PLEASE Help - Pay OC or CA?

[brighterday]

I apologize in advance for the long post...

I have an old account with a cable company (OC) that I have been disputing/trying to resolve with them since Nov 2007.  The balance was $251 --- $151 for services and $100 for equipment (which I never had in my possession).  A CA has been reporting this one account to all three bureaus since Dec 2007 as two separate accounts of $151 and $100. The CA verified the accounts with the CRAs and responded to my DV letter with my account history with the OC.  While I am curious as to whether or not it is legal for them to report one account as two, that is not my question (although I'd appreciate any feedback on that matter as well).

After spending over a year disputing the equipment charge ($100) with the OC b/c I NEVER had the equipment, they have finally removed it from the account today. They told me that I now owe $151 (which is correct) and that I should pay the amount to them.  They will then notify the CA that the account was PIF and it will be updated as satisfied.  The OC also stated that they assigned the debt to the CA as one account and don't know anything about it being handled as two.

1.  Should I pay the OC (not reporting the account) or the CA (reporting to all 3 CRAs)?
2. Once I pay the $151, what recourse do I have in getting the $100 tradeline deleted by the CA? 

BTW, I've offered a couple of PFDs for the full amount to the CA in the past and they did not respond.

[Anonymous]

You need to get it in writing that they are removing the $100 charge.

Also get in writing that upon PIF they will recall the account from the CA, not just notify them to update the account as paid.

[brighterday]

Thanks for the quick response, sidewinder.  I was told by the OC that I could get something in writing stating they are removing the $100. Once I get the letter do I send a copy to the CRA for deletion?

I was told that they would not be recalling the account from the CA, just notifying them that it is paid. If they are adamant that they will not be recalling the account should I not pay the OC and continue my PFD efforts with the CA?

[RobertEG]

I would strongly recommend paying the OC, if possible, rather than the CA.  For credit reporting reasons discussed below, paying the OC will remove the CA account from the CR, but paying the CA will not. I refer to a public memorandum published on the web at http://cdia.files.cms-plus.com/PDFs/DebtCollectorDebtBuyerGuidance200709.pdf.  This memo was released in September, 2007 by:Stuart K. Pratt President and CEO Consumer Data Industry Association 1090 Vermont Avenue NW Suite 200 Washington, DC 20005 

The CDIA is the trade organization that publishes the credit reporting guide used by all three credit reporting agencies.  It states, in pertinent part:

 “First, please be aware that the industry's Metro 2 guide does have specific instructions when a third party collection account is returned to the original lender or in the case of a debt purchaser, is resold. Specifically, the collection agency or debt purchaser should direct the national credit reporting agency to delete the account from the consumer's file since it is no longer an account for which the company is attempting collection. Following is the information that appears in the Credit Reporting Resource Guide in the collection agency/debt purchaser reporting guidelines section. Account Status Codes (Base Segment, Field 17A) — report only the following: 93 — Account assigned to internal or external collections 62 — Paid in full, was a collection account DF — Delete entire account due to confirmed fraud DA — Delete entire account (for reasons other than fraud) Collection Agencies must delete accounts that have been canceled and returned to the creditor. Debt Purchasers/Factoring Companies must delete accounts that have been forwarded or sold to another entity. This value should also be used for accounts reported in error.

Do not delete paid in full collection accounts.”

[brighterday]

Thanks! I just hope that I can get the OC to agree to recall the debt from the CA.