Settle with CA or OC???

[Anonymous]

Hello,

I have a couple old credit cards that have been assigned to collection agencies. The CA are NOT reporting on my credit files, so it is my understanding that means the OC still owns the accounts. (one is FPB and the other Merrick Bank).

My question is, should I take the settlement with the CA or try to settle with the OC? The CA has offered settlements in both cases, but what happens if I settle with the CA instead of the OC? Does the OC still update my balance? And since they still owned the account when I settled, then it wouldn't just belong to the CA at that point, right?

I am trying to keep another CA off my credit report, which is why I am trying to figure out my best bet to get these accounts settled and done with. 

[Zolomon]

If the CA are no longer reporting, but the OC are, then:

1. Check the DOFD with the OC
2. If you’re still within SOL, request to PFD with the OC.
3. If you’re out of the SOL, dispute with the bureaus to remove them.

Don’t ever pay a CA unless it’s PFD - or - ...

**There is a small window when your OC charges off your debt to a CA, where you’d want to pay the CA before the collection ever shows up on the report. However, before you pay, you need to have in writing that the CA will not report if paid. Even before all that, in that small window, you can still request the OC to let you pay the debt and take back the charge off.

[RobertEG]

The fact that the debt collector has not reported their collection does not necessarily mean the OC still owns the debt.

It simply means that either they have chosen to delay reporting, or that they do not have a reporting agreement with the CRA, and thus cannot report.

If the OC still owns the debt and has assigned collection assistance to a debt collector, the debt collector can still report their collection to the CRA.  In that event, the OC reporting will still show the debt as the current balance, and the debt collector, if/when they report, will show the same, or near the same, balance under their collection, representing the amount they are authorized to attempt to collect.

The difference is that when an OC has sold the debt, they must promptly update the debt balance reported on their account to $0.

To avoid reporting of a collection, you can make the debt collector a "pay for not reporting offer, " which, if accepted, will preclude their reporting of the collection.  Paying the OC will not legally preclude the debt collector from still reporting their collection once paid.

[Anonymous]

Thank you.

If I pay the OC, that doesn't change my date of first deliquency right? These are due to fall off in 2019 and I don't want that to change. And would I send a letter, or just call or email customer service?

[RobertEG]

Who you pay, or even if the debt remains unpaid, the credit report exclusion dates that apply to reporting of either the OC or a debt collector are not affected. 

Monthly delinquencies reported by the creditor that are in the same chain must become excluded no later than 7 years from the initial date of delinquency of the chain, and any charge-off or collection must become excluded no later than 7 years plus 180 days from the DOFD, regardless of payment status.