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In reply to the discussion: Occupy Debt-Relief Campaign Buys $100,000 Worth of Medical Debt [View all]Bibliovore
(185 posts)But notifying the credit agencies would need to take place regardless, right? Writing the debt off would still prevent other/ongoing tracking.
Also, I know nothing about this, so a few questions about the debt-reporting process:
1) Is there a score difference for complete vs. partial vs. very low payoff amounts? If a large debt is renegotiated to a penny that's then collected, does that appear the same as if the original debt amount were paid in full? Does the remainder count as forgiven regardless?
2) How much discretion does the debt purchaser have in how to classify the handling of a debt? If they're writing off the debt, could they choose to report it as repaid (rather than forgiven) even if no money changes hands?
3) (possible Devil's advocate): Is there reason for concern about the resulting credit report's accuracy? That is, is it a possible problem for future lenders if borrowers' accounts show debt as paid off that they could not in fact afford? Is this affected by what the debt is for, e.g. health care vs. mortgage vs. credit-card bills?