Rebuilding Your Credit

[MrChairman]

My wife has an outstanding college tuition bill. We plan to pay it off this month. It is at a CA right now. I believe the college has told her they could pull it back from the CA. My question is, once it's pulled back from the CA and paid can they still report it as a CO since the OC was paid? And if they can't how would we go about removing it from her reports?

[guiness56]

Once the OC pulls the account from the CA, the CA can no longer report any thing about the debt.  They no longer are actively collecting.

The OC can report it as a paid CO anytime until the 7.5 year CRTP.

[MrChairman]

So the CA has to delete? Also, why would the OC report the debt to the CRA if it's PIF?

[RobertEG]

No.

"Pulling back from the debt collector" simply means they terminate their collection authority.

Once that occurs, the debt collector is not precluded from further reporting.  In fact, they are required to additionally report that the amount now under their collection is $0, and close their collection.  It does not compel them to delete their reporting of the collection.

There is no such thing as an OC "pulling back" reporting made by a debt collector, even if they are/were their assignee.

[MrChairman]

So it sounds like paying the CA would be a better bet than paying the OC. The result would still be the same which is a CO on the CR's. At least with the CA you can GW. If you pay the OC your taking business away from the CA and they have no reason to honor a GW from someone that cost them money.

[guiness56]

OCs have and do pull back accounts from CAs.  It happens all the time.

[Shogun]

What RobertEG saying is true, but guiness is also correct.  All the CA has to do is to terminate collections, however they are a client of the OC and often follows the OC's request so that they remain a client.