Confused about paying JDB vs OC

[anackerman]

This might be a nobrainer but I'm pretty new to all of this....

I keep reading all over this site that I should not pay a JDB but to deal with the OC directly. I'm a little confused by this as I was under the impression that if a JDB is reporting its because they have purchased the debt from the OC meanining that the OC no longer owns the debt, therefore, unable to collect payment. Can someone please clarify on this topic for me? I have a TL reporting with a JDB and I would just like some information on how to proceed. Thanks!

[RobertEG]

If the OC no longer owns the debt, they should have reported an update to the CRA showing the debt balance with them as $0.

Is the current balance reported by the OC now showing $0?

Your statement that JBDs are in the business of purchasing bad debt is correct, clearly implying that they now own it.

Reporting of $0 by the OC will confirm it.

In that event, you have no option, as the OC cannot accept any payment, PFD or otherwise, if you owe them no debt.

Even if the OC still owns the debt, it is still usually preferable to offer a PFD to the debt collector as opposed to the OC, unless deletion of prior reporting is your objective rather than deletion of the collection.  Many prefer to deal with an OC rather than a debt collector, but that does not make it the best plan.