# Does paying debt collection agencies "money owed" actually change anything? **URL:** \ **Category:** Factual Questions\ **Created:** [July 24, 2019, 11:40pm UTC](https://boards.straightdope.com/t/does-paying-debt-collection-agencies-money-owed-actually-change-anything/837577 "2019-07-24T23:40:04Z")\ **Posts on this page:** 10\ **Page:** 2
**Author:** ![MrFloppy](https://avatars.discourse-cdn.com/v4/letter/m/43a26b/32.png) [@MrFloppy](https://boards.straightdope.com/u/MrFloppy)\ **Post date:** [July 26, 2019, 4:32pm UTC](https://boards.straightdope.com/t/does-paying-debt-collection-agencies-money-owed-actually-change-anything/837577/21 "2019-07-26T16:32:29Z")
> [@lingyi](#): > > If you haven’t already done so, pull your FICO credit report, you can get it free once a year. Check to see if your debt is there. As I recall, it only shows the amount owed 120 days, not how much is currently owed. If you just have one or two accounts over 120 days past due, they’ve already dinged your credit score as much as it ever well. Note that while most negative items on our report will fall off after seven years (including credit cards), the debts are still owed. There are several free services out there. I use Credit Karma. I won’t link to it as I don’t want to be accused of shilling but I’ve used that site for a few years now and it gives you both your Equifax and Transunion scores, shows hard inquiries, late payment history and all that kind of good stuff. Has a mobile app too. ---
**Author:** ![Ravenman](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/ravenman/32/2929_2.png) [@Ravenman](https://boards.straightdope.com/u/Ravenman)\ **Post date:** [July 26, 2019, 5:02pm UTC](https://boards.straightdope.com/t/does-paying-debt-collection-agencies-money-owed-actually-change-anything/837577/22 "2019-07-26T17:02:55Z")
I know this isn’t a GQ answer to the question, but this story about dealing the debt collectors is a classic: > **[532: Magic Words - This American Life](https://www.thisamericanlife.org/532/transcript)** ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [July 26, 2019, 7:23pm UTC](https://boards.straightdope.com/t/does-paying-debt-collection-agencies-money-owed-actually-change-anything/837577/23 "2019-07-26T19:23:12Z")
> [@Bill\_Door](#): > > If a debt has been outstanding long enough that the statute of limitations has expired so that the creditor can no longer sue you making a payment on that debt may start the clock ticking again and put you at risk of a lawsuit. Make sure a debt is collectable before making any payments to anyone. Yes, dont pay off this sort of debt older than the SOL or within a year of expiring. ianal, ymmv. If it is fairly new, and they will accept half and agree it will come of your credit report- get that in writing- then maybe. ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [July 26, 2019, 7:24pm UTC](https://boards.straightdope.com/t/does-paying-debt-collection-agencies-money-owed-actually-change-anything/837577/24 "2019-07-26T19:24:45Z")
> [@slash2k](#): > > cite? I’ve heard this repeatedly, but nobody has been able to point me to a law or court case in which an expired clock restarted on a debt. The clock doesnt restart for that, but it can restart for your credit report. ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [July 26, 2019, 7:26pm UTC](https://boards.straightdope.com/t/does-paying-debt-collection-agencies-money-owed-actually-change-anything/837577/25 "2019-07-26T19:26:27Z")
> [@slash2k](#): > > No, you’re not. > > If the debt has been sold to Bottom-Feeder Collections, they step into your original creditor’s shoes and have the same rights and abilities to collect. Assuming it’s a valid debt and still within the statute of limitations, they can obtain a judgment against you and use your state’s collection methods (garnishing your wages, seizing your car, putting a lien on your property, raiding your bank account, or whatever else your state’s laws permit). Failing to deal with them will just increase the costs associated with the debt as they add on fees and/or interest. > … However, just sending Bottom-Feeder Collections a letter saying you dispute the debt usually ends all that, since they rarely have any proof of debt. Since of course, may times there is no legit debt. ---
