Is it possible to contact a Collection Agency and settle with them to remove themselves from our report if we pay in full?
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Good luck if that's what you decide to do. You may hurt your credit score even more depending upon how old the debt is. Say the debt is 3 years old, the date of last activity reflects that. However, if you pay the debt now your resetting the date of last activity clock for another 7-10 years depending on how it's reflected on your report. Plus, the Collection Agency may or may not control the black mark on your report. It still may be listed under the original creditor as "Charged off" or "Transferred/Sold". We had many Collection Agencies contact us for bad debts before filing but after reviewing our credit report, there isn't a report made by the Collection Agency.
You'd have to contact the original creditor and negotiate that they remove the old debt. However, from everything I've read on repairing your credit score the original creditor may or may not work with you. And even if they do remove the notation from your report it's entirely possible that it may show up again later.
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