cancel
Showing results for 
Search instead for 
Did you mean: 

OC has been paid directly, but CA is still on my CR

tag
jmbarboza
New Member

OC has been paid directly, but CA is still on my CR

Recently there was a collection that was added to my credit report for an unpaid medical bill. I made direct contact with the clinic that provided the service and found out that they had been mailing my bill to an old address. I immediately paid them directly hoping the CA would remove any reports from my credit since I didn't have to deal directly with them. All of a sudden I get an update from my Equifax report that shows the collection balance has been updated to a $0 balance. I do not want the CA on my report. Are they allowed to report any changes although there is no payment or contact made directly to them? Can I dispute the claims on my report from the CA? Please help me with advice. I have been working on my credit for far to long to have these savages burn me over night. Thanks!!
Message 1 of 8
7 REPLIES 7
RobertEG
Legendary Contributor

Re: OC has been paid directly, but CA is still on my CR

They are permitted fo report their collection provided they had collection authority at time you paid the OC.

After being notified by the OC of payment, they must report a $0 balance remaining under collection if they have previsous reported or add their reporting.

 

While a bit late since it has been paid, the preferable path is to offer the debt collector payment in exchange for their deletion if they hava already reported, or their agreement not to report if they have not yet done so.  Payment to the OC cuts the debt collector out of the process, and does not get their agreement to anythng.

 

There is no basis for a dispute.

You can contact the debt collector and request their good-will deletion.

Message 2 of 8
jmbarboza
New Member

Re: OC has been paid directly, but CA is still on my CR

So unless they agree to remove the collection by goodwill, I'm stuck with it on my credit?
Message 3 of 8
Anonymous
Not applicable

Re: OC has been paid directly, but CA is still on my CR

Yes. A good will letter is your only way. Good luck!

Message 4 of 8
apehar24
Established Member

Re: OC has been paid directly, but CA is still on my CR

I have a quesiton about all this... I haven't sent out my PFD letter yet to OC or CA. Both are reporting on CR. OC (credit card) states open,charge off/collection and a past due amount $940. The CA is also reporting this on CR, open and amount due $940. Do I send PFD to both or try calling OC and have them retract from CA first then pay OC? OR do I send the CA?

Message 5 of 8
Anonymous
Not applicable

Re: OC has been paid directly, but CA is still on my CR

Apehar: from my understanding the OC has to report a 0 balance once sold to debt collector. I wouldn't pay anyone until you got to the bottom of this. Others on here can tell you the exact steps.
Message 6 of 8
RobertEG
Legendary Contributor

Re: OC has been paid directly, but CA is still on my CR

Since the OC still owns the debt, you could choose to send an offer to pay to either the OC or the debt collector in exchange for their agreement to delete their own reporting.

Each can only agree to delete their own reporting.  Only one party can accept payment, so you would PFD one or the other, and then after the debt is paid, pursue a GW deletion from the other party.

 

If deletion of the CO and monthly derogs is your goal, you would send the PFD to the OC.  However, if deletion of the collection is your goal, then you would send the PFD to the debt collector.

 

Many collection assignments include stipulations that while in effect, all payments must be made via the debt collector, so it is usual for the OC to simply refer all payment matters to their debt collector.  Asking them to termiante their collection assignment and then take payment is possible, but they hired the debt collector for a reason, and may not entertain such a request.

Message 7 of 8
apehar24
Established Member

Re: OC has been paid directly, but CA is still on my CR

Thanks bunches for the quick replies from you both. Smiley Happy

Message 8 of 8
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.