How to prevent collectors from reporting

[PrinceCorwin]

My wife has severeal unpaid accounts from before our marriage that I am trying to take care of to fix her credit score. Two of them show on report as being in collections. I called one today and set up a payment plan for the next 2 months. A couple of other accounts have been sending letters to us for settlement offers but they are not showing on report as in collections (yet). I have two questions:

1. After I pay off the one in collections that I set up today (PIF by 7/22/17), what step should I take to ensure her credit report shows it as not in collections anymore?

2. Regarding the settlement offers of the accounts not yet in collections, what would be the best plan of attack to ensure they never go to collections?

[rmduhon]

1. GW letters asking for deletion.
2. If the others aren't collections then get them paid/settled as soon as you can because they can become collections at any time.

[RobertEG]

Once a debt collector has obtained legitimate collection authority, they are entitled to report their collection to the CRAs.

A debt collector can obtain collection authority either by way of assignment from the current owner, or by their purchase of the debt.

Payment of the debt under collection does not negate the fact that they had legitimate collection authority, and does not require deletion of the reported collection.

The debt collector must update their reporting to show Closed, and status to show paid or settled, as the case may be.

CRA reporting policy explicitly instructs debt collectors not to delete their reported collection based on payment of the debt.

However, if the consumer obtains agreement from the debt collector prior to paying the debt that the debt collector will, upon payment of the debt, delete the reported collection, then payment comprises a legal contract term, irrespective of CRA administrative policy.

If the debt collector fails to delete after receiving payment, then the consumer can pursue a breach of contract civil action.

If you simply pay a debt that has a reported collection, the FCRA requires the debt collector to "promptly" update their reporting to show the correct current status of closed and paid or settled.  One does not need to obtain express commitment of that statutory requirment.

However, update to show that it is no longer under collection is not the same as deletion of the reported collection.