Pay debt collector or original collector

[Anonymous]

I recently found out I have an account in collections through credit karma. It’s a charter bill from over a year ago that I was unaware I still owed after moving. This caused my credit score to go from 730 down to 633. I contacted the collections agency and did not admit to owning the debt but told them I had moved and they admitted that charter had the wrong address on file. She said I could pay it and they would notify charter and the credit bureau but this will still be on my credit as resolved not deleted will it not? I asked if they could delete it if I paid it in full since I was not notified of this. I then called charter and they said I could pay it off to them still and they would notify the debt collector. But I’m still worried this won’t remove it, just mark or we paid. I filed a dispute with Equifax and TransUnion stating that they had the wrong address. 

[Sandman771]

Have Charter recall it from the debt collector first then pay them. Trust me on this one. I paid the original creditor without recalling it and now I have a collection on my bureau. Just on EX  the others removed it. EX is just being obstinate. 

[Anonymous]

Well I just contacted charter again and they said that it would only resolve it not delete it. Should I just dispute this woh he collector?

[Sandman771]

PFD is one tool. But in my opinion, a paid collection is better than an open one. You can always try to GW it later. But have them recall it from the collector first then pay it is my advice. I got in a hurry and didn't do this and now I'm fighting a collection on my EX. Good luck. 

[Anonymous]

They told me they can’t recall it. I called them because you mentioned that. 

[RobertEG]

Reporting of a collection is separate, and done by the debt collector.

The creditor cannot agree to deletion of reporting that is not theirs.

If deletion of the collection is the goal, the first step is to get the reporting party (the debt collector) to delete their own reporting by making them a pay for deletion offer.

If they accept, the creditor is not involved in the deletion of the collection, and the agreement by the debt collector becomes a contract term that is enforceable.

If the debt collector will not agree to the voluntary deletion of their own collection, you can then attempt the circuitous route of getting the creiditor to first terminate their assigned collection authority ("recall the assignment").

CRA policy instructs debt collectors to delete their reported collection if their collection authority is terminated with the debt remaining unpaid.  That CRA policy is implemented to prevent two collections from simultaneously being reported on the same debt, as termination of debt collector 1 can lead to reasssignment or sale to debt collector 2, who can then report.  Removal of debt collector 1 upon termination of their collection authority prevents that double showing of collections.

The problem is that it relies upon a showing of termination of collection authority prior to paying the creditor, and then relies upon voluntary deletion by debt collector 1.

Either can results in problems.  It is thus preferable to obtain firm commitment from debt collection 1 to their own PFD deletion.

[Anonymous]

So if I’m understanding this correctly, my first step should be to send a letter to the collection agency in hopes of paying to delete?

[RobertEG]

Yes.

If they accept, then you have a binding contract term that becomes legally enforceable once you pay.

The problem arises if the debt collector will not agree to a PFD.

Then you can revert to the around-the-barn approach of offering to pay the OC under the condition that they first terminate their assigned collection authority.

[Anonymous]

Okay that’s what I’ll do. My only worry was Charter told me they can’t do anything other than notify the CA that the debt has been settled.

[Anonymous]

---

@Anonymous wrote:

I recently found out I have an account in collections through credit karma. It’s a charter bill from over a year ago that I was unaware I still owed after moving. This caused my credit score to go from 730 down to 633. I contacted the collections agency and did not admit to owning the debt but told them I had moved and they admitted that charter had the wrong address on file. She said I could pay it and they would notify charter and the credit bureau but this will still be on my credit as resolved not deleted will it not? I asked if they could delete it if I paid it in full since I was not notified of this. I then called charter and they said I could pay it off to them still and they would notify the debt collector. But I’m still worried this won’t remove it, just mark or we paid. I filed a dispute with Equifax and TransUnion stating that they had the wrong address. 

---

None of that will removes it. It will just get reported as paid.