CA (Alliance One) calling about collection but not showing collection on my report?

[SLR72689]

Alliance One is blowing my phone up about this collection. The debt is legitimately mine - it's from a charged off Firestone card. Credit First was the company for Firestone card and that's shows up as a charge off on my report. It shows Alliance One made an inquiry in September of 2012 but there is no collection from them on my report.

They're offering me a settlement ($490 for 790$) and that it would show up on my report has "paid in settlement" or something along those lines. Should I hold off and see if it ever appears on my report? I have the money to pay the $490. But since it's not on my credit report as a collection, I don't know what to do about this.

Any suggestions/advice would be appreciated!!

[guiness56]

I would send them a DV letter now.  It will start the cease collection process.

[SLR72689]

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@guiness56 wrote:

I would send them a DV letter now.  It will start the cease collection process.

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Even if I've already talked to them via telephone without asking for debt verification? 

[guiness56]

Yes.  The DV needs to be in writng.  There is nothing wrong with asking for it now.  It will keep them from reporting.  On the other hand, if you know it is yours you can always offer a modified PFD for not reporting.

[SLR72689]

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@guiness56 wrote:

Yes.  The DV needs to be in writng.  There is nothing wrong with asking for it now.  It will keep them from reporting.  On the other hand, if you know it is yours you can always offer a modified PFD for not reporting.

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I think I'll send a DV just to delay the process so I can save and pay the whole thing and offer a PFD. Now to find the address since there is no reporting address on my report...

When I talked to them on the phone last week and they were trying to discuss a settlement, they kept saying the account manager will e-mail me. Is that just as good as a letter via mail?

[SLR72689]

AND is it okay to ask for a DV over phone or should I mail a certified letter?

[guiness56]

No, send it mail CMRRR.  You have a paper trail.

[SLR72689]

So I called CFNA (the original creditor) today about my account, just to see what they would say. She told me that my account has been charged off (already knew) and that it was with their legal department. 

The CA calling me is Alliance One. Is it possible Alliance One is the legal department or Alliance One is dealing with the collection and it's being reported through CFNA??

I didn't have the chance to talk to the legal department because they were already closed for the day.

[SLR72689]

I talked to CFNA's legal department today. They still own the debt, Alliance One is the "outside company" who is collecting on the debt, hence why Alliance One is not reporting on my credit. 

Now my question is... since a CA isn't reporting it as a collection, is that charge off, that was from 2011, dinging my credit more and more? Would it benefit me more to pay off a more recent collection? 

[guiness56]

If the CO balance and CL are being reported it is factoring into your utilization.  By paying it off, it would be forever removed from your utilization.  However, the CO impact will still remain for almost 7 years.  Though they fade over time, it is a major derogatory.

Alliance One can still report as a collection, whether you pay the OC or not.  They would just need to report as a paid collection.  And being a new collection would impact your score more than the CO already is because it would be new.

Did you ask the OC about paying them and recalling the debt from the CA?