Personal Finance

Should I pay debt that does not belong to me?

  • Last Updated:
  • Feb 12th, 2019 8:26 pm
[OP]
Newbie
Jan 7, 2016
30 posts
6 upvotes
Calgary, AB

Should I pay debt that does not belong to me?

I am looking to obtain a mortgage in 3-5 years and have debt of 2000 from a credit card in which purchases were fraud and the bank refused to dispute the charges. It is currently sitting in collections and the damage to my credit score has already been done. Is it possible for me to pay at a negotiated lower amount and for the collections agency to mark it as "Paid in full"?

What are my other options if this is not possible?
11 replies
Deal Fanatic
Feb 15, 2006
7712 posts
2120 upvotes
Toronto
xlittoninjax wrote:
Feb 11th, 2019 10:55 am
I am looking to obtain a mortgage in 3-5 years and have debt of 2000 from a credit card in which purchases were fraud and the bank refused to dispute the charges. It is currently sitting in collections and the damage to my credit score has already been done. Is it possible for me to pay at a negotiated lower amount and for the collections agency to mark it as "Paid in full"?

What are my other options if this is not possible?
If you could not convince the bank that the $2000 on your CC was fraud, then you are on the hook. Other banks would not have sympathy, as they only see a bad record/score.

You could contact the original bank and/or collection to negotiate something. You wouldn't know what the outcome can be until you tried.
Deal Addict
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Oct 13, 2007
2155 posts
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Edmonton
xlittoninjax wrote:
Feb 11th, 2019 10:55 am
I am looking to obtain a mortgage in 3-5 years and have debt of 2000 from a credit card in which purchases were fraud and the bank refused to dispute the charges. It is currently sitting in collections and the damage to my credit score has already been done. Is it possible for me to pay at a negotiated lower amount and for the collections agency to mark it as "Paid in full"?

What are my other options if this is not possible?
Must be more to the story. Credit cards are typically 0% liability.

It's tough to offer proper help without the full story.
Deal Addict
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Jan 28, 2007
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starchoice wrote:
Feb 11th, 2019 5:40 pm
Must be more to the story. Credit cards are typically 0% liability.

It's tough to offer proper help without the full story.
Ya, my thoughts too ... anytime I have had a charge that I have contested, the CC was very quick to either offer clarity to whom the charge was credited to (often a case of DBA another name) or removed it completely and dealt with it on their own.

If a bank/CC company refuses to remove it, it tells me that the OP has more to do with the charge then being told to us
Deal Fanatic
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Mar 23, 2008
7970 posts
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Edmonton
Stuff happens. Case in point:
https://www.google.ca/amp/s/www.cbc.ca/amp/1.4256154

To the OP, there’s no “pay to delete” here in Canada. You could offer to pay a reduced amount, but it would still be a black mark on your credit report. But probably better a “paid collections” instead of “unpaid collections”.

C
Deal Addict
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Jan 28, 2007
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Slightly off topic, but make sure you sign up for instant notifications on your CC's ... I get instant emails sent to me on any preauthorizations and charges as soon as they happen as a security measure.
It brings to your attention every charge that hits your account.
[OP]
Newbie
Jan 7, 2016
30 posts
6 upvotes
Calgary, AB
Jojo_Madman wrote:
Feb 11th, 2019 6:08 pm
Ya, my thoughts too ... anytime I have had a charge that I have contested, the CC was very quick to either offer clarity to whom the charge was credited to (often a case of DBA another name) or removed it completely and dealt with it on their own.

If a bank/CC company refuses to remove it, it tells me that the OP has more to do with the charge then being told to us
What happened was I was signed up for paperless billing and the card was open but inactive for 6 months prior. Fraud occurred on my card and I did not notice as I was on paperless billing (no notifications were sent to my email). I noticed the charges were not mine after 90 days when they decided to mail me a paper statement but 90 days was over the period they can dispute charges. I have since switched every single one of my bills to be sent via mail.
Last edited by xlittoninjax on Feb 12th, 2019 4:27 pm, edited 1 time in total.
[OP]
Newbie
Jan 7, 2016
30 posts
6 upvotes
Calgary, AB
Jojo_Madman wrote:
Feb 11th, 2019 7:19 pm
Slightly off topic, but make sure you sign up for instant notifications on your CC's ... I get instant emails sent to me on any preauthorizations and charges as soon as they happen as a security measure.
It brings to your attention every charge that hits your account.
I did this as soon as this happened to me.
Deal Addict
User avatar
Jan 28, 2007
1033 posts
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xlittoninjax wrote:
Feb 12th, 2019 4:26 pm
What happened was I was signed up for paperless billing and the card was open but inactive for 6 months prior. Fraud occurred on my card and I did not notice as I was on paperless billing (no notifications were sent to my email). I noticed the charges were not mine after 90 days when they decided to mail me a paper statement but 90 days was over the period they can dispute charges. I have since switched every single one of my bills to be sent via mail.
One very good reason you don't just leave active CC accounts just sitting. If we are using one even bi-monthly we close it down ... I will deliberately alternate between my cards to keep them active and monitored.
Newbie
User avatar
Jan 7, 2019
47 posts
29 upvotes
xlittoninjax wrote:
Feb 12th, 2019 4:26 pm
What happened was I was signed up for paperless billing and the card was open but inactive for 6 months prior. Fraud occurred on my card and I did not notice as I was on paperless billing (no notifications were sent to my email). I noticed the charges were not mine after 90 days when they decided to mail me a paper statement but 90 days was over the period they can dispute charges. I have since switched every single one of my bills to be sent via mail.
Banks will look at your repayment history. If this incident is an isolated event, you will be able to proceed with your mortgage application. Of course, they will ask that you pay this off in full and provide proof in the form of a letter from the credit card company.

Hope your overall credit payment history is spotless aside from this one time.
Deal Addict
May 15, 2013
1438 posts
275 upvotes
Montreal
starchoice wrote:
Feb 11th, 2019 5:40 pm
Must be more to the story. Credit cards are typically 0% liability.

It's tough to offer proper help without the full story.
What's the difference? The fact and reality is that his debt is now in collection and wants a mortgage...
Sr. Member
Nov 8, 2017
743 posts
331 upvotes
Jojo_Madman wrote:
Feb 12th, 2019 4:49 pm
One very good reason you don't just leave active CC accounts just sitting. If we are using one even bi-monthly we close it down ... I will deliberately alternate between my cards to keep them active and monitored.
Me too. I have 5, 2 I use every day, the 3 other, I use once a month

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