CA refuses to pay for delete... any advice?

[Anonymous]

I have 1 collections account on my credit report, it was just added about a month ago and the original missed payment that caused this is from about a year ago.  It was a stupid thing that I just didn't pay it and it's only for $100.  Now my credit score got hit almost 100 points.

I called the CA and asked if they would request having the account removed from the credit bureaus if I pay in full.  She said she will not do that.

So question is, what's the next step?  Do I just pay it knowing it will not come off my report for the next 6 years?  I've read other posts where people claim a paid account does not increase your score much.  Should I just wait a while and try again and see if they'd be willing to do it later?  Maybe if they think I won't pay?

[Anonymous]

Start at the beginning.

DV the CA and wait for the response.  Based upon the response, post back here and more info can be provided. 

Remember, a DV is not a dispute, it is a request for "validation" of not only the debt, but of the debt collectors right/ability to collect it (which includes the right to report it).

If the CA failst to respond appropriately or has not met legal requirement of DV, state licensing or bonding, or other requirments, you may then find yourself in a better position of leverage to negotiate the PFD.

Have you contacted the OC?  Does the CA own the debt, or did the OC merely "assign" it.  If the OC still owns, then you can negotiate the PFD with the OC, which would include terms to "recall" from CA.  If you can pay to and deal with the OC, it is almost always better.

Who is the OC?  You said "late."  A CA is generally employed once a late goes to default and charge off.  What is the status of the OC and OC account?  Did this get charged off?  Does OC report, and if so what?  What is the DOFD and DOLA?

[Anonymous]

If you affirmed the debt in your conversation with the CA, you can't develop leverage through the debt validation process.  Here, you are saying that you know the debt is yours and you just didn't pay it.  If you said that on the phone, then they can validate the debt by stating that you already admitted you owed the money.

Sometimes, it's a lot easier to just pay the $100.  If you only have one negative TL, you score will recover quickly.

[nothingman02]

Hi nick! Welcome to the forums.

Please read the sticky threads first. Especially information about DVing, PFDing,abbreviations, state resources etc.

Then pull your CBRs from annualcreditreport.com so you get the complete data.

Study them closely. Is everything accurate and consistent? Dates, Balances etc?

Whos the OC? Reporting?

Whos the CA? Collecting for themselves or the OC?

What kind of a/c is this? CC, utility, installment....?

Have you received any written communication from the CA?

Please dont speak to the CA again on phone until you figure out whats going on and what options are available to you. A PIF would not change your score as a paid CA a/c would behave very much like an unpaid one.You would want a PFD in writing and if its only $100.00, its very much possible. You would have to use some additional leverage. Its true that you would lose some leverage if you have agreed to the debt on the phone but you can still DV the CA.

[RobertEG]

Asking a CA to accept a PFD is asking them to take action that is contrary to their credit reporting obligations under the Credit Reporting Resources Guide that they are administratively bound to follow.  That Guide includes clear instructions that payment is not grounds for deletion.

So they are correct in denying any PFD. 

But they can legally accept a PFD, and will do this if their gain means more to them than adhering to admin procedures.  Translated......, money in their pocket.

Your leverage is increased primarily by two things.  ONe, if the debt is low (and yours is), they are much more likely to just accept a PFD than continue to put time and money into arguing with you.  And two, once the SOL expires, they lose legal collection ability, so that softens them up.  As has been recommended, know your state SOL law.  And definately dont talk to them until you know your state SOL law, because in some states, a simple offer to pay (which is what a PFD offer basicall  is) may reset your SOL.

[Anonymous]

Wow, thanks for all the quick responses.  There were a lot of questions there, so I will try to answer as many as I can... Please bear with me too, this is my first real credit problem so I'm trying to read through the posts and understand what everything means.

The OC is a doctor's office, but it was a "missed appointment" charge, so I'm not sure if that qualifies as a medical charge like some of the other posts describe.  I will call them tomorrow and see if they still own it, if so, I really hope they will just accept the payment like you said and recall it from the CA.  The CA website claims, "Collections: WAA works strictly on a contingency basis with very competitive rates."  So that seems to me that they don't buy the debts and they are still working for the OC correct?  Does that make my chances better?

I have not sent a DV yet, but depending on how the call to the OC goes tomorrow, maybe I'll try that too.

From my credit report from this site, Date Assigned: April 01, 2009, Date Reported: May 01, 2009, Date Last Active: Feb 01, 2009.  Pretty much everything else is listed as "Not Reported".

[llecs]

OP, skip the DV and use the HIPAA process.