I was told that if you pay an outside collection agency for a debt that was assigned to them by the OC the collection agency can or will only update their records and that you would have to contact the OC separately. If this is true are there any recommendations any how to approach the OC?
Request that the OC pull the account back from collections so you can pay them directly. Cut the CA out if you possibly can.
No, the CA doesn't control how the OC reports. How is the OC currently reporting this on your credit reports?
They say transferred account. I also read the following from an older post and was wondering if this is correct: Let me give you my perspective on this matter as the owner of a collection agency and the buyer of consumer credit debt. When we make the purchase or servicing transaction, we receive a power of attorney that gives us the inherit rights under the original cardholder agreement. We have the ability to "bind" the original creditor in certain situations. This gives us the right to settle an account and REQUIRE that the original creditor, such as Citibank, MBNA, Household etc. remove the original trade line and OURS. Why am I taking the time to tell you all this? Because I want you to know how it really is. I have been where you have been and I used to be a high profile credit restoration "master", charging up to Ten Thousand Dollars to fix peoples credit. I no longer have the time of desire and after having watched this board for over 8 months and having interacted with BREEZE, I feel it is my MORAL obligation to help you! Another suggestion.. Go to Office Max and have a rubber stamp made (make sure that it will fit on the back of a cashiers check size) that says: CASHING OF THIS CHECK REPRESENTS PAYMENT IN FULL TO WHOM THE CHECK WAS ISSUED. CREDITOR AND/OR ITS ASSIGNEE, AGENCY, COURT, LAWFIRM AGREE TO REMOVE ANY AND ALL DEROGATORY INFORMATION PREVIOUSLY REPORTED AGAINST SAID ACCOUNT BY SAID FIRM AND BY SAID FIRMS ORIGINAL CLIENT AND CREDITOR WITHIN 10 DAYS FROM THE DATE OF TENDER. TENDERING OF THIS INSTRUMENT SHALL INDICATE ACCEPTANCE OF THESE AMENDED TERMS OF THE CARDHOLDER AGREEMENT BETWEEN THE PARTIES. VOID IF RIGHTS RESERVED This stamp is the most valuable weapon that you will ever own. NEVER PAY A COLLECTION AGENCY. LAW FIRM OR COURT JUDGEMENT UNLESS THIS IS STAMPED ON THE BACK OF YOUR CHECK! This gives you the "slam dunk" proof of the amendment and agreement. The bottom line is if they cash the check, the deal is done, and then it is simply a matter of forcing compliance to the agreement.
I wouldn't rely on the CA to do much of anything for you in regards to how the OC reports all the negative marks associated with this debt. All the CA is concerned about is the collection. I'm assuming you have multiple late pays, and perhaps a charge off since it's already in collections. Anyway, since it's only been assigned for collection and not sold, I would go directly to the OC first and request that they pull the account back from collections in return for payment. I think that's a much better route to take, and it's generally much easier to deal with the OC anyway. They may even agree to remove the late pays, etc.
I wouldn't bank on that. Lots of people have tried different tricks involving different "binding" language on the checks. However, these are far from a "slam dunk" in court. While it is true that the terms on a check can be binding, I've seen cases where a court has said that they're not. The CA argued that they process so many checks, many mechanically, that it would create an unreasonable burden if they had to examine each check for binding terms. Not only that, but there's no way that's fitting on the back of a check-sized stamp. There is an unbelievable mountain of bad / outdated information out there regarding debt management. Even some of the information on this site, which is one of the better ones, is simply too old to rely upon. A good rule of thumb is that when you see someone ranting IN ALL CAPS and/or claiming something is a "slam dunk", it's time to chow down a few grains of salt. Joshua's advice is good: reach out to the OC. The worst possible outcome is that you'll wind up back where you are right now.
