02-20-2013 11:26 AM
If an account is paid to the OC, who placed the account on CO with a CA. Which should be the correct reporting of the debt once it has been paid to the OC?
Should the OC sent an update to the CA indicating that the account was paid in full (on this case it was). I called the CA who stated that they were in position of taking any payments, but payment should be sent directly to OC.
Does paying the OC automatically means the CA needs to update the three CRAs to reflect payment, or does it dissapears once it has been paid ?
Thank you for your advice.
02-20-2013 11:29 AM
Paid collections don't disappear, unless it was a prior arrangement of paying the debt.
If you paid the OC, they have to notify the CA who in turns has to update the CR to reflect paid.
02-20-2013 11:53 AM
If they fail to timely update, you can send them a direct dispute, with the basis being their failure to have complied with FCRA 623(a)(2), which requires any party to timely update their reporting so as to maintain its currect accuracy.
While they most likely view updating as a mere clerical or administrative issue, it is far more than that to a consumer.
Until updated, others pulling the consumer's credit report will not be advised of satisfaction of the debt.