Re: I have a question...

lyro · ‎07-07-2018

Hey everyone,

So, my credit is crap <500, and I am looking to rebuild it. I have another thread on here trying to figure out what are the best steps for me to take, but no replies so far, so I will ask one question that will hopefully help me out. So here is my question, if the original creditor closed my account and marked it as CO and then it was sold to a collection agency, if I were to work out a PFD with the collection agency, will both the Collections information and the CO from the original creditor be deleted or will I need to get in contact with the original creditor? And if I need to contact the original creditor, then how would I go about it? Like would I need to work out a PFD with them or?

Thanks in advance!

Anonymous · ‎07-07-2018

You need to offer the PFD to the CA as they now own the debt as for the original creditor you would need to request a goodwill removal of their reporting of the account as they can no longer accept payment from you.

lyro · ‎07-07-2018

Thanks for the help! How badly does the CO affect your score if the collection has been deleted?

bass_playr · ‎07-09-2018

There's no clear cut answer to that, because your score depends on everything that's on your report, not just one entry.

Also, regarding charge-offs, or really any time, I recommend that before you make payment to anyone, you try to determine the relationship between the OC and the debt collector. Sometimes, even if a debt is charged off, it could have been sent to a debt collector without being sold. For example, if a creditor sends your delinquent account to an outside debt collector before charging it off, and that debt collector is slow to report it to the bureaus, you could have a situation where the debt collector does not own it. It's possible, though not the most likely situation. I have seen it before.

Before I pay any debt collector, I want to make sure that they have a legal right to collect the debt, that the debt really is my obligation, and that the amount they are trying to collect is legit.

beutiful5678 · ‎07-09-2018

@bass_playr wrote:
There's no clear cut answer to that, because your score depends on everything that's on your report, not just one entry.
Also, regarding charge-offs, or really any time, I recommend that before you make payment to anyone, you try to determine the relationship between the OC and the debt collector. Sometimes, even if a debt is charged off, it could have been sent to a debt collector without being sold. For example, if a creditor sends your delinquent account to an outside debt collector before charging it off, and that debt collector is slow to report it to the bureaus, you could have a situation where the debt collector does not own it. It's possible, though not the most likely situation. I have seen it before.

Before I pay any debt collector, I want to make sure that they have a legal right to collect the debt, that the debt really is my obligation, and that the amount they are trying to collect is legit.

Additionally, they could have been assigned the collection rather than sold the collection. If the collection was assigned to the CA by the OC, you can contact the OC to inquire if they will recall the debt from collections so that you can pay them directly.