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Last month, I requested from a CA the validation of a 4-year-old medical debt collection that appears on my credit report. In reply, I've received a letter from the CA advising that they are unable to verify, have ceased collection of the account and have returned it to the OC, and have requested of the CRAs that the account be deleted from my report. So far, so good.
I'd like to fully resolve this matter. For the sake of argument, assuming that the debt is valid, I am willing & able to pay in full as long as there's no possibility that the account will reappear on my CR as a paid collection or a paid late account.
Is this possible and, if so, what are the next steps?
1) Letter to OC with the offer to PIF in return for their agreement that no steps will subsequently be taken by them or any assignee of the debt to report the debt as late or paid in collect?
2) Just phone them up and offer to pay by credit card?
3) Some other course of action?
Guidance welcome.
EQ | 841 | 5 INQ (Auto, CC, HELOC, 2 mort) | 7y2m |
EX | 812 | 5 INQ (2 CC, 2 mort, HELoan) | 6y11m |
TU | 829 | 4 INQ (3 CC, 1 mort) | 6y6m |
5/24 | 3/12 | AoYA 0m | AoOA 23y6m | ~3% |
Step 1 is recommeded, provided they currently have no assignment to another debt collector.
If they have already assigned to a new debt collector, then the new debt collector already has authority to report their collection.
You would need to get the creditor to first terminate their assignment to the new debt collector in order to prevent reporting of a collection.
Thanks.
I called the the OC. They advised that the debt has not been returned to them and, according to their records, it was with the collection agency to which they orginally sold/transferred it -- which is not the one that reported the debt to the bureaus.
Is it common for one agency to sell a debt to another? In any event, this would appear to mean that the debt is back with the 'original' CA.
While I'm content to pay the OC, I really have no desire to pay (or even contact) another CA -- unless this is a window to resolve the debt with finality, without my credit record being adversely impacted. As matters now stand, the collection has been removed from my record -- but presumably there's a 3-year window for the 'original' CA to report the debt as a collection. (Reminder: this is a 4-year-old medical debt.)
Bottom line, given this non-linear progression, is better to reach out proactively or wait to be contacted?
Again, any & all guidance welcome.
EQ | 841 | 5 INQ (Auto, CC, HELOC, 2 mort) | 7y2m |
EX | 812 | 5 INQ (2 CC, 2 mort, HELoan) | 6y11m |
TU | 829 | 4 INQ (3 CC, 1 mort) | 6y6m |
5/24 | 3/12 | AoYA 0m | AoOA 23y6m | ~3% |
Is it common for one agency to sell a debt to another?
Yes.
I am going to chime in, I have a medical debt that went to collections 4 years ago, it was for $60 it was a principle type situation.
I went to a doctors appointment and because the quacke doctor, had been golfing and drinking the day before he was running 3 hrs late. I told them Cancel my appointment I am not waiting on the jerk, well the jerks sent me to collections and never told me.
Fast forward to this year. its been 4 years yes it shows collections non payment, but I was still able to get an Amex (3), Discover, CareCredit, and Paypal MC, BofA.....so if your like me and its a Priciple type situation F them.
@Adkins wrote:Is it common for one agency to sell a debt to another?
Yes.
Its also common for one agency to HIRE another agency to handle the debt.
Adding feedback received from another forum, which suggested that the CA which reported the collection was a JDB, and never had authority to pursue the debt. The more I think about the situation, the more compelling I find that line of thinking.
EQ | 841 | 5 INQ (Auto, CC, HELOC, 2 mort) | 7y2m |
EX | 812 | 5 INQ (2 CC, 2 mort, HELoan) | 6y11m |
TU | 829 | 4 INQ (3 CC, 1 mort) | 6y6m |
5/24 | 3/12 | AoYA 0m | AoOA 23y6m | ~3% |
You need to contact the agency that the medical provider sent the debt to.