Credit Cards Center Credit cards from our partners
Reply
Highlighted
New Contributor
Posts: 52
Registered: ‎01-25-2008
0

Should I pay the OC or the collection agency

I recently pulled my CR and I have a collection pending with NCO for a medical bill. However, my question is should I pay the OC or the collection agency (NCO) and how will it reflect on my CR? This is the only collection I have & it's affecting my credit score tremendously. I need some advise in how should I proceed. All suggestions are welcome..Thank you in advance!!! Smiley Happy

Established Contributor
Posts: 1,002
Registered: ‎12-06-2011
0

Re: Should I pay the OC or the collection agency

it is always recommended to PFD (in full rather than settlement) the OC instead of the CA. What you need to do is call the OC and find out if you can still make a payment to them. If they've sold the debt to a CA then you're gonna have to deal with the CA.

Starting Score: 486 EQ, 529 TU, 518 EX 12/6/2011 (FICOS - lender pull)
Current Score: 595 EQ SW 1/10/13 628 TU08 1/10/2013 593 EX (BoA HP) 1/5/12
Goal Score: > 620
Take the FICO Fitness Challenge! | Diamond Spade Garden Club Member: App free since 7/2012
Regular Contributor
Posts: 149
Registered: ‎04-29-2012
0

Re: Should I pay the OC or the collection agency

I have a question. If you arrange a PFD with the OC but a CA is reporting the account on your CR, what would make the CA delete their entry to your CR if you don't go through them? I went through this with an AT&T bill. I called AT&T after I saw the collection on my report and they said they would have it deleted if I paid them. Well, they later reneged on the deal and said they couldn't delete it and maybe the CA would if I called them. I called and they played hardball at first saying "if you had arranged payment through us, we would have done a pay for delete". They finally caved in and agreed to delete but it was a sticky situation.
Community Leader
Epic Contributor
Posts: 26,021
Registered: ‎03-19-2007
0

Re: Should I pay the OC or the collection agency

It is not always recommended, at least by me, to pay the OC when a debt collector is involved.

 

The OC, as was questioned in the prior post, cannot delete any reporting done by a debt collector, even if the debt collector is their own assignee.  They can request, but the debt collector has the right to report their own collection activity.  An OC cannot "recall" the fact of their collection referral or the reporting done by a debt collector.

 

If the reporting of the debt collector is considered a more serious derog than that reported by the OC, then getting the collection deleted is usually the preferred choice. 

 

If the debt collector wont bite on a PFD, then a fallback PFD offer to the OC might salvage at least the deletion of reporting done by the OC.

Established Contributor
Posts: 1,002
Registered: ‎12-06-2011
0

Re: Should I pay the OC or the collection agency

Yes, the above post recommendation works as well. I guess it all depends on how difficult the CA is to deal with. However, OP mentioned that it is a 'medical' bill and these work better in your favor if you pay the OC. Although, some users here have had success getting PFD medical removals thru the CA. It is ultimately up to each individual how you believe PFD will work best either thru the OC or CA.

Starting Score: 486 EQ, 529 TU, 518 EX 12/6/2011 (FICOS - lender pull)
Current Score: 595 EQ SW 1/10/13 628 TU08 1/10/2013 593 EX (BoA HP) 1/5/12
Goal Score: > 620
Take the FICO Fitness Challenge! | Diamond Spade Garden Club Member: App free since 7/2012
Regular Contributor
Posts: 240
Registered: ‎11-29-2008
0

Re: Should I pay the OC or the collection agency


goal_seeker wrote:

I recently pulled my CR and I have a collection pending with NCO for a medical bill. However, my question is should I pay the OC or the collection agency (NCO) and how will it reflect on my CR? This is the only collection I have & it's affecting my credit score tremendously. I need some advise in how should I proceed. All suggestions are welcome..Thank you in advance!!! Smiley Happy


I had 2  collections from NCO on my CR. One was medical, the other was not.   The OC was not reporting.  I sent a DV for both of them.  I got a form letter from both saying the same thing, that they may not have enough time to gather the information and they had requested the CRA to delete the listings from my CR.  The medical collection was deleted, but I then got a subsequent letter from NCO with information validating the other collection.  You might try sending a DV before paying and see what happens if you are not under a time constraint.  

Starting Scores TU 7/30/09 FICO 493 EQ 9/5/10 FICO 477 EX 11/14/2011 (lender pull) 575
Current Scores TU 5/31/2014 FICO 671 EQ 7/5/14 FICO 667 EX 5/31/2014 658 FICO
Goal Scores 700 across the board
Regular Contributor
Posts: 149
Registered: ‎04-29-2012
0

Re: Should I pay the OC or the collection agency

I think it all depends on who you're dealing with. I had an old medical collection and sent a PFD to the CA. They called and offered to delete if I paid over the phone. I did it (against some of the advice you read on here) without getting anything in writing. Within a week, the account was gone from all 3 credit reports.

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.