[motherof3]

I had a macy's credit card with a $700 limit, I fell behind in payments so of course with late fees and interest it is now $1008.00. A collection company called me and said if I make at least a $200 payment a month they will reopen the account once paid off and the limit will be $1008, Does this sound funny to anyone, I had bad credit with them why would they open it for me with a higher limit. I guess I want to know if this collection company is for real?

[ScottGem]

They are for real, but what they want is for you to pay something on the account which resets the SOL so they can then obtain a judgement against you. Do not pay them anything unless you can pay in full. Check the laws where you are, even offerring to pay might start the SOL again.

Ask them to verify the debt. Tell them, that if they provide proof, you would consider paying half the owed amount to settle the account (assuming you can do that).

[motherof3]

I do want to pay them, I am trying to fix my credit, I just do not understand why they would offer me a higher limit when I screwed up my account with them. I would never use the account again the interest is way too high. If its open with a zero balance is that better on my credit?

[ScottGem]

Maybe, it could count as too much available credit for you. Like I said, you should offer to settle for a lumpsum of half what's owed.

[motherof3]

Thank you