Collection question

[mrnightsky]

Hello all, I have some questions for the credit experts out there.

I have successfully rebuilt my credit from the low 600s to where I am now in the mid 700s through a long and painful process.

However, one of my old Citi accounts that was closed had been sent to multiple collection agencies and over the years, I have been receiving collection letters in the mail that I have been ignoring.

In addition, I am still making a monthly payment directly to Citi in the amount of $25/month. The payments are reflected in the credit report because my balance keeps decreasing. This account is showing as Closed - Derogatory and/or Collection/Charged-Off.

Currently, Global collection is the owner of my balance and last night I received a collection letter from them telling me that they will accept a payment of appximately 25% of my total balance to settle this debt. 

Only Citi is reporting on my credit reports. No other collection agencies are currently reporting.

I had tried to call Citi to do a pay for removal but they refused to talk to me since my balance was already transferred to a collection agency.

Do you guys think I should settle with Global?

If I did, will my Citi account in the credit report show as "paid"? Or will it show as something else?

Is there any way I could ask Global to remove the Citi account on my credit report?

I'm comfortable with my credit score at the moment and I don't want to do anything to jeopardize it right now. 

What else do you think I should be on the look out for?

Thanks in advance for any and all responses.

[RobertEG]

If CITI is continuing to accept payments and is still reporting a balance under their account, they still own the debt.

Any collections reported over the years are assigned debt collectors, and not owners of the debt.

On what are you basing the conclusion that Global is now the owner of the debt?

If so, CITI should have updated their reporting to show a current debt balance of $0 owed to them.....

Can you clarify the basis for your conclusion as to current ownership?

[mrnightsky]

(1) When I call Citi to discuss payment for removal, they always tell me that I would have to contact the collection agency directly.

(2) I'm getting collection/settlement letters from Global Collection agency for the debt.

However, CITI is STILL showing the current balance in the credit report with the notes: Closed-Derogatory and/or Charged-Off/Collection (depending on the credit reporting bureau). As I stated before, no collection agencies is currently reporting on my report. I'm assuming this is due to my continuing payment directly to CITI.

What I'm worried about is, if I were to settle with Global, Global will then proceed to report the settlement on the credit report and hence, drop my credit score.

I do, however, would love to settle for 25% of the total debt (what's being offered currently) either with Citi or with Global without it affecting my current credit score and not worry about this anymore. 

[RobertEG]

A creditor can retain ownership of the debt, and assign authority to a debt collector to act as their agent for atttemted collection on the debt.

The creditor can then require the consumer to deal only with their assigned debt collector.

If a creditor has sold the debt to a debt collector, the creditor can no longer accept any payment on the debt, as they no longer own it.

It appears that CITI still owns the debt.

You can contact the debt collector and negotiate a settlement or pay in full, but with their agreement not to report their collection to any CRAs.

[mrnightsky]

Thank you for your response.

I will contact Global and negotiate with them to settle. Of course, I will ask them to send me a letter with the detail of the agreement before sending payment.

Thanks again!