amount owed to lender different from collection?

Question

I have a real simple question. I have an original lender that states my balance is less than what the collection agency has.They state to send them the payment, and they will get a paid in full letter from the collection agency. Will it be that easy? or should i pay the collection agency.

Answer 1

I agree with stopccdebt, if the original creditor (OC) will work with you, deal with them.

If the collection agency is reporting on your reports, you should request, with the OC, that the collection agency "removes" that report after you pay the OC. You should also request the same thing with the OC. A "paid" negative is still a negative.

Just for everyones info: as far as the collection agency placing interest or fees on an account, they are ONLY allowed to do that IF it is written in the original contract with the original creditor AND if a persons state statutes "allow's" a collection agency to add interest and/or fees.

Answer 2

First of all: Collection agencies will add on fees so a higher balance with them is normal.

Second: If you can afford to pay the whole balance at once it is best to pay the collection agencies. Usually you can negotiate with them. Start with asking them if you pay half of what is owed right now will they consider it paid in full. They will prob tell you then what is the least that they can accept. If you are paying the bill all at once DO NOT pay the whole amount most collection companies will take a settlement. If they settle for a lesser amount get a letter from them before you pay it saying they will accept such and such amount and consider coll paid. Then pay the amount settled on a make sure they send you a paid in full letter. Legally they have to but most dont so keep on them..then give the originally creditor a copy of this letter.
If you can only make payments, I would do what the original creditor said or if the original creditor will settle go with them but follow the same principle and get letters before making the payment and letters afterwards.
Third: most coll companies wont report to the 3 major credit reporting bureaus that the coll was paid so call the following numbers and open a dispute for the collections. That will assure that it wont continue to show a balance.

Experian: 800-831-5614
Equifax: 800-685-1111
Transunion: 800-916-8800

Email at [e-mail] if you have more questions.

Answer 3

Keep in mind that the collection agencies sometimes will add their "fees" when trying to collect a debt so don't be too surprised if the collection agency's amount is more than what you own. Also, keep in mind that once the company hires a collection agency, it usually means that you now owe the collection agency and don't need to bother with whom the original lender was. Make sure they clear up your credit report if you make the full payment!!

Answer 4

The collection agency can add on fees and other charges. Also the lender can settle for a percentage of the dollar amount(ie. 50 cents on the dollar). That may be why there is a price difference. Ask the lender if you can make the payment to them and then ask for the paid in full letter from them.

Answer 5

Once a debt has been turned over to collections, it is better to go through the collection agency. The difference is probably not much and includes collection fees. If you pay the lender, the collection agency may not be notified and it will still show as uncollected on your credit. Contact the collector with any questions about the difference in amounts.

Answer 6

It depends on who the original lender is and what the bill was for. Many times bad debt is bought by debt collection agencies and they get all proceeds. If it was sent to a law firm, they usually get a percentage, and you can probably settle with the original lender.

Answer 7

NEVER EVER pay a collection agency...if you are sure you a working with the original lender and they still own the loan then pay them.

Answer 8

The collection agency has increased your debt to cover their fees for expenses.
YOur original debtor will consider your account paid if you pay them in full, however, you may still have to pay the collection agency for their fees.

Answer 9

you could "think of" something you want yet that would not make it genuine. i can think of I even have fluffy purple fur and wings, yet as quickly as I step out of the third floor window and consider out to fly, i'm going to be certain i won't be able to in a 2nd. God owes us no longer something. He has given us each little thing we've and are: existence, a physique, a planet to outlive...and, btw, the opportunity of understanding Him in my opinion by using Jesus Christ. We do our ultimate because of the fact we choose to, no longer for any eventual "reward." while you're doing stuff for applause, reward, or recognition, that's no longer altruistic. that's horse-paying for and merchandising.

Answer 10

Anytime the original creditor is willing to work with you, it is much better to go that route. The terms are better, you have a lower payoff, and you can more easilty restore your dinged credit.