If you sent the payment owed to the original creditor and they accept and cash the check, is the Collection Agency required by law to remove the derogatory marks they put on your credit report concerning the debt? The OC said they would take my payment but not remove off credit report- it will be shown as paid in full. How long should I wait if OC accepts the payment and funds are cashed to dispute with CA? 30 or 60 days?
No. You can request validation from the CA now. It makes no difference whether or when the OC negotiates your instrument. You should also dispute the tradeline with the credit reporting agency. The ideal method is as follows: 1) Request validation from the CA, 2) Wait about a month, 3) Dispute the CA tradeline through the credit reporting agencies and if the OC has cashed the check, dispute any balance showing by the CA, 4) See if the collection agency marks the account as being in dispute, 5) Dispute the OC tradeline and specifically, the balance and date of major first delinquency/status and account status if not marked as paid with a zero balance, 6) See if the OC marks the account as being in dispute. You could knock them both off. You probably will knock the CA off. If not, consider leveraging the FDCPA/FCRA violations against the CA IF they fail to mark it in dispute or continue to show a balance. A FCRA violation may be asserted against the OC if they fail to mark as being in dispute or verify a balance or wrong date of status.
To your first question/pargraph: IF - note - BIG IF - the original creditor notifies the collection agency of the payment you made to them. Some DO NOT. They will not remove any deragatory remarks, all that will be added is that the account is paid in full.
They should not - but a note of warning - a collection agency's account # of your debt is always different then the original account # by the original creditor.
Yes they can, the OC must state $0 balance, "account transferred/sold". The CA can report the account as in collections.