**Author:** ![Czarcasm](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/czarcasm/32/4050_2.png) [@Czarcasm](https://boards.straightdope.com/u/Czarcasm)\ **Post date:** [July 26, 2019, 7:28pm UTC](https://boards.straightdope.com/t/does-paying-debt-collection-agencies-money-owed-actually-change-anything/837577/26 "2019-07-26T19:28:22Z")
> [@DrDeth](#): > > However, just sending Bottom-Feeder Collections a letter saying you dispute the debt usually ends all that, since they rarely have any proof of debt. Since of course, may times there is no legit debt. If they bought the debt off the original company, they will have plenty of proof. ---
**Author:** ![Ravenman](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/ravenman/32/2929_2.png) [@Ravenman](https://boards.straightdope.com/u/Ravenman)\ **Post date:** [July 26, 2019, 7:35pm UTC](https://boards.straightdope.com/t/does-paying-debt-collection-agencies-money-owed-actually-change-anything/837577/27 "2019-07-26T19:35:39Z")
> [@Czarcasm](#): > > If they bought the debt off the original company, they will have plenty of proof. Read my link. It sounds like the “proof” of a debt existing sometimes (often?) consists of a spreadsheet with a name, address, and dollar amount. No contracts, no itemized transactions, no other documents. ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [July 26, 2019, 7:43pm UTC](https://boards.straightdope.com/t/does-paying-debt-collection-agencies-money-owed-actually-change-anything/837577/28 "2019-07-26T19:43:36Z")
> [@Ravenman](#): > > Read my link. It sounds like the “proof” of a debt existing sometimes (often?) consists of a spreadsheet with a name, address, and dollar amount. No contracts, no itemized transactions, no other documents. Yep, that’s pretty common. Maybe a phone number etc, but no signed contracts, etc- that stuff is just too much trouble. ---
**Author:** ![lingyi](https://avatars.discourse-cdn.com/v4/letter/l/d2c977/32.png) [@lingyi](https://boards.straightdope.com/u/lingyi)\ **Post date:** [July 26, 2019, 9:50pm UTC](https://boards.straightdope.com/t/does-paying-debt-collection-agencies-money-owed-actually-change-anything/837577/29 "2019-07-26T21:50:40Z")
Below is a list of Debt Statute of Limitations for the 50 states (note that some are longer than 7 years): [https://www.thebalance.com/state-by-state-list-of-statute-of-limitations-on-debt-960881](https://www.thebalance.com/state-by-state-list-of-statute-of-limitations-on-debt-960881) and this link is about what debt collectors can and can’t do, and what to do to about it: [https://www.thebalance.com/what-you-should-know-about-time-barred-debts-960567](https://www.thebalance.com/what-you-should-know-about-time-barred-debts-960567) ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [May 5, 2020, 8:05pm UTC](https://boards.straightdope.com/t/does-paying-debt-collection-agencies-money-owed-actually-change-anything/837577/31 "2020-05-05T20:05:17Z")
> [@MrMaheu1983](#): > > Actually the debt agencies can be very helpful. I used such services a couple of times. I own a small business and I work mostly on the B2B market. So, because of a lot of unpaid invoices, my business could have gone bankrupt. I didn’t find another solution than to hire an [international debt collection agency](https://www.federalmanagement.co.uk/) in order to receive the money. Of course, the agency received a commission of 6% from the recovered funds but it was worthy, as my business had enough resources to continue the activity. So, I would say that the debt collection agencies can be very efficient, however, it’s important to choose a reliable agency. Yes, but you are likely talking about debts that are both _real_ and _recent_. And it’s B2B. Most _consumers_ get hit from dishonest debt collectors for debts that are not recent or not real or both. A common thing being a 6 year old debt that started as $15 but is now $1000 and is dubious. [Previous page](https://boards.straightdope.com/t/does-paying-debt-collection-agencies-money-owed-actually-change-anything/837577.md?page=1)