will returning equipment on my cable/collection bill hurt me more than help?

[doeblinv]

I have a collection with a cable company from 5/2009. They just sold it Oct 2010... My question is if I just retruned the equipment I was billed for will this hurt my score now? Will it be recent activity on the account? I hear it goes off of date of last activity for the 7 years and I hear it is 7 years from date of first deliquency... Which is correct for Texas? 

[RobertEG]

The federal FCRA bases the discontinuance of inclusion of a collection in your CR on one single date, which is the DOFD on the OC account.  No date of later activity is relevant.  Collections must be discontinued from inclusion in your CR no later than 7 years plus 180-days from the date-certain DOFD.  FCRA 605(c).

I dont believe that the Texas version of the FCRA sets a different period, but if it does, it could only be shorter than the 7 years plus 180-day period set forth in the federal FCRA.  States cannot set periods beyond that of the federal statute.

Returning the equipment should result in no additional, future charges being assessed, but wont relieve you of obligation for the fees that accrued prior to return of the equipment.  Thus, it wont compel deletion of the collection, and wont help or hinder your immediate credit scoring of the collection.  Even if you pay all fees assesed under the collection, paying the debt wont delete the posting of the collection itself, and thus wont improve your credit score.

[doeblinv]

also I have just found out that the CA is saying that the OC should not have accepted the equipment because they no longer owned the debt.... I made sure with the cable company that they could accept it and she assured me they could.... how will this affect me? They will not do a PFD only update as paid even if I do make the payment for the equipment so I know that will not help me especially when I do not even have the equipment. I am trying to buy a house and was just trying to get a better  report and this is the most recent collection on my account..... Since I did return the equipment, and I have a receipt showing I did, will the CRA remove? I already disputed once and they verified but I did not have the receipt at that time.... This is my most recent collection from 5/09 and I have 5 other charge offs from 10/5 from my divorce..... How do I handle this to get the best score?? I already paid my debt down to 24% debt...

[witanga]

I had that same issue back in 2008, the cable company sold the debt and I was stuck with the boxes. Out the blue one of the outside contractors for thecompany called and asked me was I still interested in cable with them, of course I was. He took the old boxes back and started me a new service, the cable company updated the account and the amount I owed went from $1200 to $400, I paid the collection agency. It stayed on my account for a good year as a paid collection account, I good willed them last week and they agreed to delete it off my credit profile.

[doeblinv]

well I am just not sure who to pay the balance... the lady who took my equipment said I could pay her, then the CA said I can only pay them and when I called Charter the next lady said I could not pay Charter! So I do not know who to believe... If the lady who took my equipment was wrong, then why should that be my problem. But I need this account off my credit. I have 4 charge offs but they are about to be 7 years old all within 7-9 months. If the OC is willing to take my money should I pay them? I do not want recent activity on my report either though, I do not know what to do to make it go away!

[llecs]

Who is reporting?

[doeblinv]

Credit management the ca.

[llecs]

You'd want to send a PFD to the CA at this point, if not sent already.

[doeblinv]

Well I will do that. I did ask for that when I called them and they said there company dosnt delete items. I know now I should have never called them. But I guess I can still send a letter. Hopefully they can or better yet will.

[RobertEG]

The party who owns the debt can always choose to accept payment. Sometimes they wont, but they can.

A party who does not own the debt can accept payment only if they are an assigned debt collector for the party who owns the debt.

What this means is that if the OC owns the debt and has an active assignment to a debt collector, you could pay either.

If an OC sells a debt, they are not an assigned debt collector, and could no longer accept payment. Then you could only pay the debt collector.

Determing current ownership of the debt can be a bit tricky, as it is not information that is specifically required to be reported to a CRA.

One way to determine ownership is to look at the current balance being reported by the OC.  If it shows $0, and the debt remains unpaid, and a balance is still shown as under collection by the debt collector, that means the OC has sold the debt to the debt collector.  Other than that, your CR probably wont, in and of itself, indicate ownership.

I have seen situations where the OC, specifically a cable company, who no longer owns the debt, will accept payment.  A front-desk clerk who does not understand the legalities.  That is a no-no on their part,and creates serious problems.  The debt collector rightfully does not recognize this as payment of the debt owed to them.

In trying to think of a way to determine ownership in such a situation, I offer the following.  If the debt collector maintains that they have ownership, and the OC is still reporting a non-zero debt, then you could flle a direct dispute under FCRA 623(a)(8) with the OC for inaccurate reporting of a debt balance under their account.  Supporting documentation would be the statement, preferably in writing, by the debt collector stating that they own the debt.  That will force the OC to verify ownership in writing, or else update their account balance to $0.  With that outcome, you would be entitled to a refund of any payments incorrectly accepted by them.