If I pay off an account that is in collections to the originator will it take it out of collections?

Question

Is it better to pay to the actual company or collection agency. Will doing so remove it from collections on my credit report or will it matter?

Answer 1

Do some research on the internet for "Pay for deletion" (PFD) letters. How this works is you send a PFD letter to the collection agency with an offer for you to pay a certain percentage. It may be 100%, up to you. In return you request that they remove the tradeline from all the credit bureaus it reports the negative account to (you'll see the concept better when you find a PFD sample letter. also don't sign the letter when you mail it to them. Dont want your signature jumping off your letter to another one of theirs, but leave a spot for their representative to sign and mail back to you. thats a short version. do the research and you should be fine. They'll accept the deal because they want some money. Be strong with them and make sure this is done in writing and not over the phone. They have no reason to have the negative tradeline on your credit report if they want any money from you. A paid collection/charge off is just as bad as an unpaid one so only do a pay for deletion in writing.

Answer 2

Once a debt has been turned over to a collections agency you can longer pay the original creditor. You must pay the collection agency. Once paid, the debt should be removed from your credit report within 30 days.......check back in 30 - 60 days to see if that was done!

Answer 3

First, if you want to clear up your credit you have to pay. I would try to pay less than the full amount. Depending on the amount and if you have the money in whole to pay or not I would call and negotiate with the collection agency...if I had close to the amount to pay it off. Ask what the will take or offer them 2/3 of what is owed. Tell them you have other bills and they all want the money and if they will take that amount today that you will pay them, if not you will pay the other creditor to get it off your record. They may act like they don't want it but, they will most likely take it. I did this for my daughter in front of her as her so she would know how to talk to them. they get a commission and they want something not nothing. So, be firm and be willing to get the money to them ASAP, if they take the offer. No matter what you pay you need 7 yrs. for it to get off your report and it won't matter than that you paid less than the amount. Really a lot of it is interest and they really aren't loosing that much. Be tough. Good luck and try to keep everything paid, don't borrow unless it's a car or a home. If you can't afford to pay cash, you can't afford to charge it. It costs more that way, right?

Answer 4

I doesn't matter if you pay the original creditor or the collection agency...just pay it in full.

Paying off the debt will not remove it from your credit report but it will update the status from "charge off" to "paid charge off". In the future when someone looks at your credit report a paid charge off will look better than an unpaid charge off so yes, it matters.

Answer 5

To answer your actual question you have to get the collector to agree to remove it prior to paying it isn't automatic, however it will show as payed with comments like (less than original debt or per collections etc.) not just payed, which is better than showing a charge-off or write off though because shows you just blew it off! Hope this helped.

Answer 6

personally if i were you, i'd pay the collection agency. the original company will only get 50% of what you owed.

Answer 7

you have to pay the collections company. and they also get
a percentage of what they collect from you.