Pay OC or CA, debt not on Credit Report (yet!)

[MaRain]

Hi all, 

Last week received a dunning notice from AFNI regarding an old (3 years ago) AT&T account. I really had forgotten about this account but was able to log into the AT&T website to look it up (using my old username and password, still worked) and I have the option to pay it off through their website. I started to pay it today but cancelled the transaction. 

This account has not been reported to the CRA's yet and going by the date of the notice, it have until 6/9/13 to either pay or dispute it. 

I will pay the bill tomorrow (5/22/13) but wanted to ask these 2 questions:

1) If I pay AT&T (OC) directly, and dispute the account with AFNI as paid in full, will this prevent AFNI from reporting the account on my CR?

2) If I pay AFNI (CA) directly, will AT&T be notified that the account has been paid in full (and I won't have to pay AT&T again for this debt if I obtain service from them in the future)?

My thought process is that AFNI can't report this debt if I pay it in full, well before the end of the 30 day dunning notice period and DV them within that time period,(if that makes sense) since they cannot legally collect on a debt that has already been paid in full. 

I prefer to pay AT&T directly (since I still can) because more than likely when I move, I will crawl back to them to obtain home phone service. I would hate to pay AFNI directly and for them to go ahead and report it to the CRAs anyway as paid. I am trying to do some damage prevention minimize the damage (which is ironic since this could've been done by paying the bill in the first place, haha)

[webhopper]

My advice would be to pay ATT the full amount, and send a DV to AFNI...  That should take care of things.

[p-]

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@webhopper wrote:

My advice would be to pay ATT the full amount, and send a DV to AFNI...  That should take care of things.

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+1  did the same thing after it was reported, and AFNI took it off the report.

[MaRain]

Sounds like a plan! I will pay AT&T and send out my DV to AFNI tomorrow. I will post an update when I have one. Thanks for the advice!

[RobertEG]

If you pay the OC, that terminates the debt, and thus the collection.

At that point, the debt collector must update their collection to show closed, $0 balance.

There would be no inaccuracy in their reporting upon which to base a dispute  Paid does not render the fact of their having had collection authority, and reporting it to the CRA, inaccurate.

I would pay the debt collector in exchange for a pay for not reporting agreement.

The debt collector is the party with whom you wish to address credit reporting, so dealing with them would be my recommended action.

A request for verification of a paid debt is kinda meaningless if the debt is legit......." we verify the debt is $0."

[DaBears]

Actually, if the OC is paid the collection agency must delete their tradeline.

[MaRain]

AT&T has been paid, I have a confirmation number for payment and I have printed out a copy of the payment with the confirmation code. Also, when I went back to view my account summary, this appeared:

Balance : $0.00                                                           *Required

null A.F.N.I. 8007672364

Payment 

Amount*                               Payment Date*                

$ 173.71                               05/22/2013

I will proceed with the advice of sending AFNI a DV letter and will update everyone on the outcome. 

Just to clarify, AFNI sent me a 1st dunning notice dated 5/9/13 (I received it on 5/17/22) and is NOT reporting on my CR. With the DV going out CMRRR today, I will be within the 30 day timeframe so I am hoping to clear this with AFNI in enough time for it not to be reported on my CR

[RobertEG]

On what basis must a debt collector delete accurate reporting of their collection based on satisfaction of the debt, regardless of whose hands the payment passes through?

Payment to the OC does not negatte the fact of the debt collector having had collection authority, and thus does not compel deletion of that reporting.

The CRA reporting manual clearly instructs that prior reporting should not be deleted based on payment of the debt.

[MaRain]

At RobertEG, regarding your post. Deleting accurate reporting of their collection based on the satisfaction of the debt? I agree  with this statement.

My basis is that as of today at 5:49am (PST), AFNI no longer has collection authority since they cannot collect on a paid debt. The OC was paid before further collection activity occured. I have checked all three of my CRs this morning (through each CRA) and AFNI is not listed so as of now, no further collection activity has occured. 

What debt is due and owing as of this moment? $0.

I believe that for AFNI to list it as a collection after today would be false since there is no amount due and owing. I willl also call (Edit) AT&T to confirm the $0 balance and request that they recall this account from AFNI. I plan on also calling AFNI to confirm that payment was made and the account has a $0 balance.

Thanks Robert for your insight, it keeps me on my toes and brings up points I might have otherwise missed!  

[DaBears]

Robert I apologize for not reading this post correctly. I was referring to if the debt was cancelled or returned to the OC then the CA has to remove their trade line.