Collections

[Indycoltsfan]

I have an old utility bill from 2010 that just got placed with Online Collections and of course, the date on my CR is now 8/2014.  I am trying a work around and wanted to see if anyone else has done this before and if it worked.  I just sent a check for the full amount ($95) to the original debtor (REMC) apologizing for the delay and not realizing that there was a balance after the application of my security deposit.  My thought is is that they will have to pull the account back from collections to apply the payment, thus removing it from my CR.  If they don't accept the payment, then they will return my check and I will have to send it to the CA.  My thought is that it would be easier for them just to accept my payment.  Thoughts?  Am I way off base here?  

[Anonymous]

I have dealt with more than my share of collection agencies.  It has been my experience that once the creditor/vendor sends it to collection, you should deal with the collector directly.  They have almost certainly bought it from the utility and now own it.  Going back to the vendor complicates it.  Very few of my collections have appeared on my CR.  Once I paid or settled, the item fell off  my report, in my experience.  I wonder if, since your whereabouts was evidently unknown, reporting was a ploy to get you to respond.  Now I would wait and see what happens next.  The worst scenario has already happened.  No one takes legal action for $95.  

[gdale6]

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@Indycoltsfan wrote:

I have an old utility bill from 2010 that just got placed with Online Collections and of course, the date on my CR is now 8/2014.  I am trying a work around and wanted to see if anyone else has done this before and if it worked.  I just sent a check for the full amount ($95) to the original debtor (REMC) apologizing for the delay and not realizing that there was a balance after the application of my security deposit.  My thought is is that they will have to pull the account back from collections to apply the payment, thus removing it from my CR.  If they don't accept the payment, then they will return my check and I will have to send it to the CA.  My thought is that it would be easier for them just to accept my payment.  Thoughts?  Am I way off base here?  

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You should have contacted the OC prior to sending them any payment and asked that they recall their collector in exchange for full payment. With the way you have done it if they own it they will cash the check and info the CA its been paid and it most likely updates to a paid collection. If this happens you then have to begin a GW letter campaign on the CA.. If they dont own the debt they should return the check to you if they are not a dishonest operation.

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/GW-letter-Q-amp-A-Examples-and-GW-Success-Sto...

[Indycoltsfan]

Thanks so much for the response.  I should have researched a bit more, but the check is in the mail, so we shall see what will happen.  

[RobertEG]

If the OC still owns the debt, and if they will or are permitted under theri assignment agreement to take payment while the agreement is in effect, that will not require the OC to terminate the collection prior to accepting payment, and will not require the debt collector to then delete their reported collection.

It is not, in my opinion, the way to go.

I would first try a PFD offer to the debt collector.  That is straightforward, and if they agree, would not involve any need for the OC to first terminate their assigned collection.

If the colection authority is assigned, the OC presumably did it for a business reason, and may not want to simply terminate.

You lose nothing by paying the debt collector, and gain a promised deeltion from the party who reported it.

[Indycoltsfan]

Paying the OC directly and then disputing the collections online worked!  I got notice from Experian this weekend that it will be removed from my credit report.  It was only reported to one bureau, but very happy to get this off my report.  

[RobertEG]

You were lucky.

Deletion by the debt cvollector was most likely a voluntary deletion on their part, and not a finding by the CRA in their reinvestigation of the dispute that deletion was mandated based on payment of the debt.  That is contrary to their policy.

I would assumet the debt collector voluntarily chose to deleter rather than respond to the dispute.

Thus, I would not assume that your use of a dispute is likely to lead to deletion by others following that lead.