How do I know they are applying payments?
Date: Thu, 10/04/2007 - 22:55
Now, I'm in a position to start paying off the debts and I dont want to "settle". I've read a lot about how it won't be an advantage to pay it all if it's already been charged off, etc. However, I feel it's my moral obligation to pay what I owe even if collection agencies are making a huge profit on it. Also, I dont want agencies bothering me trying to collect years later for unpaid balances even if the statute has passed. It's only been about two years anyway.
I've dealt with a couple of collection agencies and asked point blank if they OWN the debt or have just been hired to collect. After never being told a straight answer, I looked at my credit reports and from what I can tell, only one creditor has actually sold the account, even though they show them charged off.
I wrote all the collectors and told them to stop calling me, etc.
Sorry for the long explanation. But now, when I'm willing to pay, these agencies insist on making me pay by "electronic check", and I'm not going to! I know they get a commission if they can get me to agree to suck money out of my account. One company actually hung up on me when I said I was going to send them a check!
So, I wrote up an agreement letter, telling them I would make three payments and when. I sent it certified, and did pay off the debt. On my last payment I stated in the letter that it was to fulfill my debt in completion. They have not sent anything back to me, but they did cash the checks. Now, I'm going through the same thing with another agency and I sent them one payment so far.
How do I know they are applying the payments to my debt? I'm afraid they are just going to take the money. I have nothing to prove this yet, but how do I protect myself to show that I've paid off the debt? How long do they have to report to the credit companies that it was paid? I kept copies of everything I sent, but I'm really not feeling secure about it. What protection do I have that they wont add on other charges or say I didnt pay? I'm in Calif. if that makes any difference.
I have other debts to pay and I fear I will run into the same thing. They ARE cashing the checks even if they didnt formally agree to payments, so they have to apply the money, right? :(
One other thing. I have several accounts that are through World Financial Network. Though they charged off the debts, I havent received any outside collection notices and I dont see any assignments on my report. I have written to them to ask if the debts have been sold so I know whom to pay, but no response. Should I just send them the money and pray they apply it to the account?
Sorry for my long post. I have searched for these answers elsewhere and only find things about "how to not pay" debts. :roll:
Have you checked your credit reports after paying off the debt y
Have you checked your credit reports after paying off the debt you mentioned above? If it is not showing as paid or settled, then dispute it with the credit bureaus to see what the collection agency does. If they respond to the dispute by saying that the debt is not paid, then you're going to have to provide the copies of what you sent to show that you did pay.
If they don't respond, the item will be removed from your credit reports, and you will have to copies of what you have sent to rely on should any issues with this account come up in the future, which hopefully won't happen.
Some of these collection agencies just make things extremely difficult for consumers, whether they pay or not. My DH paid off a medical bill in full, yet the collection agency refused to send a "paid in full" letter and reported inaccurate info to the credit bureaus. When I contacted them about the inaccuracies, they refused to do anything about it and simply told me to have him dispute is with the bureaus. This is just an example of what seems to be a widespread attitude amongst a lot of collectors and collection agencies.
