Do Bill Collectors have to stop if I pay original creditor?

Question

I was unemployed for several months and wasn't able to make even the minimums on my credit cards. Well, I have a job now and I've paid some of my cards, but some had already gone to collection agencies to hound me. I paid the creditor directly (for example, Sears) and not the collection agency. I just went online and made my minimum payment, which included lots of late fees and stuff. Does the collection agency have to back off? Or will they keep hounding me?

Answer 1

You should deal with the collection agency because the account has been assigned to it. If you have made any payments, let the collector know what you have done so the collection agency can properly credit the account on their records. A big outfit like Sears may have its own collection department, but in any case you should ask. If you are unemployed again, call the creditor and let them know. You might be able to keep the account out of collection and cause less damage to your credit rating.

Answer 2

Sometimes the original creditor charges off delinquent accounts and sells them to collection agencies. You have to deal with the collection agency as they own the debt.

Sometimes the original creditor hires collectors to work on delinquent accounts. You can still go to the original creditor and pay. But if you don't pay the account in full, you are still going to hear from the collection agency.

Paying a minimum payment and the late fees may not be enough. When you failed to make payments, you defaulted and the entire amount is now due.

Answer 3

You do NOT have any legal obligation to even talk to a collection agency, unless they have supplied you with proof they have purchased your debt.

NOTHING prevents you from contacting the original creditor and negotiating a payment plan.

It is up to the creditor if they want to talk to you or not. So all this talk about you MUST ONLY talk to a collection agency is a lie.

What have me confused......Sears took your payment online? That would mean your account is still open?? Cool! Keep paying, don't call anyone. If you have the balance paid up what can they do now?

Answer 4

I wish you would have called Sears b4 you made your payment...call them now and see what they tell you. they can definitely still take your payment if they want otherwise they are not reporting to the collector ...for example that payment you gave them is just sitting there the bill collector hasn't been made aware. I would prefer to make a payment to the company itself but sometimes once you to a collection agency the original collector wont even talk to you, if you want to fix this problem the collection agency will give you payment options.

Also if you have some money you can offer to settle the account for example if you owe 300 but you tell them hey i have 180.00 will you settle with me for $180.00 and they agree they will leave you alone...the only thing is that when u settle it stays on your credit report it will say settled instead of paid in full.

Answer 5

Unfortunately once it has been turned over to collection, you can no longer go back to originator and pay them, or so I've been told. Obviously, you gain by paying direct, because if the collection agency collects, they take thier fee and the originator gets the balance. I'm glad you're getting on your feet again. Good Luck!

Answer 6

You need to pull your credit on online for free at www.annualcreditreport.com pull all three. Make online disputes with any collection agency. This is free and the three credit reporting agencies must investigate your dispute. Keep on them until they remove it. PROVE IT OR REMOVE it is the key term. Keep sending them letters i.e. experian until they remove. Ask the collection agency to see written proof that the original creditor gave them authority to collect your debt.

Answer 7

You need to get ahold of the company you paid the balance to and ask them to contact the collection agency and tell them you've paid it. The collection agency then has to back off. Make sure to keep receipts of it being paid. Along with the company calling the agency, I would send them proof yourself that it's paid. If they don't back off, you can sue them for harrassment cause you have the proof it's paid. I had to do this with a collection agency after I paid my electric bill balance from years ago. The electric comp. called and told them, but the agency kept calling and sending me letters. After I filed suit, they backed off. I eventually dropped it cause there's no point if they stopped. I only filed to scare them. It worked!!

Answer 8

You do not have to deal with collection agencies at all. Think of it this way you owe Jane $5 and she gets Bill to ask you for it and he charges you $10. It's completely optional . Don't let them bully you. Simply tell them I don't want to do business with you.

Answer 9

in the beginning, i could threaten to call the law enforcement officers on them for harassing a minor. they have not any impressive to try this to a toddler. additionally, tell them that in the event that they call you returned without generating a paper invoice, you will checklist their communique and variety reachable over to the police. First, determine the declare is valid. Google the variety - i does no longer be too shocked if it is a rip-off and additionally you locate one hundred different people who've fallen sufferer to their threats. the indisputable fact that they are harassing you and refusing to offer something in paper is amazingly suspicious. If, by coincidence, it is valid, pay the invoice, close the account, and tell them that any extra tries to touch/difficulty you would be pronounced to the appropriate government. humorous tale - my husband as quickly as have been given a invoice for 25 cents. the agency spent extra advantageous than that on postage to deliver the invoice. We the two have been given a reliable chortle out of it. My husband later advised me that he deliver them 2 quarters with a notice asserting, "shop the exchange."