Thread: agency trying to collect debt after it left my report

Hi guys,

I previously had an unpaid credit card balance that had been sitting on my report for a long time. It went to collections and the company harassed me for a bit, but because I didn't have any money at the time, I couldn't pay the debt. I got a new job in January and have been able to pull myself out of the rest of my debts, with this one lingering. However, it hit the 7 year mark in April, and when I pulled a credit report in June, it had been removed from my credit report. Naturally, I had a moment of euphoria at finally being debt free.

With this debt finally off my report, I had a clean report and a credit score of 710. With that score, and having thought that my credit was finally fixed, I worked with a mortgage broker and am interested in buying a house in my area.

Today, in the mail, I just received a letter from the collections agency (Cavalry Portfolio) with a lot of flashy jingoism on it, claiming to be a "Fresh Start Program" and offering to take 30 percent off the original debt amount.

I had thought the debt cleared, as it had been 7 years since the last action on the account and my June report did not have this debt listed anymore. I can't check my report now because my realtor has stated that I shouldn't let anyone pull my credit report now as it might affect my mortgage.

My first instinct, which I resisted, was to call the collections agency and ask wtf, but I thought it might be wiser to get some information here before doing that. I'm worried that this will hurt my chances to get final approval for my mortgage, and I feel like I'm in over my head with this.

What are my options here, and what options do I have if I go through with my mortgage and this pops up to sabotage my report?