Paying OCs?

[maluba]

I was looking at another thread and I was wondering, even if your account got transferrred from an OC to a CA, could you still pay the OC? I thoght once it was transferred, that's it. Especially if it was a CO. Full disclosure, I really would prefer that option, dealing with the OC. They were the ones who provided the service to us in the first place, so I would rather pay them...but if the time for that is past, oh well...

[guiness56]

If the debt was assigned to a CA, then the OC still owns it.  You can try to pay them.  Sometimes, once assigned to the CA, the OC won't take any payments from you.  But you can always ask.

If it was sold you have no recourse except to deal with the CA as they now own it.

[Jutz]

There are probably three scenarios in play when dealing with a CA
.

1. Charge Off - This is what you mentioned.  With a charge off, the OC has written off the debt as a loss as an internal bookeeping measure.  The debt has at this point been sold to a CA.  Paying the OC is not an option as this point, as the balance is probably reported as $0.  Paying the debt with the CA, even in a PFD situation, will not normally result in an OC tradeline from being deleted.  This would be a separate GW process to the OC.
2. Debt Sold to CA - The OC will sell your debt at a fraction of the cost to a willing CA in order for them to collect as they see fit.  If the OC was reporting (They won't in most cases) they need to mark the balance as $0.  It would be very difficult, in most cases impossible to pay the OC in this scenario.
3. Debt Assigned to CA - The OC will pay a CA to collect for them.  This is popular, as it outsources the messy process of collection.  The OC can report, and would report the total balance as it sits.  The CA will report, with the same balance as it sits.  In this scenario, you can negotiate a PFD, either with the CA or the OC.  If you PFD the OC, this does not require the CA to delete it's tradeline.  However, the OC can generally move the CA to delete based on their relationship.  There is no formal "pulling back" of an account, it still needs to be manually deleted from the CRAs by the CA.  If the CA is the only one reporting, you can PFD directly with the CA.

[guiness56]

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@Jutz wrote:

There are probably three scenarios in play when dealing with a CA
.

1. Charge Off - This is what you mentioned.  With a charge off, the OC has written off the debt as a loss as an internal bookeeping measure.  The debt has at this point been sold to a CA.  Paying the OC is not an option as this point, as the balance is probably reported as $0.  Paying the debt with the CA, even in a PFD situation, will not normally result in an OC tradeline from being deleted.  This would be a separate GW process to the OC.
2. Debt Sold to CA - The OC will sell your debt at a fraction of the cost to a willing CA in order for them to collect as they see fit.  If the OC was reporting (They won't in most cases) they need to mark the balance as $0.  It would be very difficult, in most cases impossible to pay the OC in this scenario.
3. Debt Assigned to CA - The OC will pay a CA to collect for them.  This is popular, as it outsources the messy process of collection.  The OC can report, and would report the total balance as it sits.  The CA will report, with the same balance as it sits.  In this scenario, you can negotiate a PFD, either with the CA or the OC.  If you PFD the OC, this does not require the CA to delete it's tradeline.  However, the OC can generally move the CA to delete based on their relationship.  There is no formal "pulling back" of an account, it still needs to be manually deleted from the CRAs by the CA.  If the CA is the only one reporting, you can PFD directly with the CA.

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This is not true.  Not all COs are sold to CAs.

[Jutz]

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@guiness56 wrote:

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@Jutz wrote:

There are probably three scenarios in play when dealing with a CA
.

1. Charge Off - This is what you mentioned.  With a charge off, the OC has written off the debt as a loss as an internal bookeeping measure.  The debt has at this point been sold to a CA.  Paying the OC is not an option as this point, as the balance is probably reported as $0.  Paying the debt with the CA, even in a PFD situation, will not normally result in an OC tradeline from being deleted.  This would be a separate GW process to the OC.
2. Debt Sold to CA - The OC will sell your debt at a fraction of the cost to a willing CA in order for them to collect as they see fit.  If the OC was reporting (They won't in most cases) they need to mark the balance as $0.  It would be very difficult, in most cases impossible to pay the OC in this scenario.
3. Debt Assigned to CA - The OC will pay a CA to collect for them.  This is popular, as it outsources the messy process of collection.  The OC can report, and would report the total balance as it sits.  The CA will report, with the same balance as it sits.  In this scenario, you can negotiate a PFD, either with the CA or the OC.  If you PFD the OC, this does not require the CA to delete it's tradeline.  However, the OC can generally move the CA to delete based on their relationship.  There is no formal "pulling back" of an account, it still needs to be manually deleted from the CRAs by the CA.  If the CA is the only one reporting, you can PFD directly with the CA.

