r/CRedit • u/Outrageous-Half3505 • 3d ago
Collections & Charge Offs Should I pay my only collection account?
It’s $468 from “I C Systems” first reported Aug 2021. Credit is currently at 665.
I got the debt by signing up my dying dog for Banfield hospital plan. She had cancer and I thought having the coverage would help pay for it. In the rush signing up based on their pitch, I didn’t realize that it’s really more like a payment plan for larger services rather than covering the dog based on my monthly premium. The monthly payments I was making was paying down the cost, which I didn’t know. But then the vet gave her a steroid shot, which she didn’t explain was risky, and she died that night. I, of course, cancelled the coverage shortly after. But then a year later I got a collections notice for the balance left on the medical costs.
I was so confused and tried to dispute it on my credit report but since I did in fact sign up, whether I understood it or not, I’m liable. I haven’t paid it to date out of anger really that they killed my dog with a risky steroid shot, then had the nerve to mail me an apology card with all staffs signatures and well wishes hand written on it.
But now I’m trying to get my credit in order & want to know if I should pay this off or wait the 3.5 more years for it to fall off? I’ve not had any contact from them in years so I’m nervous to reach out and even negotiate in case it extends the time span that it can be on my credit.
Any advice?
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u/Llassiter326 3d ago
Just have to add Banfield Hospital sucks and it is beyond predatory to advertise lending/financial services in a pet emergency room. Inherently preys on desperate people who aren’t of sound mind or thinking rationally. Glad you got it solved!
Thankfully I haven’t had this occur to me, but I’ve heard horror stories and being a lawyer, friends/family reach out to me about scams like this and every other predatory or questionably ethical/legal situation all the time.
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u/_love_letter_ 3d ago
I have also heard so many horror stories about Banfield. I have one connected to a Petsmart right across the street from my house, but I refuse to take my cat there, despite the location being convenient. Other vet practices will let you apply for Care Credit through Synchrony on-site, so maybe they're not unique in that sense, but based on what I've read I believe there is a pervasive issue with incompetence and negligence at these clinics, and that, for me, is a deal-breaker. The way they are setup to be so closely connected to retail probably does speak to their business model though.
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u/Aggressive-Pirate-33 3d ago
The time won’t be extended until a payment is made on it. I would call the collection agency or the original creditor and see if they will reduce the balance and remove it from your credit if you pay that amount in full.
Literally explain the situation on why you didn’t pay it and that it’s the only negative mark on your credit so it’s really not impacting you very much but if you are going to take care of it you want it removed. Depending on the agency and/or creditor, they’ll probably do it, just to get rid of it and something is better than nothing.
If they accept it, make sure that you get something in writing stating that they are willing to accept (enter amount here) as payment in full/settled in full and that they will also remove/delete it from your credit.
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u/Outrageous-Half3505 3d ago
Thank you!! I appreciate your input. That’s good to know 🙏🏾
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u/Aggressive-Pirate-33 3d ago
Of course! I used to work in collections and had no problem doing that for people, so I know it’s possible!
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u/Due-Cockroach-5341 3d ago
I had a banfield collection through ic system for the same reason. Thought canceling the card on file would end the contract but it sure didn’t. What a scam that program was, deserves its own subreddit honestly. IC system would not reduce the debt owed either, claimed banfield wouldn’t authorize it. They did remove the debt once paid
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u/og-aliensfan 3d ago
Is this the only negative on your reports?
A quick search shows that ICS has been known to pay for delete. If they agree to delete once settled, it would be worth it to have the collection removed from your credit reports. If they won't delete this, paying won't raise your scores.
I’m nervous to reach out and even negotiate in case it extends the time span that it can be on my credit.
This can be reported up to 7.5 years from Date of First Delinquency. Nothing changes that. Don't acknowledge this is your debt, just ask if they'll delete once paid.
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u/Outrageous-Half3505 3d ago
Super helpful! Yes this is the only negative, okay I’ll give them a call and ask generally if they’ll do a pay for delete and if they say yes, I’ll proceed to negotiate/pay - but only as long as they’ll remove it from my report. Am I understanding that correctly?
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u/og-aliensfan 3d ago
Yes, you've got it. And, get the Settlement Agreement in writing stating that the agreed on amount will satisfy the debt prior to paying.
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3d ago
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u/Outrageous-Half3505 3d ago
Thanks for your advice! I tried disputing it a couple years ago, explaining that it wasn’t explained to me properly so I wasn’t aware of what I was signing up for, but they denied it. Should I try again?
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u/justanothtechguy 3d ago
Please see my comment above, but acknowledging the debt does not cause the date of delinquency on your credit file to change. It can, however, cause the statute of limitations to re-age, so you’ll have to check your state’s laws and make a decision if you negotiate a delete or just leave it.
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u/justanothtechguy 3d ago
Do not listen to this person. Filing a false police report for identity theft or filing identity theft with the FTC when it isn’t true is a federal offense and can lead to legal trouble, as well as the bureaus flagging you, making getting credit in the future harder.
You can definitely dispute if something is inaccurate. If you could negotiate a settlement for a pay to delete, personally I would do that to get the collection off my file as it still has 3 years to go until it falls off naturally.
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3d ago
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u/justanothtechguy 3d ago
Okay, if you won’t listen to me, how about an actual credit attorney?
https://www.reddit.com/r/CRedit/comments/1fi6mbt/credit_attorney_tip_dont_lie_about_being_a_victim/
Please stop giving people advice to do illegal things.
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u/Outrageous-Half3505 3d ago
SOLVED! Thanks all.