best way to deal with collections account

[PrinceCorwin]

I just recently received a collections letter in the mail regarding a delinquent paypal account for $700 that I was hoping wouldn't surface buy now it has. It is from a third party agency. What would be the best way to go about taking care of it? I can afford to set up a payment plan but not sure who to contact... paypal or the collector

[RobertEG]

The first consideration is who owns the debt.

If the creditor still owns the debt, you can still theoretically deal with the OC if they are willing to take payment.

However, if the debt collector now owns the debt, any payments must be made to them.

The second considertion is whether or not you wish to request debt validation or dispute the accuracy of their reporting.

A timely DV will requrie them to cease active collection, but will also preclude payment negotiations until they have first sent validation.

The third consideration is whether or not they have reported to a CRA,

Since the post refers only to receipt of dunning notice, I presume they have not yet reported.

Debt collectors are often willing to accept a pay for not reporting offer even though they normally reject a pay for deletion offer.

You might wish to send a pay for not reporting offer if the debt is valid, and forgo a DV request.

[PrinceCorwin]

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@RobertEG wrote:

The first consideration is who owns the debt.

If the creditor still owns the debt, you can still theoretically deal with the OC if they are willing to take payment.

However, if the debt collector now owns the debt, any payments must be made to them.

The second considertion is whether or not you wish to request debt validation or dispute the accuracy of their reporting.

A timely DV will requrie them to cease active collection, but will also preclude payment negotiations until they have first sent validation.

The third consideration is whether or not they have reported to a CRA,

Since the post refers only to receipt of dunning notice, I presume they have not yet reported.

Debt collectors are often willing to accept a pay for not reporting offer even though they normally reject a pay for deletion offer.

You might wish to send a pay for not reporting offer if the debt is valid, and forgo a DV request.

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What would be the most efficient way to assess dept ownership?

[Anonymous]

If your credit report still shows the OC and that acct has a balance they most likely still own it. However if balance shows $0 Then they've sold it and the 3rd party collection hasn't reported it yet.