Dealing with Collection Accounts

ASCENDANT — Sat, 26 Sep 2009 20:41:30 GMT

Hello All. I have been reading these forums for over a year and they have been an immense help in my efforts to clean up my credit. I haven't been able to find definitive answers in previous posts on two issues I have so I am writing for help.

I have two collection accounts I am trying to clear up.

One is a collection account from Portfolio Recovery Associates. They are collecting on a Con Edison utility account from Nov. 2005 (DOLA). Con Edison is no longer reporting, just the collection agency. I contacted Con Edison and was told they would accept payment but it would be in my best interest to pay the collection agency. The CSR said if I pay Con Edison directly there would be a lag period before it was reflected on my credit report. If I pay the CA it would be updated immediately. I don't want a paid collection notation, I want removal of the tradeline. I've seen two schools of thought on this situation on these forums. One school is: If the OC is no longer reporting and they agree to receive payment all you have to do is pay them and file a dispute with the CRA's about the CA having a right to collect a debt that no longer exists. School 2: You can pay the original creditor BUT they can transfer your payment to The CA thus nullifying your dispute opportunity and you will end up with a paid collection account. Does anyone know which one is right? I am trying to avoid contacting the CA and hope to just deal with the OC for the best chance of removal.

Collection 2:

Credit Solutions Corp. is collecting on a Sprint PCS account from July 2003 (DOLA). I contacted Sprint and they have no record of this debt. I know I had a Sprint account at this time and believe I still had a balance with them upon contract termination. Post Sprint I had a Nextel account (pre company merger) which they have recorded as Paid Satisfactorily. So, according to Sprint I don't owe them anything. I think they have a problem with record keeping since the two companies merged. My questions are: If Sprint sold the debt to the CA are they still required to keep records of the debt? If I DV the CA do they need Sprint to have the debt records to fully validate? I know it will fall of my reports soon, but I would like to clear it up now. If the CA can validate is my only recourse for removal to offer a PFD?

Thank everyone for reviewing and taking the time to answer my questions.

Re: Dealing with Collection Accounts

IOBA — Sun, 27 Sep 2009 21:06:48 GMT

If it were me, I would -

1. Pay Con Edison for the bill. ESPECIALLY if they are willing to accept the payment! AFTER it's been paid, you can ask that they remove it from the collection agency and to send you a letter that says the bill/the debt has been in paid in full. You can ask them to have the CA remove the tradeline from your credit report.

Since they are still willing to accept payment, there is a good chance that Con Edison still owns the bill.

(I have medical bills that I pay on. Every few months, they send it to a different collection agency. I still pay the original company every month. I think the reason they send it to collection agencies every few months is to try to force me to pay more, faster. I pay what I can, consistently, every month. If I have extra money that month, I pay extra on the medical bills. None of the collection agencies show up on my credit report. And I usually DV them.)

2. DV Credit Solutions Corp. When you DV them, ask for full media disclosure. And yes, Sprint should still have a record of it. If you owe the money, you can make arrangements to pay if off. Two possibilities...a) offer to pay the full amount with a PFD or b) offer to settle for a lesser amount (and still ask for a PFD).

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Dealing with Collection Accounts

Re: Dealing with Collection Accounts