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Encircle Collections

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jmichael24
Valued Member

Encircle Collections

I have a returned check for auto repairs. The OC is still in business and local. If I pay the OC in full, the CA will have to remove the file, is this correct? If not how do I get it removed?

Message 1 of 3
2 REPLIES 2
RobertEG
Legendary Contributor

Re: Encircle Collections

No.

 

CRA deletion is only required, per CRA policy in their credit reporting manual, when the collection authority of a debt collector is terminated prior to payment of the debt.

That policy is intended to prevent the appearance of more than one collection on the same debt.

 

CRA policy is just the opposite if the debt is paid while the collection authority is still in effect.

The standard credit reporting manual used by each CRA expressly states that a collection should not be deleted based on payment of the debt, regardless of to whom it is paid.

 

Since the debt collector is the party who reported their collection, the direct approach is to offer a PFD to them, rather than paying the OC.

They are the only one who can agree to delete their own reporting.

 

The less likely option is to request the OC to first terminate their collection authority granted to the debt collector, and then pay the OC.

That approach requires the OC to terminate their contract with the debt collector. 

They may be reluctant to do so, as they hired the debt collector for a reason, and additionally, terminating their contract and directly accepting payment is apt to create ill will in future business dealings.  They most likely have more to lose than to gain by such arbitrary terminations.

 

Is there some reason why you dont want to pay the debt collector as opposed to the OC?

 

Message 2 of 3
jmichael24
Valued Member

Re: Encircle Collections

No there is no reason. I am just trying to find the simplistic way to get the baddie deleted. I will do a PFD with CA.

Message 3 of 3
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