Paid Original Creditor-How Do I Remove Collection Account?

[Anonymous]

Hello Everyone!

So thanks to everyone on these boards, we have made tremendous progress toward owning our own home!! Our final hurdle is 2 collection accounts that we need to have removed from our Credit Reports. One is with Convergent for an old cable bill with Cox for $238 and the other is with Diversified Collections for an old Dish Network bill for $109. Within the past week, we paid the balances due to Cox and Dish respectively. Now that the balances have been paid to the original creditor, should we just dispute the collection account on our credit reports to have them removed or how do we get the collection account off our reports since we paid in full to the original creditors? TIA!!

[xaximus]

I would definitely reach out to both and speak to them regarding the removal. Send GW letters as well, this may take some time but sooner or later, someone will make the adjustment and it'll be removed. As a last resort basis, you can dispute it but that may or may not work. I would suggest reaching out to the original CA's to see what they can do before pursuing that. As always, YEMV.

[RobertEG]

The collections were reported by the debt collectors, not the original creditors.

If you pay the original creditor, the OC can only agree as to deletion of their own reporting, and cannot enter a valid contract that binds the debt collector to also delete.

Additionally, the CRAs have a policy, which is incorported into their credit reporting agreements, that furnishers are not to delete reporting based on payment of the debt, and thus the debt collectors are under CRA policy not to delete.

Pyament of the debt is thus not basis for filing  a dispute with a CRA.

However, you can still send the debt collectors a good-will request that they may or may not choose to grant.

[spiritcraft1]

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@RobertEG wrote:

The collections were reported by the debt collectors, not the original creditors.

If you pay the original creditor, the OC can only agree as to deletion of their own reporting, and cannot enter a valid contract that binds the debt collector to also delete.

Additionally, the CRAs have a policy, which is incorported into their credit reporting agreements, that furnishers are not to delete reporting based on payment of the debt, and thus the debt collectors are under CRA policy not to delete.

Pyament of the debt is thus not basis for filing  a dispute with a CRA.

However, you can still send the debt collectors a good-will request that they may or may not choose to grant.

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If they were only a Collection Agency and not a JDB do they still have an account or basis to collect anything?  If they do not own the debt themselves, there is nothing left to collect and no legitimate reason to have an existing account??  Them reporting as paid, if they went that route would be false since they were paid no money.  If they were a JDB though, Cox for instance would have to forward funds to the JDB correct? 

I don't know if Convergent and Diversified Collections are collection agencies or Junk Debt Buyers (JDB's who own the debt).   If the former any reporting they do list, as a current account or as a paid account would be false.

[Anonymous]

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@spiritcraft1 wrote:

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@RobertEG wrote:

The collections were reported by the debt collectors, not the original creditors.

If you pay the original creditor, the OC can only agree as to deletion of their own reporting, and cannot enter a valid contract that binds the debt collector to also delete.

Additionally, the CRAs have a policy, which is incorported into their credit reporting agreements, that furnishers are not to delete reporting based on payment of the debt, and thus the debt collectors are under CRA policy not to delete.

Pyament of the debt is thus not basis for filing  a dispute with a CRA.

However, you can still send the debt collectors a good-will request that they may or may not choose to grant.

---

If they were only a Collection Agency and not a JDB do they still have an account or basis to collect anything?  If they do not own the debt themselves, there is nothing left to collect and no legitimate reason to have an existing account??  Them reporting as paid, if they went that route would be false since they were paid no money.  If they were a JDB though, Cox for instance would have to forward funds to the JDB correct? 

I don't know if Convergent and Diversified Collections are collection agencies or Junk Debt Buyers (JDB's who own the debt).   If the former any reporting they do list, as a current account or as a paid account would be false.

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This is what I was wondering as well. From my understanding, they are both debt collectors not debt buyers. If they are debt collectors, then having paid the orifinal debtor, there is nothing left for them to collect and I would think they would have to remove the collection. I plan to speak to both the original debtors and collection agencies later today and will post what I find out. Thank you all for your responses! I truly appreciate all the help I've received from these boards!!

[spiritcraft1]

If I were you I would not call the collection agency or even the OC.  I don't see that being any benefit if they are indeed not debt buyers and the OC could care less about you at this point.  If they did agree to call back the collection, that would be great but you would have to find someone that knew what you are talking about.  

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Anything they report after you pay the OC is false IMO. 

They can not say it is paid because they were not paid = false info

If they continue to report an active collection after there is no debt to collect, that = false info

PM sent...

[RobertEG]

A JDB is a debt collector if they are collecting on a debt that originated with another.

Neither the FDCPA nor the FCRA uses the term "junk debt buyer" or makes any separate reporting or collection practices distinction between debt collectors based on that terminology.

When a debt collector reports a collection, they are reporting that they have obtained authority to collect on a debt that did not originate with them.  The balance reported reflects the amount they are authorized to attempt to collect.

If the debt collector also happens to own the debt, then the reported balance reflects both the amount they are authorized to attempt to collect, and that they are now collecting for themselves.

If they dont own the debt, then it does not reflect a statement of debt owed to them, only that they are authorized to attempt to collect the  debt.  Payment of the debt does not alter that fact, and update of the balance to $0 means collection authority is terminated.

It does not mean that the collection must be deleted.

CRA policy informs debt collectors not to delete their reported collection based on payment of the debt, regardless of who owned the debt.

That policy clearly answers the question as to whether there is any deletion requirment based on payment of the debt.