NEED DIRECTION

[ON_A_MISSION]

Hi everyone,

                 First-timer(bear with me)! I have read over 100 threads and get the idea, but need direction. I have 2 acct's "placed for collection".  Both acct's went delinquent in Jan 08(lost job and apt.) The OC's are not reporting, only CA's.  Phoned the OC's to see who "owned " the debt. Both said they showed a balance and would accept payment.  I'm inside my states SOL.  The debts are valid.  The first OC(Cox Communications) said they would pull the Collection and report as paid in full(as of now they report nothing) The other OC(SDG&E) said they would let the CA know that the acct was paid in full. I did not acknowledge the debt as mine and made no verbal offer of PFD.  Where do I go from here?

[RobertEG]

You dont want paid in full, for that will not remove the collections,.

Suggested letter to them:

This is an offer to pay to you, as the orignal creditor, all remaining debt on the named account.

My offer has only one contingency,  Upon payment in full to you, I request that you agree to instruct any and all collection agencies to which yuu have reported this debt to immediately fully delete, and not just record as paid, any collection account they have posted to any credit reporting agency.

Message Edited by RobertEG on 01-09-2010 08:55 PM

[ON_A_MISSION]

Thank you RobertEG,

                               I can only hope it's that easy.  I got the feeling from Cox that they would pull the CA but then begin reporting it as a paid collection themselves.  Is that possible?  My concern would be giving me a "newer" baddie. 

     Should I address the letter to the collections manager or just the collections dept.

     Could you also give me a couple "what ifs" if they dont agree with the terms? 

Message Edited by ON_A_MISSION on 01-09-2010 09:18 PM

[RobertEG]

No, that is illegal.  Only a third party can report a collection to CRA. An orginal creditor is NEVER a third party.

Basic defrintions, as set forth under FDCPA 803.

[RobertEG]

You need direct contact with only the OC.

Your accoutn with them is now closed, and they cannot report anything more than they already have. 

They most certainly cannot report, as the OC, any collection account.

Call them!  They want your $$$!

[ON_A_MISSION]

Do I understand?  As the OC they can't generate their own report as say "PIF after collection attempt" or whatever.  If they accept PIF, what are their legal obligations concerning the CA? It's my understanding that if they accept PIF, and the account is closed, the next step would be to DV the CA and there would be no debt to verify. Is this correct.  OT. have other issues would like help with, start a new thread?

[RobertEG]

You have two separate acounts in your credit file.  And they are really very separate.

The first account you have is with the original creditor (OC).  That is the creditor who you signed an account agreement with.

That is direct, and legal. The OC can post monthly delinquencies on their account with you.

If the OC then places unpaid debt to a collection agency (CA), then the CA is permittted, under the FCRA, to post their collection activity with a CRA.  .But no CA can ever, ever, update or re-age anything previously posted to your OC account.   A CA account is NOT an account with you.  It is purely an administrtive account between the CA and the CRA, with NO obligation on your part.

So any commitment you make with the OC should be contingent upon them first terminating any relationship with the CA, and an agreement that this will result in total deletatiion of the CA account from your credit file,. Negotiation with a CA when the OC still owns the debt wont win in court.

 Until that is secured, payment wont improve FICO score.

Message Edited by RobertEG on 01-09-2010 11:04 PM

[ON_A_MISSION]

Thanks so much.  I think I understand.  I'll do as you suggested earlier, write the OC and wait for their reply.  once i have that in hand, We'll chart the next leg on this journey.  I'll post a copy of my letter for crtique tomorrow(minus any ID stuff) and try to keep everybody updated.  Again, Thanks for your time and expertise