Paying off OC and still owe CA??!!

Anonymous · ‎02-01-2012

I sent a PFD letter to the OC (a local community college) and it was denied. The office manager was very pleasant but said they do no reporting what so ever and the CA does all that for them. She said my original balance with them is $360. She said if I paid them directly I'd have access to transcripts immediately vs having to waiting the once a month the CA reports to them. The CA is charging me $418 with their fees. So I tried to PFD the CA and let them know I contacted the OC and was told my balance was only $360 and that the office manager said she could accept payment by phone and I'd have immediate access to my transcripts. I used that in my PFD. Basically I said, OC is only asking for $360 but I will pay you $418 if you PFD. CA said no they will only report as PAID IN FULL and will not PFD. I said okay fine I will just pay OC and save myself the money if I can't get it removed. CA told me that if I pay the OC $360 (what I owe them!) and the OC contacts them (the CA) they WILL NOT REPORT THIS AS PAID IN FULL UNTIL THEY RECEIVE THE $$418 for THEIR FEES!! **bleep**! Is this correct??? I've never heard of this. Is this just a "scare tactic" that they're using trying to get me to pay them so they can earn their money. If I pay the OC then why should the CA get paid for "collecting" when they didn't?? I was thinking of paying the OC and if the CA doesn't mark it as paid I will dispute it with copy of receipt from OC showing balance is now zero. Will that get the status changed?

Is this legal?

Thoughts?? I live in KS. Not sure of the law.

Anonymous · ‎02-01-2012

If you pay it off with the OC, my understanding is that the CA can still report, but they have to show a $0 balance. You should not owe them the ~$50 in collection fees if you've settled directly with the OC. If they don't update to show $0, I'd do what you said you would do (send the receipt to the agency) and say that you do not owe the CA any money.

pizzadude · ‎02-01-2012

@Anonymous wrote:
If you pay it off with the OC, my understanding is that the CA can still report, but they have to show a $0 balance. You should not owe them the ~$50 in collection fees if you've settled directly with the OC. If they don't update to show $0, I'd do what you said you would do (send the receipt to the agency) and say that you do not owe the CA any money.

+1. If you don't pay the CA then you do not owe them any fees. Once the account is settled with the OC then it is settled with the CA.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX

RobertEG · ‎02-01-2012

State laws govern what a debt collector can and cannot charge for their collection activities. Since collection contracts are between the OC and the debt collector, and thus you never contracted with the debt collector for their "services," most state laws have fairly restrictive limitations on what they can assert as separate debt to them. Since they did not own the debt, I doubt that they can assert any accrual of interest on the debt that would be separately owed to them. Collection fees might be a different matter.

However, just dont assume that fulfilling your debt obligation with the OC will require the debt collector to ignore any legitimate fees that they might be due.

Check out your state regulations on debt collection practices. They vary greatly.

Anonymous · ‎02-01-2012

Whats a good site to check state regulations out at? I'm sure I could google but I want a site I know has correct info.