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Who To Pay : Original Creditor vs The Collection Agency

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Established Member

Who To Pay : Original Creditor vs The Collection Agency

Hello - 

Not sure how to handle this issue. OC (a doctors office) was billing me for a visit which they told me would be handled by my insurance. Insurance denied the claim, lots of back and forth, I refused to pay and two years later they finally reported me to a collections agency. 

 

Spent the last few days arguing my case but to no avail. The OC offered me the option to accept payment in full and they would contact the CA to have them change the status to "Paid, closed w/ $0 balance". From my understanding the item would still show up on my credit report as a delinquent account. They will NOT request that the CA delete my account. 

 

I have the ability to make payment in full. 

 

Two questions :

1) Is "paid, closed with $0 balance" any better than having a $500 tradeline in terms of credit score?

2) Would I stand a better chance of contacting the CA and requesting a PFD (payment in full), rather than paying the OC 

 

From some research, it appears the CA (Escallate) does not typically offer PFD or at least they do not in writing. 

Really torn as to what I should do. 

Message 1 of 15
14 REPLIES 14
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Established Contributor

Re: Who To Pay : Original Creditor vs The Collection Agency

Always pay the Orignal Creditor before paying a Collection Agency. You can ask them to retract it. 

 

I have paid the Orignal Creditor on a few occasions and then sent a DV request and got it removed. Cause, they can't validate a debt that is no longer valid.

 

Current Scores (9/9) - Equifax 542 - TransUnion 560 - Experian 563

$500
Message 2 of 15
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Valued Member

Re: Who To Pay : Original Creditor vs The Collection Agency

I say talk to both and see who accepts your PFD. Just make sure get it in writing before you pay a dime! They will lie to you over the phone but if you have it in writing, no matter what you can have it removed. I've had success both ways, through the OC and CA. I've also had failure going directly through the OC so just make sure you get it in writing before you pay, I can't stress that enough. Because even if they don't report to the CRAs to delete the TL, you can dispute with the CRAs with your letter and they will have to remove.

The Time Is Now

10/07/14 TU FICO 704
8/13/14 CK TU Fako - 580, 8/12/14 QU EQ 566, Huntington Bank EQ 547, CS EX 630
Message 3 of 15
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Frequent Contributor

Re: Who To Pay : Original Creditor vs The Collection Agency


@timothylee wrote:

Always pay the Orignal Creditor before paying a Collection Agency. You can ask them to retract it. 

 

I have paid the Orignal Creditor on a few occasions and then sent a DV request and got it removed. Cause, they can't validate a debt that is no longer valid.

 


Can you give an example f which OC you have had success doing this with?  I have 3 baddies left that I'm considering doing this to, they haven't quite gone off to CA world yet.  

Starting: TU:515, EX:521, EQ:528
Current: TU:700 EX:706 EQ:674
FICO Goal: 725
Cap1 Venture $11,000AU, First Progress $500, Cap1 QS $1750, FH$600, Open Sky $300, Cap1 $500, BestBuy $1500 Target $1800
Message 4 of 15
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Frequent Contributor

Re: Who To Pay : Original Creditor vs The Collection Agency


@calvinishifi wrote:

I say talk to both and see who accepts your PFD. Just make sure get it in writing before you pay a dime! They will lie to you over the phone but if you have it in writing, no matter what you can have it removed. I've had success both ways, through the OC and CA. I've also had failure going directly through the OC so just make sure you get it in writing before you pay, I can't stress that enough. Because even if they don't report to the CRAs to delete the TL, you can dispute with the CRAs with your letter and they will have to remove.


Can you also elaborate on who this worked with and who wleched on their agreement.  I have three baddies that I'm considering doing this to.  Thanks!

Starting: TU:515, EX:521, EQ:528
Current: TU:700 EX:706 EQ:674
FICO Goal: 725
Cap1 Venture $11,000AU, First Progress $500, Cap1 QS $1750, FH$600, Open Sky $300, Cap1 $500, BestBuy $1500 Target $1800
Message 5 of 15
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Valued Member

