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How to deal with a Collection Agency?

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RobertEG
Legendary Contributor

Re: How to deal with a Collection Agency?

No, you cannot send a formal debt validation request to a debt collector that imposes any cease collection bar until the debt collector has first sent a formal dunning notice, which is only required after they have initiated communication with the consumer.

 

However, you can always call them and informally request information as to whether or not they now own the debt or otherwise have legit collection authority.  You will need some confirmation that debt collector 2 now has active collection authority before you can contact the CRA and have the collection reported by debt collector 1 removed under CRA deletion policy.

 

I would suggest making an informal call and attempt to obtain that information.

If you also wish to make a pay for not reporting offer to them, then you can include that in your call without waiting for them to first report or send dunning notice.

Message 11 of 18
Blazon
Valued Member

Re: How to deal with a Collection Agency?

Based on the forum's recommendation, I gathered additional information on my outstanding debt from the oringal creditor.  They informed me that my debt was sold to Alliant Capital Managment.  In turn, they handed it over for collections to Upstate Capital Services.  I learned that my $5,000 which was reported on my credit report was actually $6,800.  The collection agency who is handling my debt offered to reduce the amount to $3,400 (1.5 years aged debt).  

 

In returned, I asked them to provide in writing an agreement to delete the derogatory credit mark with the credit reporting agencies.  The individual who I spoke with said they could provide a letter showing the debt as paid ("Debt Settle"), but I said this form of communication would not remove the derogatory comment from my credit report.  For information purposes, the new creditor never added any derogatory information to any of my credit reports.  

 

After my call with the collection agency, the representative said they would check with the original creditor on how to remove the adverse credit once I make the agreed upon payment.  This seemed odd because Original Creditor does not own the debt any longer.  

 

Therefore, how do I get the derogatory credit off my file?  Can the new debt holder get it taken off?  Not sure how to proceed. I do have the funds to clear up the outstanding debt.  Ultimately, my goal is to get the adverse credit removed.  Is there a preferred letter format that is used to provide the CRA to take off my adverse remarks for this debt?  I feel the collection agency will help, but they are not knowledgable on how to remove.

 

I appreciate the forum's input or experience with my current situation.









Message 12 of 18
Remedios
Credit Mentor

Re: How to deal with a Collection Agency?

I'm not sure letter will help you, as what you're attempting to do is against CRAs reporting instructions  

PDF is ideal for consumer, but CRA do not want that info deleted, only corrected and/or updated. 

 

So, unless collection agency themselves requests TL be removed, I dont know how much success you'll have. 

If you want it removed without further complications, it will have to be done by CA. 

 

 

Message 13 of 18
Blazon
Valued Member

Re: How to deal with a Collection Agency?

Based on other comments within this Forum, I have read of success stories of other community members getting PFD.  It would be great to understand how these members were able to accomplish this task.  









Message 14 of 18
Remedios
Credit Mentor

Re: How to deal with a Collection Agency?

They were successful with those who are agreeable to such practice. There are a lot more CAs that will not do PFD than those who will

In general, it's easier when debt is medical and also, two of the largest debt buyers, PRA and Midland now have the official policy of doing PFD (Midland conditions it with debt being older than two years) 

 

Another huge debt buyer LVNV  will not. They are so big, they use other collection agencies to collect on their behalf

So, most of the success stories come from people doing PFD with those CA who are not opposed to it. 

 

Sometimes persistence pays off and it gets removed, and then there are instances where nothing can be done PFD wise. 

Message 15 of 18
Blazon
Valued Member

Re: How to deal with a Collection Agency?

Update on my collection account, I just mailed a check for the agreed upon settlement amount.  The collection agency agreed to send me a letter stating the debt is paid in full.  Before sending the check, they sent me a settlement letter stating the amount and the agreement that the debt will be settled.  

 

Once I received the confirmation letter, my next step is to contact the CRAs to disbute the debt is paid off.  My question to the forum is will the TL be removed?  Or will the Original Creditor will change from collection to paid / settled? How does the original creditor who sold this debt make the update to the CRA?

 

Thank you for the continued support and feedback.









Message 16 of 18
the_jan_b
Established Contributor

Re: How to deal with a Collection Agency?


@Blazon wrote:

Update on my collection account, I just mailed a check for the agreed upon settlement amount.  The collection agency agreed to send me a letter stating the debt is paid in full.  Before sending the check, they sent me a settlement letter stating the amount and the agreement that the debt will be settled.  

 

Once I received the confirmation letter, my next step is to contact the CRAs to disbute the debt is paid off.  My question to the forum is will the TL be removed?  Or will the Original Creditor will change from collection to paid / settled? How does the original creditor who sold this debt make the update to the CRA?

 

Thank you for the continued support and feedback.


I believe that the tradeline will be changed to "settled for less than full amount", or something similar.  I don't believe the tradeline will be removed simply because it was paid/settled, but I could be wrong; in which case if I am, I apologize in advance.

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Message 17 of 18
Blazon
Valued Member

Re: How to deal with a Collection Agency?

My debt was sold by the original creditor to another what is referred to as a Junk Debt Buyer (JDB), and the new owner of my debt did not report any derogatory credit to the CRA. Today, I made a settlement agreement and mailed my check to pay off the collection agency who is managing my account for the new debt buyer.  

 

Next step, I plan to send a dispute letter to the CRA with documentation showing the debt has been paid.  If the CRA attempts to confirm my payment with the original creditor, but the original creditor does not own the debt, would it be appropriate to eliminate this collection from my credit report?  

 

 

 









Message 18 of 18
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