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Couple of accounts that are in Charge offs

Date: Fri, 01/20/2006 - 18:54

Submitted by Jessi
on Fri, 01/20/2006 - 18:54

Posts: 3361 Credits: [Donate]

Total Replies: 10


I have a couple of accounts that are charged off, according to my credit report. Can I pay the amount owed in full to the original creditor? Or do I have to pay it to the collection agency, and wait for the charge off to disappear?

And if I CAN pay the original creditor (which I would prefer to do, if possible) Will the collection agency "go away" from my credit report?


Hi, if collection agencys are on your credit report then you will have to deal with them and pay your debts off to them. Then afterwards, once accounts are paid, they will need to go to the credit bureaus and report 'paid charge off'. It will still remain as a charge off on your report. That won't go away until the seven year time frame is up. But if you pay it, it will show up as a 'paid charge off'. which isn't great, but its better than just a charge off. It shows that you paid it.

I've heard it said that its better to deal with original creditor and its better to pay directly to them if you can. But I got stung big time doing that. I was making payments to original creditor--after charge off--then collection agency came in 'after fact' and wanted me to stop paying original creditor. I wrote them back and told them that I had made arrangements with OC and was making payments to them. I got one more letter after that, once again wanting me to pay them instead of OC. I wrote back and said I was paying OC. Next thing, sheriff is at front door with court papers, they sued me and got away with it. The whole time original creditor was cashing my checks!!

so see, its my experience that if collection agencies are already contacting you and are on your credit report, you need to deal with them.
You might be able to write original creditor and express that you'd rather deal with them. I really don't know if that will get you anywhere or not.

hope I've helped somehow here. This is what I went through. not fun and some of these people aren't playing, they mean business. shirley


lrhall41

Submitted by imkimssister on Fri, 01/20/2006 - 20:48

( Posts: 1301 | Credits: )


Thank you so much! I will just be glad when this is all over with!

I think it's lousy that they came after you like that when you were making payments. Seems to me that they would need to go after the original creditor for the money, since the collections agency basically "bought" the debt...


lrhall41

Submitted by Jessi on Sat, 01/21/2006 - 03:45

( Posts: 3361 | Credits: )


This is what I wrote in another thread in response to your query.

Quote:

Hi Jessi! The negative is reported for 7 years from the original date of delinquency as reported by the creditor. Even if you decide to complete your payments, the negative remark will still be calculated from the first date of delinquency only.

Sometimes, it becomes tough to understand the CR if there is a lack of proper knowledge. But, if you are clear with the laws laid down in the FCRA, understanding the CR will be quite simple.


lrhall41

Submitted by david on Sat, 01/21/2006 - 10:48

( Posts: 1229 | Credits: )


Quote:

I think it's lousy that they came after you like that when you were making payments. Seems to me that they would need to go after the original creditor for the money, since the collections agency basically "bought" the debt...


No, in this case the collection agency didn't buy the account. It was a samsclub account that I charged off on, I started making payments to them on my own without a collection agency even contacting me, then several months later, their lawyers are coming after me. They hired lawyers to collect the debt that I was already paying. totally threw me a curve ball because I thought everything was cool.

so, just so you know, when you are approached by collection agencies, it doesn't neccessarily mean that the debt was sold to them. Most of the time anymore, the original creditor hires someone on the outside to collect the debt. It still belongs to OC, collection agency is just collecting for them. Hope I have helped. shirley


lrhall41

Submitted by imkimssister on Sat, 01/21/2006 - 11:05

( Posts: 1301 | Credits: )


Hey, if you can answer that question then you'll own the goose that lays the golden egg. LOL
I went back and forth with some of my accounts trying to find out. I would write original creditor and not get an answer and of course after writing CA and asking for validation, I never got an answer from them either. It wasn't until recently when I got copies of my credit report, that I found who actually owns the accounts. If its a 'charge off' but shows that you have a '0' balance, then they've sold it. These are the only two ways of finding out that I know of, write/call and ask, or check your credit report. Just my experience here. If anyone else can add to this, please jump in. shirley


lrhall41

Submitted by imkimssister on Sat, 01/21/2006 - 12:36

( Posts: 1301 | Credits: )


Shirley took the responsibility of finding out the actual status of her account. Perhaps, that is the only way to do the hard work and getting the facts straight.

Only three companies can know about your accounts - your creditor, CA and the CRA. You will have to verify with each of them and know the latest status of your account. fdcpa laws will help you in finding the facts.


lrhall41

Submitted by john on Sat, 01/21/2006 - 13:08

( Posts: 1231 | Credits: )


No problem... If your original company has not sold the debt to some collection agency, they can accept payments from you. They might have hired some agency to collect the debt for you.

But, in case, your account has been purchased by some third party, then your creditors won't collect anything from you. They actually should not do so. Since your account is with the CA, you have to make payment arrangement with them only.


lrhall41

Submitted by john on Sat, 01/21/2006 - 15:10

( Posts: 1231 | Credits: )