Repair Credit Report Help

Should I pay on old item on my credit report or dispute it?

I have a new item on my credit report from Calvary Portfolio services for 57 dollars from Sprint. I have not been a Sprint customer for over 4 years. Should I pay this 57 dollars or should I try to dispute it? What are my chances with this dispute? Is the fact that its such a small number make it more likely that it will just be dropped? I find it ridiculous that such a small figure is ruining my score. I was a Sprint customer at one point and my guess is that this was the last bill after switching from Sprint to Cingular that I didn't realize they were still charging me for, but I had no information about it until I checked on my credit a few weeks ago.

Public Comments

1. Do you still know your old Sprint account number? If so, mail them a letter stating the account number the amount owed, and the payment. Ask for a receipt, or once the check clears, retain the copy. Then write a letter to the collector and the bureaus stating that "Account settled with original creditor", along with a photocopy of the cleared check. It should go away. If that doesn't work, write to the collection agency and offer to settle in full if they agree to delete the debt. Don't sign your name to any documents though, as they like to copy your signature to other documents (illegally!). Once your check clears, immediately dispute it with the bureaus and the collection agency. Send copies of their agreement and your cleared check. Good luck
2. For this small amount, I would pay it, Companies send charge-offs for as little as $7.00, it that company doesn't collect, another collection agency will take over the debt, so then you have Calvary Portfolio, and Acme Collections, it snowballs, taking your credit with you. It's too much hassle to dispute, if you did have an account and acknowledge the possiblity that it might have been the final bill overlooked by you.
3. First of all dont be in a rush and research this in a bit more detail. 1. The question you have to ask is "do you really owe this amount to Sprint or not". It is quite possible that this is a billing error in which case you have the right to dispute and there is no reason to give up that right. Did they even send you a statement? Did they send the statement to the right address? You have the right to ask for one and you should if you don't know what it is for. There is a difference between "refusal to pay" and "disputing a charge that you don't recognize". The right thing to do - is to pay - if you owe it (see points 4 and 5 below). 2. I repeat again - know your State and federal rights as a consumer (just do a google search, check budhibbs.com - this is TX oriented). Once disputed, they must provide you with a written statement detailing the nature of the charges and proof that you really owe this money. If you are disputing, dispute in writing - certified mail with return receipt, keep copies with you. 3. $57 is NOT a small amount for a debt collector that may purchase this for pennies on the dollar - and they will harass you to no end. Read creditboards.com (forums) to read some horror stories of how, or again you can google debt collectors and you will learn more. They will not stop at collecting $57, eventually this can escalate - fees, interest etc., and it can still show up in the credit report as collections .... 4. Do not be under the impression that if you pay this off, it will come right off the credit report. If you are planning to pay this off, then negotiate a "pay for delete". If at all possible work with the original creditor (in your case, Sprint) and not the collection agency. Still it is better to show something as paid, rather than still outstanding. 5. If you are paying, pay only with a money order, sent by certified mail, with return receipt. Keep these copies with you, for a long time (the money order receipt, the returned green card - receipt). Never, ever, never, send a collection agency a check - pay by credit card, or discuss anything with them over the phone. Check Bud Hibbs' view of Cavalry Portfolio services (http://www.budhibbs.com/debtcollectorpages/cavalry_recoveries.htm) Dont even think about sending them copies of checks either. Another website/forum you can check is debtconsolidationcare.com (you can find sample letters for dispute/validation letter, sample pay for delete request etc.). Before anything, I would first opt out from the credit reporting agencies, delete old addresses in your report. Then I would contact Sprint - verify with them if there is an amount outstanding - ask them for a statement - validate the charges - then pay them directly (but be sure to discuss pay for delete). Be sure to visit/read through the many forums on this topic and learn from people's experiences first. A few days spent on this is well worth it. Hope this helps. PS: Added later an excerpt from someone about Cavalry at the Bud Hibbs' website (http://www.budhibbs.com/debtcollectorpages/cavalry_recoveries.htm) "Date: October 26, 2005 Doing a bit of research I notice that Cavalry seems to be coming up with quite a lot of old Sprint and AT&T "accounts". They claim I had a Sprint account in about 2000 or 2001. Since the statute of limitations in my state (Texas) is 4 years, they illegally re-aged the account on my Experian credit report. I looked at the Arizona BBB, and even they said that Cavalry is an unacceptable company. I believe the reason companies such as this continue to break the law, etc is that they can get away with it. This is because most people don't know their rights. -Everyone- who is victimized by companies such as Cavalry should sue because of violations of the FDCPA. You can be certain there'll be violations. When everyone who has violations committed against them sues, companies such as Cavalry will quickly go under."