I have a small (under $100) paid collection that is being reported to the CRA's by the collection agency. They verified it with all three CRA's. The original creditor is more understanding after I explained why the bill was unpaid originally. It was my fault but no intent to deprive them of their money. Just a mistake. The original creditor is willing to have any negative references removed from my credit reports. But, the negatives are put there by the collection agency. How do I handle this? The collection agency is not willing to help at all. The original creditor will work with me in any reasonable way.
Kay: This seems kinda odd. If the account has already been purchased by a collection agency, how can the original creditior help? If they're being sincere, I'd tell them to straighten things out w/ the collection agency, then work with them. As always, make sure everything is in writing... Anyone? let me know if I'm way off... DB
My understanding is that the collection agency did not buy the debt, they only collected it for the original creditor. Therefore, I am assuming that the original creditor can help me. I just don't know what to do.
Some of the more experienced people here may be able to tell you if this is a good idea. Tell the collection agency to verify the debt with the creditor. Tell the cooperative creditor not to respond to the collection agency. The collection agency cannot verify the debt and therefore takes it off your credit reports. Will this work? Any opinions? Any better ideas?
Kay, If the original creditor is not reporting anything to the CRAs, then pay them in full and get a letter/statement showing that you have paid in full from them. I doubt they will report anything after you have paid them, and especially if you have a rep telling you they would be happy to remove negative info if they had reported it (of course, you'd need to get this in writing). After you pay the original creditor, write the collection company saying that you do not owe this debt and tell them to stop contacting you and to take the data off of your credit report - since you legally never owed *them* the money in question. Essentially, after the debt is paid to the original creditor, you can write the collection company a cease and desist letter. B/c the debt will be paid off with the original creditor, the collection company won't be able to make any claims against you. Keep talking with whomever person you are talking with at the original creditor and get all in writing.
Marci The debt has already been paid. I was trying to find the answer to this same question last week. Good Luck Kay. Let me know if you find the answers. Thanks
Re: earlier answer Can anyone tell me if my earlier post on this subject is a good or bad idea? I am still learning but it seems reasonable.