Re: Who To Pay : Original Creditor vs The Collection Agency

I've been cleaning up both, me and my DG CRs over the past month. So far, I've gotten 6 account of removed in 1 month. 2 from hers, 4 from mines.She had a account from Bull City, 5 yrs old, they accepted PFD, she also had one from a CA of whom I can't recall that was 1yr old and I disputed with all the CRAs that it wasn't hers and they all deleted. I had a unpaid medical bill in collections with IMC Credit Services, I disputed with the CRAs stating it wasn't mine, it was due to fall of in Nov, they deleted early unpaid. I had a paid account and judgement from a apartment I rented 3 yrs ago, LB Gray being the CA. Disputed with the CA that it was a PFD, it wasn't, they removed both the collection and judgement. Lastly, I had a light bill from that apartment that I NEG a PFD over the phone with the OC after it we will to collections. They did the removed, I had no proof. I tried DV with CRAs , no avail. Then I disputed through BBB against the CA, saying they were going against my PFD with the OC. Success, took a few days, less than a week. The CA agreed to delete, it was Virtuoso Service Group.
The Time Is Now

10/07/14 TU FICO 704
8/13/14 CK TU Fako - 580, 8/12/14 QU EQ 566, Huntington Bank EQ 547, CS EX 630
Message 6 of 15
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Super Contributor

Re: Who To Pay : Original Creditor vs The Collection Agency

"1) Is "paid, closed with $0 balance" any better than having a $500 tradeline in terms of credit score?"
From what I've read on here, whether or not is paid does not have much effect on your score, BUT, mortgage lenders are usually willing to overlook a paid collection item, but not an unpaid collection item.

Most Recent FICO 8 Scores EX616/TU587/EQ607 01/09/2018 Starting scores 553/485/543 08/25//2017
~~~Credit lines~~~~
SDFCU VISA Secured $250
Discover Secured $200
Message 7 of 15
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Valued Member

Re: Who To Pay : Original Creditor vs The Collection Agency

If your collection changes status from open & unpaid to closed & paid, you will receive a small bump. I have the 3Bureau Monitoring with MyFico and 2 weeks ago, I received 5-10 point bump after my account with Virtuoso changed status before ultimately being deleted last week. That's minutes compared to hav to it removed completely as far as score bump, plus there's nothing for a creditor to see and question you on.
The Time Is Now

10/07/14 TU FICO 704
8/13/14 CK TU Fako - 580, 8/12/14 QU EQ 566, Huntington Bank EQ 547, CS EX 630
Message 8 of 15
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Contributor

Re: Who To Pay : Original Creditor vs The Collection Agency

calvinishifi wrote:

I've been cleaning up both, me and my DG CRs over the past month. So far, I've gotten 6 account of removed in 1 month. 2 from hers, 4 from mines.She had a account from Bull City, 5 yrs old, they accepted PFD, she also had one from a CA of whom I can't recall that was 1yr old and I disputed with all the CRAs that it wasn't hers and they all deleted. I had a unpaid medical bill in collections with IMC Credit Services, I disputed with the CRAs stating it wasn't mine, it was due to fall of in Nov, they deleted early unpaid. I had a paid account and judgement from a apartment I rented 3 yrs ago, LB Gray being the CA. Disputed with the CA that it was a PFD, it wasn't, they removed both the collection and judgement. Lastly, I had a light bill from that apartment that I NEG a PFD over the phone with the OC after it we will to collections. They did the removed, I had no proof. I tried DV with CRAs , no avail. Then I disputed through BBB against the CA, saying they were going against my PFD with the OC. Success, took a few days, less than a week. The CA agreed to delete, it was Virtuoso Service Group.


Did bull city put their willingness to delete in writing? How was this initiated, did you send letter or call on phone? Thanks!

Message 9 of 15
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New Member

Re: Who To Pay : Original Creditor vs The Collection Agency

Hello, I did the same thing with Bull City.  First I sent a pay for delete request in writing to Bull City Collection Agency via Certified Mail.   I received a letter back from them 9 days later stating to call them and they would be more than happy to discuss my options to accommodate my request.  I was a bit weary after reading many posts insisting that you should always get a "pay for delete" agreement in writing, but decided to give them a call anyway.  The woman I spoke to insisted that they have a policy that they will not send it in writing but will ultiimately pay for delete and that our conversation was being recorded and could always be referred to if they didn't live up to their word.  So, at this point I could either trust the rep or leave the account on my report for another 5 years until it fell off, so I went ahead and paid the 163.00 in full while I was on the phone.  She told me it would first show up as "Paid in full" on my report, then 14-30 days later it would completely delete off with all three bureau's.  So I waited...and that's exactly what happened!  I watched my fico score's closely for the next two weeks and gradually saw it update as paid in full with all three bureau's!  I gave it 32 days from paying to run a new 3 score report through MyFico.com and when I did, the account was no longer listed under any report, as if it was never there in the first place!  So If you have an account with Bull City Financial Corporation, they will live up to their word!  Or they did in my case anyway.  Good Luck! 

Message 10 of 15
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