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Established Member
nolimits
Posts: 52
Registered: ‎07-10-2007
0

Did I Just Get a Collection Removed or Settled?

Recently pulled my CR and discovered an unpaid gas bill. I don't even remember it frankly but I called the OC to inquire about it. Turns out it was my old address and only $70 so I just wanted to get it off my credit.

Here'a what got me thinking. The guy tells me I can pay them directly and they will pull back the account from the CA. Also that they report to CRA's twice per month, on the 1st and 10th. I was very clear this payment was direct to the OC and it was confirmed. I paid. Then he states the account should be updated as satisfied/paid. I immediately started asking questions. He said he didn't know I it removed it or simply updated the CR.

So now I am left thinking I might have got screwed. I thought by contacting the OC and paying them direct this provided a way to remove the collection. Is that not right? The guy told me the money I paid was direct and applied to the OC account number. I know the rep I spoke to was the OC because I looked up the OC website and called their 800 number.

Any help would be much appreciated.
It is only the poor who pay cash, and that not from virtue, but because they are refused credit. - Anatole France

FICO Scores (1/6/13): EX 642 and TU 670
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Shogun
Posts: 12,952
Registered: ‎04-15-2011
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Re: Did I Just Get a Collection Removed or Settled?

So it's paid now?  Send a GW.


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RobertEG
Posts: 18,463
Registered: ‎03-19-2007
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Re: Did I Just Get a Collection Removed or Settled?

The debt collector reported the fact of their authority to collect on the debt.

The OC has no authority to delete that reporting or to require the debt collector to do so.  They can contact the debt collector and request them to delete, but they cannot "pull back" their reporting.

 

If the OC made such representation to you, they have no way to carry through.  Perhaps the debt collector will voluntarily delete, but they do not have to do so.

 

If deletion of a collection is the goal, the best path is to make a PFD offer to the debt collector.

Established Member
nolimits
Posts: 52
Registered: ‎07-10-2007
0

Re: Did I Just Get a Collection Removed or Settled?

Well I have already paid so a PFD isn't an option at this point.

Did I misunderstand that if a collection is paid directly to the OC that the CA can no longer report the collection since they basically got nixed from the equation and have no right to claim so?

Kind of regretting doing this now.
It is only the poor who pay cash, and that not from virtue, but because they are refused credit. - Anatole France

FICO Scores (1/6/13): EX 642 and TU 670
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Jutz
Posts: 1,216
Registered: ‎05-10-2012
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Re: Did I Just Get a Collection Removed or Settled?


nolimits wrote:
Well I have already paid so a PFD isn't an option at this point.

Did I misunderstand that if a collection is paid directly to the OC that the CA can no longer report the collection since they basically got nixed from the equation and have no right to claim so?

Kind of regretting doing this now.

Unfortunately, yes, you misunderstood that part.  However, like Robert explained, the OC can use their relationship with the CA to have them remove it.  There's probably not a giant window for this, so you'll want to start making some calls.  There's no formal process of "pulling" a debt back from the CA.  I still think you have a pretty good shot at making this work though, good luck!

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Established Member
nolimits
Posts: 52
Registered: ‎07-10-2007
0

Re: Did I Just Get a Collection Removed or Settled?

Thanks for the more in depth explanation.

So I have another question. Since this collection was 2 years old and "sleeping" I presume my score was creeping up as time passed since adding. Will this "awaken" the beast and cause my score to drop as a result? Assuming they just upgrade my status to paid.
It is only the poor who pay cash, and that not from virtue, but because they are refused credit. - Anatole France

FICO Scores (1/6/13): EX 642 and TU 670
Valued Contributor
Jutz
Posts: 1,216
Registered: ‎05-10-2012
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Re: Did I Just Get a Collection Removed or Settled?


nolimits wrote:
Thanks for the more in depth explanation.

So I have another question. Since this collection was 2 years old and "sleeping" I presume my score was creeping up as time passed since adding. Will this "awaken" the beast and cause my score to drop as a result? Assuming they just upgrade my status to paid.

No, your score will most likely not change at all, unless the balance was affecting your UTIL, which is unlikely in this scenario.  The only way that could happen would be if it were re-aged, which it can't unless in certain scenarios in certain states.  PIF avoids those scenarios anyway.

 

I still think they may delete anyway, there's a chance you worked that out, he just wouldn't say it in those specific terms.

  • Current: EQ FICO 694, TU FICO 695, EX FICO 698 | Starting Score: 525 (05/2012)
  • Starting total revolving credit: $1100 | Current total revolving credit: $29,500
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DCU Visa $10000
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AMEX BCE $1000
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BOA Platinum $600
AMEX Gold NPSL
Established Member
nolimits
Posts: 52
Registered: ‎07-10-2007
0

Re: Did I Just Get a Collection Removed or Settled?

It does not appear to be affecting my utilization.

I am thinking I may wait until tomorrow or even Friday to pull my report again. Maybe even use Credit Karma for free. I just need to know if its gone or not. The gas company said they update to the CRA's on the 1st and 10th of each month.

Or would I be better to call back the gas company and ask them to ask the CA to remove it? Or better yet just call the CA myself since they gave me their contact info.
It is only the poor who pay cash, and that not from virtue, but because they are refused credit. - Anatole France

FICO Scores (1/6/13): EX 642 and TU 670
Valued Contributor
p-
Posts: 2,655
Registered: ‎06-05-2008
0

Re: Did I Just Get a Collection Removed or Settled?


nolimits wrote:
Well I have already paid so a PFD isn't an option at this point.

Did I misunderstand that if a collection is paid directly to the OC that the CA can no longer report the collection since they basically got nixed from the equation and have no right to claim so?

Kind of regretting doing this now.

Don't give up....

 

Sometimes if it is "pulled back" from the CA, the CA will stop reporting.  I would wait a month or so, and if it's still there dispute it as paid to original creditor.  If the OC didn't report it to your CR, that will probably fix it.

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