If I tell a collection agency to cease and desist, then contact the original creditor and arrange payment, can the collection agency keep their own info on my credit report? Aside from this, what are good circumstances to tell a CA to "cease and desist"?
It depends on whether they purchased the debt or it was assigned...but generally speaking, if the original creditor accepts payment in full for the account, the CA should remove their listing from your report as they really never "owned" the debt. Immediately upon first contact. -Peace, Dave
Okay Nave....let's say it WAS assigned and the original creditor charged it off. CA (assignee) is being bullheaded...will not accept payment for deletion. OC is obviously under the impression they will not get their money. Would you advise contacting the OC, try to negotiate to pay...then go after CA to delete the entry?
Yes, I would (and do) try as best as I can to deal ONLY with the OC. Once they accept payment on the debt and it is satisfied, the CA is a non-factor. Even with purchased debt, I would argue that you never owed the CA, and if/after the OC accepts payment, your obligation to the debt has been satisfied according to the OC, then the CA has no legal right to continue reporting the listing. -Peace, Dave
So how should this be handled? Should I say "cease and desist" to the CA, then inform OC of this and offer payment?
OC says I must pay CA I was told by the original creditor today that I must pay the collection agency, as they have purchased the debt. I was also told that they (OC) would be given a portion of the money when I paid the CA. To me, this doesn't sound like it has already been purchased? My tentative plan is to tell the collection agency that I refuse to deal with them, and will deal only with the original creditor. Then I will either send OC a letter informing them of this and offering to make payment, or just send them a check and see if they cash it. If they do, I would think the CA no longer has the right to report this?
Better re-think the purchased debt thing. Mortgages are sold everyday, don't think the fact the mortgage is no longer with the original creditor would keep you from being foreclosed on. If it's a purchased debt (or even if it isn't) I'd send the validation letter and what happens from there. Gib
No why would you think that. Mortgage companies that buy mortgages are not collection agencies. If your mortgage can be sold (again not all can be), it is in your contract and is done all the time. The secured equity (your home) goes with the contract. I believe a mortgage company that buys your mortgage is considered the "new" OC not a CA (and treated as such under the FCRA not the FDCPA). Purchasing bad debt or a c/o as a CA does, is not the same thing. In other words they are not "collecting" for your mortgage, they own your mortgage. -Peace, Dave
Be careful with that one, some mortgages are transferred and sold to a real estate portfolio. The Loan Servicers DO fall under the FDCPA; it's a slimey product of the surge in predatory loans .
That is true, you must read your contract AND understand the difference between how the debt is sold/transferred. I agree and good point Sassy. Bottom line is mortgages are "important" debt dealing with a promissory note, not just a written contract, and far from an open-ended contract like CC debt, important enough to really study your contract and consult an atty when in doubt...I would NEVER trust my house to advice or suggestions given here on the board without legal counsel of some type that pertains to your particular situation. Be careful. -Peace, Dave
Our situation isn't even dealing with a credit card debt. It's an outstanding bill from the Water District from where we lived in 1995. We never got a bill because someone got our forwarding address wrong.
