Charge off, original creditor

Discussion in 'Credit Talk' started by Berru, Aug 4, 2016.

  1. Berru

    Berru Well-Known Member

    The original creditor has charged it off (they wont pull it back). It is with a collection agency. Both are on credit report. Should I pay collection agency? What is the best thing to do for my credit. This is an older dept (not 7 years) that I want to some how resolve. I believe I did the "prove it or remove it" with the collection agency a year ago to no such luck. Any advise would be great! Thanks
  2. bsmith

    bsmith Member

    You might be able to negotiate with the creditor to have him stop reporting it to the bureau. i.e. if you pay the debt then they stop reporting it to the bureaus. I have never done this myself, but I hear of people doing it.
  3. credlyfe00

    credlyfe00 New Member

    I would dispute (by mail) with the CRA ANY inaccuracies that you see on the account. I would also send the the CA a DV letter. Make copies and keep records of everything. The goal is to create a well documented paper trail. You may get lucky and it gets deleted through the dispute process may not. Since the debt is already with the CA and they are already reporting it on your report the damage is done. Try to get it deleted through the regular channels. Just because you pay it doesn't mean they'll remove it and if that's the agreement ALWAYS get it in writing. Good Luck in whatever you decide!
  4. JoshuaHeckathorn

    JoshuaHeckathorn Administrator

    Hey Berru- good to see you around Creditnet again.

    The newest version of the FICO credit score, FICO 9, actually disregards paid collections. So if you're looking to do what's best for your most current FICO credit scores, it would be wise to negotiate a payment with the collection agency and either get the collection deleted or at least updated to a "paid" collection.

    That said, a lot of lenders out there still use older credit-scoring models that treat unpaid collections exactly the same way as paid collections. That's why it's important to at least go for a pay-for-delete type of arrangement if it's at all possible.

    What kind of debt are we talking about and what size? Also, who is the collection agency?
  5. Berru

    Berru Well-Known Member

    So is there any way of removing the original creditor? What if the dates are wrong when they say it was opened and closed?
  6. Berru

    Berru Well-Known Member

    The debt is actually my wife's, its a credit card (SYNCHRONY BANK) the original creditor. The CA is PORTFOLIO RECOVERY

    Another question - Contacted a original creditor today to make payment (Ally Financial) that is listed on her credit report.... Said its been charged off deal with the CA, but theirs no CA for that account on her report... Now what?
  7. jam237

    jam237 Well-Known Member

    I would send them a letter stating that I tried to contact them in regards to a debt, that their agents said to deal with the CA, but there is no CA, and you would like to resolve this matter. Hopefully, if it gets high enough up the corporate ladder, you can find someone who can find it (and possibly, recall it back to where they can deal with it).
  8. JoshuaHeckathorn

    JoshuaHeckathorn Administrator

    I doubt it, as the OC sold the debt to portfolio recovery and they will likely direct you to portfolio recovery if you contact them regarding the debt. You could try a Goodwill letter after you've settled with Portfolio Recovery, letting them know that the debt has been paid and that you would REALLY appreciate it if they delete. Who knows, it could work!

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