I had a credit card "charged-off" on my credit report and a collection agency that is for the same account is also on it. I was going to pay the collection agency when I got a letter from the credit card company that says I can still pay the charge-off. Do I have to pay both of these now or is one better than the other? If I pay the original creditor will the collection be taken off?
2007-03-07 02:36:01 · 6 answers · asked by heatt28 2 in Business & Finance ➔ Credit
You do not owe both. In fact, you should put in a dispute with Experian, Equifax and TransUnion, pointing out that these are both the same account so that only one shows up on your report.
If the original creditor will settle with you on the debt, then pay them. Ignore the collection agency and file a dispute to get them taken off your report.
2007-03-07 02:44:20 · answer #1 · answered by Faye H 6 · 0⤊ 0⤋
You can negotiate with the collection agency for a letter that complete removes the account from your report like it never was there for a lower full payment then what you owed. Some agency allow for this some don't. The collection agency probably has already bought the debt from the creditor pennies on the dollar and the credit company has already booked it as a lost. You can always call the creditor first to see if debt has been transfered then negotiate with the proper creditor either your previsou company or the collection agency
2007-03-10 18:40:30 · answer #2 · answered by Hiddendepths 1 · 0⤊ 0⤋
No you do not owe both. Basically the dual account reporting is a "double jeopardy" for your charged-off account. If possible, AVOID the collections agency and make your payment directly to the original creditor, i.e. the credit card company that you held your charged-off account with. If you have to pay the collections agency, make sure that you keep proof of payment, because a lot of collections agencies are sleazy and manipulative and do not follow the laws. If you go through the collections agency, then you will probably have to follow up with it and make sure that the account has been reported as PAID AS AGREED on *both* accounts showing up on your credit report.
2007-03-07 03:38:44 · answer #3 · answered by buffalo_billz_2003 3 · 0⤊ 0⤋
Most likely the credit card company sold your account to a collection agency. The collection agency will pressure you to pay and they will take a large cut of the payment. The credit card company may be trying to get you to pay them since they know the collection agency is pressuring you to pay the bill. Then the company wouldn't have to pay the agency anything or at least less than if they collected it.
I admire you for standing up and doing what is right. Too many people are trying to skate out on their bills, and it is the rest of the economy that will pay for it with higher prices for what we buy.
Since you are planning on paying the bill, contact both the company and the agency and see what they say about who to pay. I'll bet each one will say to pay them. I personally would pay the credit card company and when the collection agency contacts you, tell them that the bill has already been paid.
2007-03-07 02:50:46 · answer #4 · answered by Fordman 7 · 0⤊ 0⤋
You do not have to pay both. The collection agency has been hired by the company to pay. Since the company has sent you a letter I would recommend that you call them and ask about your options. They want their money and depending on the amount, they may even agree to some payment arrangements. You can also ask them if you pay it that it not be reported to the credit agencies. They often will agree not to report.
2007-03-07 02:43:27 · answer #5 · answered by Anonymous · 0⤊ 0⤋
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2007-03-07 02:43:25 · answer #6 · answered by ran j 1 · 0⤊ 1⤋