Settle, pay CA in full or pay OC in full?

Anonymous · ‎01-27-2016

Here's my dilemma. My husband has an old debt with AT&T wireless that's been sent to a collection agency. It's reporting on his credit report as the CA.

I contacted AT&T and they are willing to accept payment but they won't give me in writing that they will update my account with the collection agency.

I've sent a pay-for-delete letter to the collection agency with a settlement but they will not agree to delete.

Should I send another pay-for-delete to the CA agreeing to pay in full? Should I just pay AT&T and hope they do their job and update the collection agency?

Thanks!

Anonymous · ‎01-27-2016

Are you in a rush to get this one taken care of? AT&T tends to move from one collector to the next, if there is no progress on the account.

Anonymous · ‎01-30-2016

I guess I'm not too much in a rush because I know there won't be much of a change in my score once it's settled.

Anonymous · ‎02-02-2016

@Anonymous wrote:
I guess I'm not too much in a rush because I know there won't be much of a change in my score once it's settled.

Then I would sit tight and watch your reports (for it to disappear) and your mail (for a notice from a new collector). If either of those occur, contact them and pay it. Thats how I got rid of DirecTV. Would have gotten rid of ATT that way too, but I failed to notice the letter I got was from a different collector and missed the opportunity.

RobertEG · ‎02-02-2016

I agree with Norman.

If you pay the creditor, they have no way of independently "taking care of" the reporting of the collection.

It is not their reporting, and they cannot report its deletion.

The debt collector can rightfully refuse to delete.

If a debt collector has their collection authorty terminated without payment of the debt, CRA policy requires that they report deletion of their collection.

That is the path that Norman is suggesting.

Anonymous · ‎02-12-2016

Am I understanding correctly that I should just wait for this collections to fall out?

I'd like to get them settled or removed as quickly as possible. Basically I know that a collection is never going to look good but I need it to look as good as possible so I can apply for an apartment as soon as possible.

@RobertEG wrote:
I agree with Norman.

If you pay the creditor, they have no way of independently "taking care of" the reporting of the collection.
It is not their reporting, and they cannot report its deletion.
The debt collector can rightfully refuse to delete.

If a debt collector has their collection authorty terminated without payment of the debt, CRA policy requires that they report deletion of their collection.
That is the path that Norman is suggesting.

Anonymous · ‎02-12-2016

AT&T does not sell the debt to the collection agency. The collection agency works on their behalf. Therefore, you can pay AT&T and they are obligated to instruct the agency to mark as paid. This is not how all OCs work, but AT&T doesn't assign the rights to the debt, they just give the CA a commission.

RobertEG · ‎02-12-2016

You have two options.

1. Call the debt collector and offer a pay for deletion.

If they accept, you pay and the debt is then discharged, and they have agreed to delete the reported collection.

2. Wait until you have into that a new debt collector has been assigned, such as by receipt of a new dunning notice from the new debt colletor.

Then pay them immediately, which will require deletion of the old collection.

The problem wiht option 1 is that many, if not most, debt collectors will not do a PFD.

However, if they do, it is the best option, as you have their agreement to delete their own reporting.

The problem with option 2 is that many debt collectors dont routinely delete their collection as soon as their collection authority has been terminated.

You will thus need to contact the CRA, show them proof of termination of the prior debt collector's collection authoriyt, and get them to delete.