My understanding is that we can always insist on making payments to original creditor only and cut the collection agencies out of the picture? (Ohio, by the way - don't know if it varies by state). On Med bills it seems that the coll agency will insist that no, we must make the payment to them, failure to do so and paying the hosp/doc instead might lead to "delayed credit for payments" which would cause us to go into collection anyway ... etc. etc. It's all such obvious bs designed to get us to make payment to them right? Also, if we pay to original creditor does that effectively cut coll agency from getting a share of it or do they still get their cut ina roundabout way?
Sure, you can insist on paying the OC (assuming the OC still owns the debt). Sometimes the OC just wants to be paid and will gladly take what you want to give them. However, some OCs will not deal with a debtor once they give an account to a CA. I know of no laws that would force an OC to work with a debtor instead of their CA once the debt has been defaulted on.
In a related question, if you bypass the collection agency and pay the original creditor, can the collection agency report the account as a "paid collection?" or do they have to delete their listing altogether since they are no longer handling the account? Thanks Luke
1*My understanding is that we can always insist on making payments to original creditor only and cut the collection agencies out of the picture? 2*Also, if we pay to original creditor does that effectively cut coll agency from getting a share of it or do they still get their cut in a roundabout way? kseab | =================== 1*Not so if the oc sold the account. 2*Who cares as it really doesn't matter!
You can pay the orginal creditor directly, unless they have SOLD or TRANSFERRED the debt to another entity (in this case the term original creditor is more accurately used). If the debt is LEGALLY OWNED by a NEW ENTITY, then you MUST pay the new entity. When a collection agency is collecting ON BEHALF OF the original creditor, they usually operate under a contract. Anything you pay to the original creditor goes toward the agency's contractual fees, no matter who receives the payment(s). I get a kick of people who think by paying the original creditory, they are somehow screwing the collection agency out of their cut. Trust me, they get theirs and then laugh all the way to the bank. So does the original creditor - Remember the whole idea is to get the bill paid. The original creditor has already written off agency fees as a loss, or their collection fees have been tacked on top of the original balance (if there is a contract or promisary note between the consumer and the original creditor that allows such fees). Keep in mind that collection agencies can buy accounts from the original creditor. This is a totally separate scenerio than an agency who collects ON BEHALF OF the original creditor. In this instance, dealing with the original creditor is not an option. As for credit reporting, all the law requires is that the collection account be shown as a paid collection once it has been fully paid. When you pay the original creditor directly, all they do is report the payment to the agency, and the agency updates the credit report to reflect the paid status. Bypassing the collection agency has no bearing on the collection account listing on a CR. Hope this helps.
