Can I pay the original creditor instead of the collection agency?

Question

Is there a way to pay my credit card companies what I owe for accounts that have been charged off and sent to collection agencies? Couldnt they then contact the collection agencies to report that I have paid. Even if the collection agency has bought my debt, the credit card company could pay them back and still have gained some money???

Answer 1

You should ALWAYS pay the collection agency because:

1)You don't know if the debt has been sold. If the original creditor no longer owns the account and you insist on sending payment to them, you won't get credit for the payment AND your credit report wont be updated.
2)Even if the original creditor owns the debt and you send payment to them, they will have to forward the payment to the collection agency. I've seen that take anywhere from 6 weeks to 6 months. Until the payment post to the credit reporting agency (collection agency) it WILL NOT be updated on your credit report.


People assume that by paying the original creditor they're 'sticking it' to the collection agency. The collections co gets paid anyway. May as well do it the right way and get your credit updated more quickly.

Answer 2

You can - however the problem you run into doing this is that your original creditor is under no obligation to notify that the debt has been paid on or off to the collection agency. And since the collection agency is reporting on your credit - you may be doing yourself more harm than good going this route. The collection agency has purchased your debt at a discount most of the time. For example. Say you owe 15,000.00 they will purchase your debt from your creditor for .50 on the dollar, and then go after you for the full amount. So while it would seem to make sense to pay your original creditor....in reality most of the time they have already been paid for it, and just given the debt to someone else. Because the collection agency has purchased your debt at a reduced cost, sometimes this works to your advantage and you are able to make arrangements to pay less than you actually owe, since they are still going to be making money on the deal.

Answer 3

The credit card company will not take your payment if they have sold the note. Your only option, unfortunately, is to deal with the collection agency. If you make ANY arrangements with the collection agency, get EVERYTHING in writing, and never let them draft your checking account. Some of the less scrupulous collectors will try to renig on your agreement, or take everything out of your checking account instead of the agreed amount. If you have about half of the amount owed, you may be able to settle with them. Good luck, and be careful.

Answer 4

Your account with the credit card company is closed. They cannot touch it. They will not touch it. You are stuck with dealing with the collection agency. Had you contacted them BEFORE it went to collections, they most likely would have worked something out with you because if they get 50% of the balance owed from the collection agency, they're lucky. They often get SIGNIFICANTLY less than that, and you've created a nasty snarl on your credit report.

Better luck next time, consider it a lesson learned.

Answer 5

If collection agency is calling you, then your debt has been SOLD to them for a lower amount. You have to deal with the people who OWNS the debt, which is the collection agency.

You should have given ample chance to pay the original creditor and you failed to replay. The credit company has already written you off as uncollectable.

Answer 6

No. You MUST deal with the collection agency. Not only did the credit card company sell your debt, they closed your account and reported a loss on that account for tax purposes. So they'd be committing tax fraud to then accept money on it.

Answer 7

No, you can't pay the original creditor. They sold this debt to the collection agency so you owe then now, not the original creditor.