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CA won't accept payment

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mauve
Valued Contributor

Re: CA won't accept payment

The CA is obligated to update as "paid" if it is paid to the OC, correct?  Perhaps they can no longer reliably update the status of the debt, i.e., once they cannot accept payment, they also can't guarantee the accuracy of the amount and can no longer validate.  Perhaps this isn't a law so much as a policy that the CRAs have - i.e., if it comes to their attention that there is more than one CA listed for the same debt, only the current one can validate - the CAs delete OR can't validate based on that, and it's not worth their time / effort to fight that kind of deletion.


Starting Score: EQ 583 TU04 619 EX 592 (lender pull) 2010
Previous High Score: EQ 700 TU04 712 EX 726
Current Score: EQ 740 TU(Discover) 750 EX(AMEX) 747
Goal Score: 740+ all around


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Message 11 of 14
Anonymous
Not applicable

Re: CA won't accept payment


@mauve wrote:

The CA is obligated to update as "paid" if it is paid to the OC, correct?  Perhaps they can no longer reliably update the status of the debt, i.e., once they cannot accept payment, they also can't guarantee the accuracy of the amount and can no longer validate.  Perhaps this isn't a law so much as a policy that the CRAs have - i.e., if it comes to their attention that there is more than one CA listed for the same debt, only the current one can validate - the CAs delete OR can't validate based on that, and it's not worth their time / effort to fight that kind of deletion.


Ok.  I don't think anybody amongst us would dsagree that a CA cannot report until they respond to a timely put DV request. 

 

What happens when the DV request is way out of the picture timewise?  Would they be obligated to delete because the debt was since sold and another CA is reporting?

 

If we are talking about a CRA request for verification, wouldn't it be proper for the CA to verify that the item was once in collections and now has a zero balance since that CA now no longer collects on the debt?

Message 12 of 14
RobertEG
Legendary Contributor

Re: CA won't accept payment

If you pay the OC, then of course, the debt is paid.  The OC will record a debt due balance of $0 in their OC account reporting, and notifiy the CA that the debt is paid, and thus terminate the ability of the CA to conduct further collection activities.The CA must then, also report a $0 debt due (inless, and it is possible, that the CA still asserts fees due ot them, but that is a complication I wont get into).

 

But none of that has anything to do with credit reporting.  Payment does not require either the OC or CA to delete prior, accurate reporting they made.

Just to update their account status.

 

Sending a debt validation letter to a CA after debt is paid is frivolous.  As O6 pointed out, the DV process is not without limits.  YOu have only 30-days after receiving initial notice of collection activity to send any binding DV request to a CA,  They can just ignore it.

Additionally, at this time, there is nothying for them to validate, and validation has nothing to do wiith their prior collection authority before the debt was paid..

They are no longer a debt collection agent of the OC.   And CRAs wont intervene, as CRAs are not a party to the DV process.

I know of no statutory, regulatory, or administrative procedure that requires a CRA to delete prior, accurate reporting by any party based on subsequent reporting of another party.

 

 

 

Message 13 of 14
mauve
Valued Contributor

Re: CA won't accept payment

I was essentially saying that there is SOME reason that CAs delete either on their own or upon DV...this could be because the CRAs have internal rules that say that they will only take 1 CA for each OC debt, it could be because it's not worth the CA's time to verify once they can no longer collect.  DVs do not have the power to compel them (outside of Texas) beyond 30 days, but they seem to be effective at compelling them to reply regardless of the timeframe.


Starting Score: EQ 583 TU04 619 EX 592 (lender pull) 2010
Previous High Score: EQ 700 TU04 712 EX 726
Current Score: EQ 740 TU(Discover) 750 EX(AMEX) 747
Goal Score: 740+ all around


Take the myFICO Fitness Challenge
Message 14 of 14
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