The collection agency told me that I could not pay both, yet the company I owe money to said that if I could submit a certain amount, he would cancel the collection agency's pursuit of collecting the debt.
So, is it against the law to make a payment to him after I have made an agreement with the agency? And can the company actually cancel the request to collect the debt?
2006-12-27 14:50:40 · 6 answers · asked by Angie 3 in Business & Finance ➔ Credit
If you pay one you do not have to pay the other. The collection agency only gets paid if you pay them. I would pay the company so the collection agency does not get a thing.
2006-12-27 14:55:27 · answer #1 · answered by bcdestroya 2 · 1⤊ 0⤋
Generally no. Not knowing where you are located, there could be a local law that says otherwise. But my company uses agencies and we often collect a debt and cancel the claim with the agency.
Collection agencies are usually contracted and paid based on a percentage of the money they collect -- so they do not want you to pay someone else. They want the credit for collection.
You can pay the original company the debt you owe them and they will cancel the collection agency.
2006-12-27 14:57:14 · answer #2 · answered by James 2 · 2⤊ 0⤋
of course the collection agency will tell you that, they want the monies that you are paying, you see they receive a high percentage of the amount that is collected, and the original lender takes a huge loss.
Most states allow you to pay the original lender. However if you enter into a contract with the collection agency, they may have some legal recourse, in some instances the collection agency actually buys the debt for a small fraction of the amount of the debt and then becomes the owner of the debt, in doing so the original lender would have to forward all the monies collected to the collection agency.
2006-12-27 22:23:10 · answer #3 · answered by mhp_wizo_93_418 7 · 0⤊ 0⤋
you can only pay one company. The company you owe the money to hires a collection agency only when they give up trying to get money out of you. If your going to start paying then the company needs to tell the collection agency to stop calling you because they are going to take your payments. It's better for the company you owe the money to because if they use the collection agency then they have to pay the collection agency a certain percentage of every payment you make.
2006-12-30 15:59:03 · answer #4 · answered by luciousgreeneyedlady 5 · 0⤊ 0⤋
Tell the collection agency to go fly a kite let the original debtor know about the payment you made to the collection agency and make sure you get credit for it. Yes the original debtor can get rid of the collection agency - they after all hired them.
2006-12-27 14:56:00 · answer #5 · answered by Jazz 4 · 1⤊ 0⤋
you can pay one ,but definately not the other
2006-12-27 18:22:22 · answer #6 · answered by notyavgkat2002 2 · 0⤊ 0⤋