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collection agency vs oc

New Contributor

collection agency vs oc

If a collection agency is collect on behalf of the oc could a person go back to the oc and pay them and force the collection agency to remove their collection from your credit report? Any one ever try this?
Message 1 of 20
19 REPLIES
Moderator Emeritus

Re: collection agency vs oc

If the CA ends up deleting because you paid the OC, then it would be because the CA chose to delete on their own. They don't have to delete, and most will not, but they should update the TL to reflect a $0 balance. Depending on the OC-CA agreement, the OC is either supposed to forward the $$$ to the CA or the CA is to be notified of the payment and reflect accordingly...it depends on who owns the debt.

Message 2 of 20
Valued Contributor

Re: collection agency vs oc


tom1468m wrote:
If a collection agency is collect on behalf of the oc could a person go back to the oc and pay them and force the collection agency to remove their collection from your credit report? Any one ever try this?

It really depends on who owns the paper (debt). If the OC still owns the debt and has sublet the collection to a CA, then yes you should be able to pay the OC by having them recall the account from the CA. This will result in the CA tradeline being deleted, but not the OC tradeline. You can PFD and/or GW the OC once the account is settled. To find out who actually owns the debt you can DV the CA. Even with the very limited basic response to a DV letter you should be told who owns the debt. Another way is to look at your credit report for current ownership assuming its reported correctly. If the debt shows as "charge off" but with a balance showing (rather than $0) the OC still owns the debt.

 

Don't always go on what a CSR tells you from an OC either, you need to contact the collections department of an OC for a "recall". Many charged off debts are sold as a packaged portfolio, but at the same time many are first sublet to CAs on a commissioned basis (25 to 40 percent commission paid on collection).   

 

As far as your original question, IF the debt is still owned by the OC, yes you can pay them directly and remove at least the CA tradeline but its not always as easy as a call to customer service.

Message 3 of 20
New Contributor

Re: collection agency vs oc

So pfd may be my best option then?
Message 4 of 20
Valued Contributor

Re: collection agency vs oc


tom1468m wrote:
So pfd may be my best option then?

As long as the OC owns the paper, yes IMO.

Message 5 of 20
New Contributor

Re: collection agency vs oc

After speaking with them its was clear the hospital owns the debt still, they are collecting on behalf of the hospital. What I was thinking was to go to hospital and tell them if they pull if from collections and then send me a bill that I would pay it.

 

Then dispute with cra the collection agency reporting to credit report

(the hospital is not reporting to any of my reports)

 

All this crap messes with my head

Message 6 of 20
Valued Contributor

Re: collection agency vs oc


tom1468m wrote:

After speaking with them its was clear the hospital owns the debt still, they are collecting on behalf of the hospital. What I was thinking was to go to hospital and tell them if they pull if from collections and then send me a bill that I would pay it.

 

Then dispute with cra the collection agency reporting to credit report

(the hospital is not reporting to any of my reports)

 

All this crap messes with my head


Good news!

 

If the OC is not reporting the account, once its pulled back or paid to the OC, the CA has no standing. Just remember that CAs use credit reporting as a means to leverage payment, they could care less about your credit report other than poisoning it helps them collect.

Message 7 of 20
New Contributor

Re: collection agency vs oc

I am praying its good news.
I spoke with hospital yesterday and they are suppose to call me back this evening about pulling accounts from ca ....if they are willing then i will dispute with cra then pay hospital.... does this sound like the right approach?
Message 8 of 20
Valued Contributor

Re: collection agency vs oc


pipeguy wrote:

tom1468m wrote:

After speaking with them its was clear the hospital owns the debt still, they are collecting on behalf of the hospital. What I was thinking was to go to hospital and tell them if they pull if from collections and then send me a bill that I would pay it.

 

Then dispute with cra the collection agency reporting to credit report

(the hospital is not reporting to any of my reports)

 

All this crap messes with my head


Good news!

 

If the OC is not reporting the account, once its pulled back or paid to the OC, the CA has no standing. Just remember that CAs use credit reporting as a means to leverage payment, they could care less about your credit report other than poisoning it helps them collect.


This is not true. Just because the account is owned by the OC and assigned to the CA, does not mean they are required to do anything more than report the balance as 0 if it is paid to the OC. They are under contract to the OC to collect this debt. They still have standing, even if the account is paid to the OC.

 

What you are stating does have some validity in regards to 'pulling' the account back from the CA, but this is just something the CA may agree to in order to keep the OC happy as THEIR client, but from standpoint of CRAs and how it reports, they CA has to do nothing more than report the current balance; there is nothing that can force their hand to deletion.

 

I had luck convincing an OC in a similar situation to recalling the account from the CA. They did, wrote a letter to CA and I paid the OC. The CA did not remove, I disputed it through the CRAs and it came back verified. I did a direct dispute with the CA and they updated the balance to zero but did not delete. I then even took the step of doing a mail-in dispute with the CRAs showcasing the letters from the OC to the CA, the balances at 0, and a notarized letter from the OC indicating the debt as paid. No dice. No deletion.

 

Only after a harsh letter from the billings manager at the hospital to the president of their collections company did this account get removed. So yes. It can happen, but it might not be as simple as it looks on paper.

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 09/14: TU: 784 | EQ: 752 | EX: 784
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession


Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $13900, Citi/Home Depot $8500, Capital One Cash Rewards $3500, BOA $7500 Total Utilization: 3%. AAoA: 2yr, 9mth. INQS: 1 TU, 1 EQ, 3 EX
Message 9 of 20
New Contributor

Re: collection agency vs oc

Hmmmmm well now i wonder ...i thought i was going the right direction.....but i guess their cant really be a bad direction at this point.....right?
Message 10 of 20