Debt Collection (Legal) Question

[McLovin]

I am attempting to clear up 2 collections on my credit report. Both debts are very small and I have no problem paying them in full.

My question is, I was able to get ahold of the first collection agency and I attempted to discuss with the gentleman on the phone about removing the collection from my credit report if I paid the debt. His reponse was that he couldn't guarantee anything and that they legally couldn't remove it. I already gave them my CC info to pay the debt and scheduled a payment for next pay day.

Everything I've read online states that there is nothing preventing the agency from removing the collection and state there is nothing legally preventing from doing so. I guess I was wondering if their is a legal statute I could present and say "Here is proof that you can remove it".

Am I SOL with the first agency with regards to my leverage and getting the collection removed since I already agreed to pay with no more than the person I spoke to saying he gave me his word he would attempt to remove the collection?

Did I approach the first agency the right way or would you guys suggest I approach the 2nd agency differently? If so, what would you all suggest?

 

[ichy]

My question is, I was able to get ahold of the first collection agency and I attempted to discuss with the gentleman on the phone about removing the collection from my credit report if I paid the debt. His reponse was that he couldn't guarantee anything and that they legally couldn't remove it. I already gave them my CC info to pay the debt and scheduled a payment for next pay day.

So much fail. Now that you paid it you have no leverage. You should've gotten a written guarantee that they'd remove it before you paid a cent.

Check out creditboards.com for advice on this stuff.

 

[dud]

I am attempting to clear up 2 collections on my credit report. Both debts are very small and I have no problem paying them in full.

My question is, I was able to get ahold of the first collection agency and I attempted to discuss with the gentleman on the phone about removing the collection from my credit report if I paid the debt. His reponse was that he couldn't guarantee anything and that they legally couldn't remove it. I already gave them my CC info to pay the debt and scheduled a payment for next pay day.

Everything I've read online states that there is nothing preventing the agency from removing the collection and state there is nothing legally preventing from doing so. I guess I was wondering if their is a legal statute I could present and say "Here is proof that you can remove it".

Am I SOL with the first agency with regards to my leverage and getting the collection removed since I already agreed to pay with no more than the person I spoke to saying he gave me his word he would attempt to remove the collection?

Did I approach the first agency the right way or would you guys suggest I approach the 2nd agency differently? If so, what would you all suggest?

OP, DO NOT PAY unless they can guarantee that your CR will show that you paid this debt. You may not be able to wipe the "sins of the past" from your CR but don't pay unless you get assurances.

GL ...

 

[Homerboy]

The agency does no reporting to the credit bureaus. THe original creditor is the one that will report the debt SIFed or PIFed with the bureaus.

 

[McLovin]

OP, DO NOT PAY unless they can guarantee that your CR will show that you paid this debt. You may not be able to wipe the "sins of the past" from your CR but don't pay unless you get assurances.

GL ...

So ok I know I screwed the pooch witht he first agency. Do I have any recourse before the payment is made? Should I call back and say don't charge my card?

I have not paid YET. I just gave them my CC info to make a payment on Feb 1.

 

[highland145]

They should show it as paid. If not dispute, you have proof.

Very unlikely that it will disappear. But......after you've confirmed it's paid, dispute it. Likely the creditor will not respond because you paid and it goes away.

I have not paid YET. I just gave them my CC info to make a payment on Feb 1.

A payment? How many payments?

 

[Homerboy]

So ok I know I screwed the pooch witht he first agency. Do I have any recourse before the payment is made? Should I call back and say don't charge my card?

I have not paid YET. I just gave them my CC info to make a payment on Feb 1.

You haven't screwed anything. If this is a 3rd party collection agency, they do not report to the bureaus. The original creditor is the one who will do the reporting once it is reported to them by the 3rd party agency that he account is paid/settled in full.

 

[lupi]

Always deal with the originator. If you gave them a CC, I'd call them back and tell them not to charge and be ready to start calling your CC company when they charge anyway to dispute it.

 

[Homerboy]

Always deal with the originator. If you gave them a CC, I'd call them back and tell them not to charge and be ready to start calling your CC company when they charge anyway to dispute it.

If the debt was sold, he can not deal with the original creditor.

 

[McLovin]

The first debt is like $380 and the 2nd is $150. Both debts have been sold to collection agencies and I was referred by both OC's to the CA's.