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This is not true.  Not all COs are sold to CAs.

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Sorry, you're right.  I was referring to scenarios where you'd be dealing with a CA though, and by OP's scenario, he has both a CA and OC in play.

[guiness56]

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@Jutz wrote:

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@guiness56 wrote:

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@Jutz wrote:

There are probably three scenarios in play when dealing with a CA
.

1. Charge Off - This is what you mentioned.  With a charge off, the OC has written off the debt as a loss as an internal bookeeping measure.  The debt has at this point been sold to a CA.  Paying the OC is not an option as this point, as the balance is probably reported as $0.  Paying the debt with the CA, even in a PFD situation, will not normally result in an OC tradeline from being deleted.  This would be a separate GW process to the OC.
2. Debt Sold to CA - The OC will sell your debt at a fraction of the cost to a willing CA in order for them to collect as they see fit.  If the OC was reporting (They won't in most cases) they need to mark the balance as $0.  It would be very difficult, in most cases impossible to pay the OC in this scenario.
3. Debt Assigned to CA - The OC will pay a CA to collect for them.  This is popular, as it outsources the messy process of collection.  The OC can report, and would report the total balance as it sits.  The CA will report, with the same balance as it sits.  In this scenario, you can negotiate a PFD, either with the CA or the OC.  If you PFD the OC, this does not require the CA to delete it's tradeline.  However, the OC can generally move the CA to delete based on their relationship.  There is no formal "pulling back" of an account, it still needs to be manually deleted from the CRAs by the CA.  If the CA is the only one reporting, you can PFD directly with the CA.

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This is not true.  Not all COs are sold to CAs.

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Sorry, you're right.  I was referring to scenarios where you'd be dealing with a CA though, and by OP's scenario, he has both a CA and OC in play.

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True.  That's why OP needs to find out if it was sold or assigned.  If it was just assigned he can still deal with the OC, if they will allow it.

[Jutz]

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@guiness56 wrote:

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@Jutz wrote:

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@guiness56 wrote:

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@Jutz wrote:

There are probably three scenarios in play when dealing with a CA
.

1. Charge Off - This is what you mentioned.  With a charge off, the OC has written off the debt as a loss as an internal bookeeping measure.  The debt has at this point been sold to a CA.  Paying the OC is not an option as this point, as the balance is probably reported as $0.  Paying the debt with the CA, even in a PFD situation, will not normally result in an OC tradeline from being deleted.  This would be a separate GW process to the OC.
2. Debt Sold to CA - The OC will sell your debt at a fraction of the cost to a willing CA in order for them to collect as they see fit.  If the OC was reporting (They won't in most cases) they need to mark the balance as $0.  It would be very difficult, in most cases impossible to pay the OC in this scenario.
3. Debt Assigned to CA - The OC will pay a CA to collect for them.  This is popular, as it outsources the messy process of collection.  The OC can report, and would report the total balance as it sits.  The CA will report, with the same balance as it sits.  In this scenario, you can negotiate a PFD, either with the CA or the OC.  If you PFD the OC, this does not require the CA to delete it's tradeline.  However, the OC can generally move the CA to delete based on their relationship.  There is no formal "pulling back" of an account, it still needs to be manually deleted from the CRAs by the CA.  If the CA is the only one reporting, you can PFD directly with the CA.

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This is not true.  Not all COs are sold to CAs.

---

Sorry, you're right.  I was referring to scenarios where you'd be dealing with a CA though, and by OP's scenario, he has both a CA and OC in play.

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True.  That's why OP needs to find out if it was sold or assigned.  If it was just assigned he can still deal with the OC, if they will allow it.

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OP specifically mentions a CO, which leads me to believe that is the situation

[guiness56]

OP specifically mentioned a CO, an OC and a CA.

Not all COs are sold and/or assigned to a CA.  Sometimes the OC retains them.

OP did mention it was transferred to a CA.  What I was trying to find out was it transferred (assigned) or transferred (sold).  If the debt was sold to the CA then he/she has to deal with the CA.  If it was assigned, he can still deal with the OC if the OC will allow it. 

[Shogun]

What does your CR say?  Is the OC reporting a balance?  If they are, then it is only assigned.  If it shows a zero balance, it's sold.

[maluba]

I thought I replied to this earlier, but I checked and they have been sold to the CAs. Bummer.