Reply
Contributor
Posts: 96
Registered: ‎03-04-2009
0

HELP!!!!

Need someone's help please....  I have an AT&T account that is showing still negative on my credit report.  However, there is also a collection agency for  AT&T.  My question is do I pay the OC, then debt validate with collection agency to remove?  Or should I just pay the Collection Agencyy and then let AT&T know that it's reporting incorrectly?  Any advice please let me know!  Anyone have a contact for AT&T please IM me that as well! 

 

Thanks for the help!!!


Starting Score: 506
Current Score: 565
Goal Score: 700


Take the FICO Fitness Challenge
New Contributor
Posts: 89
Registered: ‎03-03-2010
0

Re: HELP!!!!

Is the name of the CA AFNI?


Starting Score 3/9/2010 EQ: 567 800
Current Score: 4/23/2010: EQ: 583 EX 631 TU606/font> 800
Goal For All 3: 720 850


Take the FICO Fitness Challenge
Valued Contributor
Posts: 1,934
Registered: ‎10-23-2007
0

Re: HELP!!!!

Who is currently reporting? AT&T or the CA? or both?

Contributor
Posts: 96
Registered: ‎03-04-2009
0

Re: HELP!!!!

Name if CA is Enhanced Recovery....

Starting Score: 506
Current Score: 565
Goal Score: 700


Take the FICO Fitness Challenge
Contributor
Posts: 96
Registered: ‎03-04-2009
0

Re: HELP!!!!

Unfortunately BOTH AT&T and the CA are reporting... So does that mean I can just pay the OC?

Starting Score: 506
Current Score: 565
Goal Score: 700


Take the FICO Fitness Challenge
Contributor
Posts: 108
Registered: ‎02-11-2009
0

Re: HELP!!!!

I'd talk to AT&T and see if they would still accept payment for the account and if upon receipt of payment would then recall it from the CA.  If they still own the debt, they have the ability to do this.  Also use restrictive endorsement on your certified check to AT&T.

 

If AT&T won't accept payment, DV the CA before you PFD...I had an ATT debt reporting on my report as well but the CA was unable to validate the debt and AT&T couldn't give details on the suspect debt due to many company aquisitions (ATT was NOT reporting to my report).

Epic Contributor
Posts: 20,897
Registered: ‎03-19-2007
0

Re: HELP!!!!

Whether an OC will accept payment once they have contracted with a CA is hard to predict.  It depends on a lot of internal business decisions on their part, and it may simply not be to their benefit.

Once your debt is sold to a collection agency, the original creditor is out from under any further ownership of rights to, and thus acceptance of, the debt.

However, if the OC merely contracted with a CA to collect on their behalf, they still retain legal ownership of the debt.  

Then it gets real complicated.  Once they contract with a CA, the OC can then do a tax writeoff of the bad debt for internal tax purposes.  This is called a charge off.

Some OCs will routinely do a CO before collection referral, and also report a CO to your CR.  But just because they did not report a CO to your CR does not mean they have not done such an accounting transaction with the IRS.

 

If the CO then accepts your payment, then they lose this loss - a loss that previously helped to offset any taxes that they might have  paid. That involves a lot of account dept shuffling in their next tax return.  Are they willing to undergo this internal business expense? 

By accepting your payment, that might undercut potential CA profits, so it might not help them in future business relationships with the CA.  All things the OC considers.

This is a bit simplified, but my opinion is that the original creditor is unlikely to take your money unless it is for, or very near, the full amount owed.

If your account is with an in-house collection agency of the OC, that is an entity that is owned or part of the original creditor, then I would try first to pay with the original creditor.  While such in-house collection activities are still considered “debt collectors” under FCRA 803(6), and thus subject to all of the provisions of the FDCPA, they are nonetheless not third-party collection agencies.  You may have better luck with them.

Either way, there is no provision of either the FDCPA or the FCRA that requires, once a legimate collection is reported to your CR, that any removal of that reporting is ever required, regardless of whether debt payment is accepted by the OC or CA.

Contributor
Posts: 96
Registered: ‎03-04-2009
0

Re: HELP!!!!

Thanks for all the info. However, shouldn't the OC be reporting a 0 balance if they sold it to a CA?

Starting Score: 506
Current Score: 565
Goal Score: 700


Take the FICO Fitness Challenge
Epic Contributor
Posts: 20,897
Registered: ‎03-19-2007
0

Re: HELP!!!!

If they sold the rights to the debt, yes, theOC shouild report $0 balance.

But how do you know their contractural agreement with the CA?  Sold or assigned?

Contributor
Posts: 96
Registered: ‎03-04-2009
0

Re: HELP!!!!

I don't know.... All I know is that I have both of them reporting negatively and don't know who to pay to get it taken off

Starting Score: 506
Current Score: 565
Goal Score: 700


Take the FICO Fitness Challenge
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.