The first Debt I agreed to make a full, single payment on Feb. 1st. So should I just call back and say not to charge my card until I get something from you that says the collection will be removed? Or should I just stick with paying it and then next month file a dispute?

 

[Homerboy]

The first debt is like $380 and the 2nd is $150. Both debts have been sold to collection agencies and I was referred by both OC's to the CA's.

The first Debt I agreed to make a full, single payment on Feb. 1st. So should I just call back and say not to charge my card until I get something from you that says the collection will be removed? Or should I just stick with paying it and then next month file a dispute?

If they sold it, you can not deal with the OC anymore.

 

[McLovin]

If they sold it, you can not deal with the OC anymore.

I got that, I'm was just stating I started with the OC's because my credit report didn't state anytrhing about who owned the debt so I could pay for it.

 

[TwiceOver]

It shouldn't be removed, only marked as paid in full. Future lenders need to know that you were a deadbeat at one time. Removing it would make credit histories useless.

 

[highland145]

Pay it 2/1.

 

[Homerboy]

It shouldn't be removed, only marked as paid in full. Future lenders need to know that you were a deadbeat at one time. Removing it would make credit histories useless.

DING!

 

[IceBergSLiM]

I had no luck cleaning up my negatives on my own. I've finally hired a company to work for me and do it the right way. I should have initial results in 50 days if your interested in hearing how its worked out.

 

[IceBergSLiM]

It shouldn't be removed, only marked as paid in full. Future lenders need to know that you were a deadbeat at one time. Removing it would make credit histories useless.

Thats BS many OC's don't follow the rules of engagement and should be held accountable.

 

[McLovin]

DING!

Do future lenders not look down on it so much if it shows as paid? If it doesn't matter, not sure why someone would be inclined to pay for the debt after the fact. I am not saying I won't pay for it, the situation just sucks if doesn't make a difference.

I had no luck cleaning up my negatives on my own. I've finally hired a company to work for me and do it the right way. I should have initial results in 50 days if your interested in hearing how its worked out.

Absolutely!

 

[TwiceOver]

The "cleanup" that is being discussed probably has to do with disputing the negative record over and over again until one side gives up. That is BS. If you screwed up, you screwed up. Now if it is truly a false negative then it should be disputed until removed.

 

[McLovin]

Ok but I am freely admitting the mistake and actually owning up to it by paying it off. Not to mention how much extra I've had to pay in higher interest rates because of it.

Are you saying it's BS that I paid the debt in full and I should still be held to higher interest rates?

I guess you could take this into a broader discussion about letter of the law vs spirit of the law. Not that this discussion really needs to be discussed in that fashion, but at what point do you stop beating a dead horse? I've essentially did my time and re-paid the debt. The self satisfaction in that regard is nice, but I guess my original question still stands. If I'm screwed wether I tell OC's to piss off you're not getting anything and have to wait 7 years for it to roll off or actually pay the debt off yet still be held to the same 7 year standard, why should I bother?

 

[nixium]

Can the sanctimonious fucks get out of this thread? It's quite obvious that the credit system Punishes you disproportionately for small errors, not to mention corrupt collectors who don't follow the rules.

Sickening how ppl support the powerful in this country.

 

[IceBergSLiM]

The "cleanup" that is being discussed probably has to do with disputing the negative record over and over again until one side gives up. That is BS. If you screwed up, you screwed up. Now if it is truly a false negative then it should be disputed until removed.

It is not a black and white game. Having late on your credit report isn't as simple as answering yes or no to "did you pay the bill late? " ...the creditor has obligations to follow the law all through the debt collection and credit reporting process which they frequently fail to follow. Why should the fact that I may have been technically late for a payment be held in lower regard than their failure to meet their legal pre-requisites?

 

[DAGTA]

Dave Ramsey has good information on his site about handling situations like these. He also provides forms you can use to do formal mail to the company. Send a formal letter stating that you want a formal response that your payment fulfills the debt. Have everything sent with receipt / signature required.

 

[blackangst1]

Im not going to address the many fallacies in this thread, but I will make a few statements.

To answer your question, there is no law that says a CA must report or that they must remove a collection once paid.

As far as your FICO score goes, a paid collection or unpaid has the SAME effect on your score. Paying an old debt is good morally, but it does nothing for your FICO score. In fact, it could hurt you IF the collection agency re-ages the debt.

Someone mentioned creditboards.com. That is the best resource on the net for learning, understanding, and interpreting the law.