"And once you paid it out, you should contact a credit repair service and inquire about getting the whole "situation" removed from your credit report."

Uh, I wouldn't do this. Are you outside the statute of limitations for debt collections for your state? Check this before paying anyone a penny. Most places are 2-3 years. You are 4 years. Then, don't pay a penny regardless of the answer to statute of limitations question.

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1) Contact AT& T and ask for a copy of the bill.
2) Try to negotiate a settlement. Try to pay a percentage or else what is owing plus a small portion of penalty and interest.

They would rather get something rather than nothing. As well, for such a small amount collection agencies don't want to drag it out. They want to settle it quick and get their cut minimizing the time and cost they put into this so maximizing their profit.

"So_Now"...what did you do with this debt? I hope that you paid it. Let me explain my recommendation. As unfortunate as your situation is, a paid debt always looks better than an unpaid debt. There is a lot you are going to want to do in the future, too, that will depend on your credit (like buy a condo).

Since you do not have the documentation (although you can certainly request it and attempt to dispute it), I suggest that you pay it in full and request that it be reported to all three credit bureaus as such and get this in writing. Save this documentation in case you need it later. I would then follow-up with all three credit bureaus to make sure that this debt shows "paid in full" and now has a zero balance. Finally, keep track of when it is due to "fall-off" your credit reports which would be seven years from the date of delinquency - probably the first monthly payment that was missed that led-up to the collection activity, not the date it went to collection. So, you are correct in thinking you only have a few more years of it appearing on your credit report. There are some exceptions to the seven years, and bankruptcy information can be reported for 10 years.

Many people are hesitant to pay old bills because they fear it will re-start what is known as the "seven-year rule". To explain, the seven year rule is the standard method under the FCRA (Fair Credit Reporting Act) for reporting accurate negative information on your credit report. Generally, accurate negative information can only be reported for seven years from the date of the event or delinquency - not the date it goes to collection and not the date you paid it off. (Again there are some exceptions, and bankruptcy information can be reported for 10 years.) The only way a payment can give an old debt new life is if you make payment arrangements and then you miss a payment. This newly missed payment can then be reported for seven years.

I hope that helps. Feel free to contact me for any additional help and visit the "links" page on my website for the link to the Federal Trade Commission's (FTC) website. The FTC has many good consumer articles on debt, credit, and the various laws, including the publication "Credit and Your Consumer Rights" which is very helpful and also discusses the exceptions.

Good luck!
Kathy Jo

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Kathy Jo Pollack
Certified Life Coach, Trainer, & Speaker
Focusing on Financial Independence
www.kathyjopollack.com