topic Re: Collection Agency v. Original Creditor in Rebuilding Your Credit

Collection Agency v. Original Creditor

Cjethompson2017 — Thu, 18 Jun 2020 21:46:25 GMT

Hey all. I'm looking to see if anybody knows the answer to my question. I am trying to clean up my credit by paying things off. I have an account in collections that's from a power company we didn't realize we owed money to. My question is, if I pay the account off with the power company (I can pay either), will the collection company then have to delete their account from my report? I'm a little confused as to why I can pay either the original creditor or the collection agency. I'm obviously more interested in having the collection off my report, but they refuse to remove even if paid. I was told by the original creditor that I can supply the documents they give me after I pay to the credit agencies, and they will remove the collection. I obviously don't believe them. Lol.

Re: Collection Agency v. Original Creditor

Girlzilla88 — Thu, 18 Jun 2020 22:47:32 GMT

That fact is and can be true actually the OC if paid you can provide that to the CA and show the debt to be paid and ask they remove it as they have to report factual information so they can't report it as unpaid if you in fact have. Depending on the amount or when it is to fall off some CA will work out a PFD and some you can argue that the OC has been paid when they were bought by the CA to collect so there are many ways/factors and if you want to look up on PFD there is a Forum here a few that may be able to help Good luck

Re: Collection Agency v. Original Creditor

Cjethompson2017 — Thu, 18 Jun 2020 22:55:27 GMT

The ca is Transworld systems. The worst collection agency in history. Lol. I'm trying to work around the fact that they refuse to delete if paid.

Re: Collection Agency v. Original Creditor

Girlzilla88 — Thu, 18 Jun 2020 22:58:10 GMT

There is a Phrase you can use I'm not sure exactly what Rule or whatever it goes under but also try looking up that and what the CEO's information is email to them directly or send snail mail with SIGNED upon receipt and bug them 'politely' lol. *fingers crossed*

Re: Collection Agency v. Original Creditor

Anonymous — Fri, 19 Jun 2020 04:21:52 GMT

No pay the original creditor. Then they have to recall it from the collection agency and the collection agency is required to delete the collection. Don’t do it any other way.

Re: Collection Agency v. Original Creditor

Anonymous — Fri, 19 Jun 2020 04:22:20 GMT

Tell the power company you’re willing to pay in full as long as they recall it from collections.

Re: Collection Agency v. Original Creditor

Anonymous — Fri, 19 Jun 2020 11:40:04 GMT

@Cjethompson2017 wrote:
The ca is Transworld systems. The worst collection agency in history. Lol. I'm trying to work around the fact that they refuse to delete if paid.

I agree with you completely!

I have 2 medical CAs with Transworld and they *are* the WORST! I think I just have to stick it out til they drop off next year because they are just insufferable!

Sux because 1 is $105...just barely over $100, meaning it is just enough to be factored into some of my FICO scores. Darn!

Re: Collection Agency v. Original Creditor

Cjethompson2017 — Fri, 19 Jun 2020 19:11:37 GMT

I was able to tell the power company I'd pay in full if they recalled the collection. They say it's been done and will update in the collection company's database within 24 hours. Ironically, the collection agency called me this morning. I paid it last night. I'm really hoping these jokers will be forced to remove the collection account since I didn't pay with them and the power company called it back. I was just a little unclear of their procedures.

Re: Collection Agency v. Original Creditor

Anonymous — Fri, 19 Jun 2020 19:46:05 GMT

You got it exactly right, if they recalled it they have to delete it you are good.

Great job congratulations now just wait for it to update!

Re: Collection Agency v. Original Creditor

Cjethompson2017 — Fri, 19 Jun 2020 19:47:58 GMT

Thank you! As a side note, I feel like I've learned my lesson with credit. Lol. At least I hope I have. I'm ready for things to swing up!

Re: Collection Agency v. Original Creditor

Anonymous — Fri, 19 Jun 2020 19:53:42 GMT

So weird, I just posted about a similar situation. An old utility bill went to Transworld and they are definitely awful. My Transworld collection so far only updated to $0 instead of being removed (update took 7 days). I spoke with the OC (in my case it's National Grid NY) and they said they recalled the collection/withdrew power to collect from Transworld. I am waiting for a confirmation letter from NG. I spoke to a few reps and they all said to dispute directly with the CRAs. So I'm waiting. Good luck to you! Keep us posted. I'm curious if enough people start harassing them, if they will budge on actually deleting paid off collections that were handled through the OC....

Re: Collection Agency v. Original Creditor

Anonymous — Fri, 19 Jun 2020 20:21:22 GMT

It’s part of the process, first it’s updated to zero and then it’s deleted. They don’t have a choice they have to delete it, if it was recalled. And if not and it’s disputed and you show that it has to be removed. It’s not a maybe.

Re: Collection Agency v. Original Creditor

Cjethompson2017 — Fri, 19 Jun 2020 20:36:32 GMT

Thanks for your help! I have a quick question you might be able to answer? I'm reading one of your posts about how fico 8 scores work. How do I know if a charged off account is continuing to update every month? Am I correct to assume that if it is indeed continuing to report, then trying to settle with them to get them to stop reporting is the best?

Re: Collection Agency v. Original Creditor

Anonymous — Fri, 19 Jun 2020 20:42:30 GMT

@Anonymousthat's really reassuring to hear but I have read on here so many times that the CA has no obligation to remove the collection even if it was recalled, just that they have to update it to the right amount. Is there anything under the FCRA that supports this? I know CRAs have their own internal guidelines and stuff but I'm still bracing myself for the possibility of this collection staying on my record despite everything :/Edit: just to clarify, I'm only asking about the FCRA to add that to the foundation i'll be trying to dispute this on!! Not because I'm doubting you. I did a lot of digging on MF regarding transworld and paying OC to get a collection removed and a lot of the same sentiments I came across in every thread was CA has no obligation to remove anything unless it's reassigned to a different CA, and they of course have to update the amount correctly....

Re: Collection Agency v. Original Creditor

Anonymous — Fri, 19 Jun 2020 21:07:22 GMT

@Anonymous it is not part of the a FCRA. It's in the CRAs internal policy guidelines. Anytime it's recalled or assigned to a different collector, they have to delete because they don't want duplicate collections for the same debt. So if they don't delete it a dispute will. As long as it was recalled, you are good. Get some documentation showing it was recalled. That's all you'll need for the dispute.

Read this:

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/General-Scoring-Primer-and-Version-8-Master-Thread-rev-5-17-20/m-p/6023348#M169679

Re: Collection Agency v. Original Creditor

Anonymous — Fri, 19 Jun 2020 21:04:56 GMT

@Cjethompson2017 wrote:
Thanks for your help! I have a quick question you might be able to answer? I'm reading one of your posts about how fico 8 scores work. How do I know if a charged off account is continuing to update every month? Am I correct to assume that if it is indeed continuing to report, then trying to settle with them to get them to stop reporting is the best?

@Cjethompson2017 look at the date last updated on your credit report for the tradeline. If it's been a while, it's not reporting monthly; if it's current, it is.

Yes if it is reporting monthly it is continuing to suppress your scores and it would be a good idea to settle it now rather than later where you would suffer a catch-up penalty. Plus the reduced utilization will also boost your score.