Ignored debt damages credit scores severely

Not referring to this situation but, I don't understand why a credit rating should stop you from getting a job. The way things are going today with people loosing their jobs,(in many cases with little notice) I would think there would be a lot of people out there with a credit problem. Or do employers take that into consideration?

I think by paying an invalid debt, you are acknowledging its validity. Thus there was a dispute and the company seeking the payment was right, and the consumer is just a slow payer.

Second if the collection company can be bribed or the collectee wishes to extort a clean credit report ie, removal of the damaging claims reported to the bureaus, fine. This is simply a mechanism to an end. But this defy's the legitamcy of the credit reporting system.

Lastly if this is your only disput in your credit file I would guess that this is less than a 60pt ding to your credit and this would diminish over two years to 25pt. But each time the collection agency renews the collection with the bureaus it then may increase to 60pt lose again. Also the brueaus may start the 7 years and gone timer from the last renewal date of the claimed colletion update. But this is some thing you can dispute with them as to when the debt was acquired.