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YIKES-Please advise

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SunnyDaze77
Regular Contributor

YIKES-Please advise

Question:  Yesterday, I rcvd a letter in the mail from a collection agency stating that I owe $1045.00 for school and if I do not pay it, I could have a judgement placed against me.  The balance is from 2007.  I called the school that I attended 4 years ago and yes they told me that I had a balance-I knew that I left there owing some money but put off paying it until I could afford it.  Since then I moved, got married and moved again and haven't thought about it in a long time-Irresponsible me!

Okay, well today I went to the school to pay it cause well 1) I owed the money and 2) I owed the money.  I know most companies won't let you pay if they have already sent off to collection agency because they have to pay to do that.  She let me pay.  Does this mean they will pull it from the collection agency & it not show on my CR?  I thought about responding to the letter that I rcvd from the CA and asking them to validate the debt now that it is paid.  Should I send a DV to CRA's?The school asked if I did rcv the letter from the CA and I told them no that I was thinking of going back to school and taking some classes in the summer and when I called to see what all I needed to do to enroll and that's when I learned of the balance.  ok, ok so I did fib there but the point is I paid it.  Now what?  Please advise-been making progress on my CR and paying those that I do owe.

Thanks!!!!!


Starting Score: TU 543 EQ 570 (03/21/10)
Building Score: TU 641 EQ 629 EX 620 (11/06/11) Pulled Lender
Current Score: TU 680 EQ 683 EX 665 (04/23/12)
Goal Score: 720 Take the FICO Fitness Challenge
Message 1 of 9
8 REPLIES 8
RobertEG
Legendary Contributor

Re: YIKES-Please advise

The OC will notify the debt collector that the debt is paid.

The debt collector will have to do two things: cease further collection activity, and update the balance in the CA account to $0.  The OC has no authority to "pull back" any reporting done by the debt collector, so no, the debt collector does not have to delete their reporting of the collection.

Message 2 of 9
LIGHTNIN
Senior Contributor

Re: YIKES-Please advise

RobertEG,

Ok i understand, the OC has no authority to "pull back" any reporting done by the debt collector.

 

But can the OC pull back the debt itself from the CA, so the CA would have nothing to report?

FICO's May 2015 EQ764 ~~Live below your means and always keep an emergency fund -Love Everybody ~ Big Kenny ~ Big and Rich ~~~~~Credit Scoring 101 - Common Abbreviations - Freq Req Threads - Free Credit Reports - What Steps Do I Take?DV? PFD?
Message 3 of 9
mauve
Valued Contributor

Re: YIKES-Please advise

Call the school and see if there's anything they can do to help you.  They may not have the authority to, but the CA does have a continuing business relationship with them and they may not report / delete reporting if the school requests it.


Starting Score: EQ 583 TU04 619 EX 592 (lender pull) 2010
Previous High Score: EQ 700 TU04 712 EX 726
Current Score: EQ 740 TU(Discover) 750 EX(AMEX) 747
Goal Score: 740+ all around


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Message 4 of 9
SunnyDaze77
Regular Contributor

Re: YIKES-Please advise

I called the school today she said they will just contact the creditor and let them know it was PIF. *bummed*

Okay, so it's paid and I probably have just screwed up my score that I tried to improve on the last year. 

Can anyone guestimate how many points this new paid collection will be?  Thanks for all your help!


Starting Score: TU 543 EQ 570 (03/21/10)
Building Score: TU 641 EQ 629 EX 620 (11/06/11) Pulled Lender
Current Score: TU 680 EQ 683 EX 665 (04/23/12)
Goal Score: 720 Take the FICO Fitness Challenge
Message 5 of 9
LIGHTNIN
Senior Contributor

Re: YIKES-Please advise

IME, a recent CA  dinged by CS by 80 and 90 pts. YMMV.

 

ETA: If this CA shows up on your CR.....

You can send the CA a GW letter, asking nicely if they would delete.

FICO's May 2015 EQ764 ~~Live below your means and always keep an emergency fund -Love Everybody ~ Big Kenny ~ Big and Rich ~~~~~Credit Scoring 101 - Common Abbreviations - Freq Req Threads - Free Credit Reports - What Steps Do I Take?DV? PFD?
Message 6 of 9
RobertEG
Legendary Contributor

Re: YIKES-Please advise

Yes, in fact, if the OC is paid, they must notify the debt collector that the debt is paid, which in and of itself terminates any further collection authority by the debt collector.  The debt is gone.    From that point on, no additional activity later than the termination date could be reported except for a  current status of paid, and a $0 balance due.

Message 7 of 9
SunnyDaze77
Regular Contributor

Re: YIKES-Please advise

Since it's not on my CR yet, how long will it take to pop up on my CR? 

I don't have a DOFD for reporting, do you u think they would start with a date in 2007 or today's date?  Soooo frustrated with myself...to think I may have to wait 7 1/2 years for this Collection to fall off my CR. =( 


Starting Score: TU 543 EQ 570 (03/21/10)
Building Score: TU 641 EQ 629 EX 620 (11/06/11) Pulled Lender
Current Score: TU 680 EQ 683 EX 665 (04/23/12)
Goal Score: 720 Take the FICO Fitness Challenge
Message 8 of 9
RobertEG
Legendary Contributor

f thRe: YIKES-Please advise

While the debt collector could, if they wanted to be nasty, still report their collection to the CRA, it would be a waste of their time, and kinda make them look bad.

The main reason that a debt collector reports to the CRA is to put collection pressure on you.  With the debt now paid, there is really no business reason for them to report.  And if they did report, they would report a date opened as of the date they were assigned collection authority, but at the same time would have to report $0 owed for collection.  Kinda silly.  My bet is that they wont report unless they feel you have some unpaid fees still due to them.

As for DOFD, that was entered into your credit file by the OC at the time they did a collection referral.  FCRA 623(a)(5).  It is not up to the debt collector to now report any DOFD, and even  if they did, it would be required, under FCRA 623(a)(5), to match that reported by the OC.  I doubt they would be stupid enough to attempt to illegally reage your DOFD, particularyly siince their collection authority is now terminated.  I would not be very concerned with illegal reaging of the DOFD.

Message 9 of 9
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