Received collection notice but not on credit report yet

[bass_playr]

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@Brokenarrow70 wrote:

Hi bass_playr,

Thanks for your reply, this debt is about 3 yrs old and this company bought it off another collector. Why? i don't know but this debt was never been reported to the 3 major CRA's. I got this notice from Transworld Systems Inc. and on the notice it say that my account was taken over by them from another collector. IMO i think they are trying to validate the debt since they are asking me to dipute the account or outright pay it, either way i can't ignore this because i am working with a mortage lender. I am trying to find out if anyone else has been in this position before and what happed.

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OK, so if your credit report shows any inquiries about this mortgage search, debt collectors come out of the woodwork on these because they know most people will pay that debt so they can keep their mortgage possibilities open.  If they do report, mortgage lenders will demand that you pay off that debt, so as long as you believe you do owe that amount, you would be better off paying it ASAP.  Even if the end result would be the same, the hassle of having the lender question it and have it delay you further can be avoided in that manner.  

Now, if you pay it off and they report as a paid collection, it may harm your score but the lenders will see it's paid.  If you tried to get a mortgage and had it already showing on your credit, the lender would want you to pay it off before they would approve you in most cases.  So unless your score is really borderline acceptable, I imagine you would be better off paying it before they report.

You mentioned that Transworld bought it from another collector?  How do you know?  What exactly does this letter say about this?  If they do not actually own it and are only collecting on behalf of another collector or creditor, then once you pay it off they no longer would have permissible purpose to report it.  The moment there's no balance, their legal right to report goes away.  If they do own it, however, that is different.  Doesnt mean they will report it, but I would definitely clarify this point and offer to pay it in exchange for them not reporting it.  The worst they could say is no.

[Brokenarrow70]

Thank you all for the information and help. The debt is taking care of now they faxed me a notice that they will not be submitting it into the credit bureaus. 👍😃

[IamWesty12]

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@Brokenarrow70 wrote:

Thank you all for the information and help. The debt is taking care of now they faxed me a notice that they will not be submitting it into the credit bureaus. 👍😃

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@Brokenarrow70 yayyy, dodged the bullet there.  

[caraxoxo]

In my experience multiple times... I have paid right when I got the notice.. even settled for a lesser amount and they did not place a paid collection account on my credit report. Most recently (May 2023) they even deleted the whole original trade line from my report. But you won't get a straight answer because they can still put it on your credit if they are petty. In my experience Most CA's just want the money and to be done with you.