They will NOT want to do this….all they want is your money and their commission and they could not care less about your credit rating….Still, you have something they want (money) and that puts you in a position to negotiate on this issue. Example letter:

    I am willing to resolve this issue if your firm sends me a written agreement that you will remove all negative notations from my credit report after the agreed-to amount is paid to you. Upon receipt of this letter I will mail you a USPS money order for this amount.
    ———————————-
    Again, they are not going to want to do this…if they simply refuse to remove it, then you want to negotiate that they will update your credit report to “Paid in Full.” . You DO NOT want them to put “settled” on your credit report, as that’s a negative factor….

  2. Reply
    Dixie Darlin'
    November 27, 2012 at 12:49 pm

    A account that is in collections will be reported on your credit report for 7 years. This is a serious hit on your credit score.

    If the debt has been sold to the collection agency, then the only way to improve your credit will be to negotiate a “pay for deletion” agreement with the debt collector. This means that i exchange for payment in full they agree to completely remove the account from your credit report.

    If they agree, get it in writing signed by an authorized agent of the collection agency, before you mail them a money order for the total.

  3. Reply
    Heather
    November 27, 2012 at 12:55 pm

    It’s no secret – debt collection accounts don’t look good on your credit report and they take away credit score points. The damage is already a part of your credit report. You need to pay it off and work on rebuilding a good credit rating.

    It is generally in your best interest to settle your debts as quickly as possible. Before obtaining a court judgment, a bill collector generally has only one way of getting paid: Demand payment by calling you and sending you threatening letters. If you refuse, the collector can’t do much else short of suing you. Once the collector (or creditor) does sue and gets a judgment, however, you can expect more aggressive collections actions:

    If you have a job, the collector will try to garnish up to 25% of your net wages.
    The collector also may try to seize any bank or other deposit accounts you have.
    If you own real property (real estate), the collector will probably record a lien, which will have to be paid when you sell or refinance your property.

    The longer you take to pay off your debt, the more money you will owe.

  4. Reply
    David Z
    November 27, 2012 at 1:40 pm

    if you owe the money then pay them

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