Question about collections.?

Question

If my bill has gone to a collection agency, but I want to just keep paying directly to the company that is owed, will the payments I make be applied to my outstanding balance? I don't feel comfortable paying some credit company I've never heard of.

If my bill has gone to a collection agency, but I want to just keep paying directly to the company that is owed, will the payments I make be applied to my outstanding balance? I don't feel comfortable paying some credit company I've never heard of. I also want to add that I am well aware I should have delt with it beforehand, so I don't need any of that kind of advice. Thanks!

Answer 1

"You may be able to deal with the original company if you are going to pay the debt in full, keep in mind that the collection agency makes most of their money by charging fees in addition to the debt incurred. "

I don't know where this particular person worked but this is not true for collection companies.

Here is the skinny on fees charged. Yes the Collection agency will get paid and they do. However they will get paid from the original credit grantor... ie your credit card company..

Now to dispell another MYTH. When your cards / debts go delinquent they are not automatically "sold" what happens is they bounce around from 3rd party agencies for a few years until they are sold....

With that said here is what you do. "If" your debt has just gone delinquent and into collections for the 1st time then you are in luck (kinda). this means that you do not have to deal directly with the collection agency if you do not want to. However you will have to deal with their phone calls. Easily enough dealt with, option 1 don't answer their calls, option 2 Hang up on them. Don't worry about offending them they are bill collectors it happens to them an average of 50 times a day.
You can just keep sending your payments directly to the credit grantor and they by law have to except them. This will get applied to the outstanding balance and your bill will be getting paid.

Here is the problem. You will not get statements from your credit grantor, however you will get them from the collection agency. another problem is it is in collections so it is already a mark on your credit (this can be fixed by paying it off, either now with a lump sum payment or later by sending payments in). Another problem is that the credit grantor will not talk to you they CAN"T by law. So you will have to speak with the collection agency if you have issues with the bill.

Warning about payments, since you are sending them to the credit grantor your payments will be delayed as much as 45 days before they get applied to the balance. Just an FYI.

Good luck

Answer 2

Hello, the debt is now with the collection agency and no longer with the company you directly used to deal with before; at this point all payments need to go to the credit agency.

You may be able to deal with the original company if you are going to pay the debt in full, keep in mind that the collection agency makes most of their money by charging fees in addition to the debt incurred.

A payment plan might only be discussed with the collection agency but the original company may not want to hear that because most companies under law have to allow numerous opportunities to pay a debt before handing the customer over to a collection agency. Keep in mind that a bad credit rating can prevent you from making certain purchases or from obtaining real estate.

Hope this helps
Good luck in whatever you decide to do

Answer 3

I don't believe you have a choice. More likely than not, the company that is owed "sold" your debt to the collection agency. The collection agency paid the company you owed money (less than what you originally owed), and is hoping they can collect the full debt from you. The difference between what they paid the original company and what you pay back to the collection agency is how the collection agency makes money.

It's best to take care of these kind of situations before they go into collection.

Good luck.

Answer 4

If they transferred it to a collection agency, you don't have a choice. You should have worked out something before they transferred the debt.... You should have received more than one notice that this was going to happen..... If you do not believe it is a legitimate collection agency, you need to discuss it with the company where you opened the debt.