You aren't suppose to contact the original creditor once it goes into collections but the Collection agency will accept payments. They are happy to get any money they can. (they get 50% of what they collect)I used a collection agency for a tenant who wouldn't pay for months who I had to evict(went to court) and I received a couple of small payments until the person ran away and hid again. Both the collection agency and I were glad to get any money possible. Unfortunatly, this will show up on your credit report whether you pay or not........... But it is ALWAYS better to pay if in your future creditors eyes (fico score)
The first thing is that the original creditor will charge this off. Which means that the original creditor is no longer financially liable. This credit card will remain closed; which will decrease your credit score. Non payments for each month will also decrease your credit score each an every month. Late payments give you the same results. If this account is sold to a collection agency then your best bet is to negotiate a settlement, and get everything in writing before making a final payment.
First, collection agencies do not typically buy debts. They recover them under contract for the original creditor. Second, regardless of your ability or lack of to pay, the debt is still owed. By law, the creditor need not accept anything less than the amount owed or balance in full. Third, keep all records of payments made to all creditors including mortgage and utilities and basic living needs, plus all income received, and when you receive the service to appear in court, show up and present this all to the judge. He will not likely forgive the debt, but he will order payment arrangements based on what you bring, especially if you have in writing any refusal to accept payments, and this will reflect poorly on the original creditor.
If you have a written agreement from the collection agency specifying the terms of your repayment plan and you have fulfilled (and are fulfilling) those terms as specified in the agreement, they probably cannot. If the collection agency is empowered by the original creditor to file suit and you do NOT have a written agreement from the collection agency as specified in paragraph one (1) above, they probably can. The laws of your state will prevail.
Yes, they can. However, most don't provided you make a payment agreement with them and honor it until the bill is paid in full.
Some collection agencies are authorized by their clients to make payment arrangements. Some agency actually purchase the debt and will or won't make arrangements. It is up to the individual agencies and their policies. Your best option is to contact the original creditor, explain why you fell behind, be very apologetic, and ask for payment arrangements. Legally, they are not required to accept payments once you fall delinquent. They do not even have to accept partial payments.
If the debt was properly assigned by the original creditor, yes. If you are making payments to the Original creditor than ask them to pull it back from there Collection agency, then dispute with the CRA's and when they update it should delete
Same thing happened to me..... what does this mean? I have not heard anything back from original creditor and was making timely montly payments to collection agency... I am confused and a little scared
Legally, yes. But it is unlikely that a creditor would take such action.
Yes, they are contracted to collect on behalf of the original creditor and it's contracts with you.
This will depend on where you live.Where I live the Creditor can put the debit into collections as many times as he likes as long as:It is being pursued by only one collection agency at a timeIt has not expired under the lawIt has not been "Satisfied" under the law. Bankruptcy is an example. So is a valid payment plan as long as the payments are made on time.
Paying the collection agency will clear up your account much quicker and some creditors will return the payment to you if you send it directly to them. Most creditors sign a contract with a collection agency and cannot discuss the debt with the debtor once they place it with the agency, they must refer all correspondence, communications and payments to the agency for the life of that contract.
The report will be removed 7 years after the date of the last on time payment to the original creditor.
== == A Deragatory record is an account that has had a history of late payments. A collection account is an account that was not paid on time or at all, and was closed by the creditor and sold to a collection agency.
A collection agency is not hired to get the amount paid in payments they are paid to get the amount in full. At this point the place you originally owed the money to and did not pay may or may not be willing to take payments being that they have now hired the collection agency to get the money from you. YOu can call the original creditor and tell them you are willing to pay and if they say no then you must pay the collection agency, I have never heard of any of them taking payments. When they get hired they try to collect as much as possible of the owed amount so they can get a higher commission. They dont want payments they want money in full....
You can, but not directly from them. The debt collector is the agent of the original creditor and does not likely have all records of the debt or contract. The collector, as the agent of the creditor can go back to the creditor and request a reconciliation of payments and history, and will in fact be required to so that it van be verified if you notify the collector in writing that the debt is invalid due to payment or some other reason.
The only person that can accept payment once an account has been charged off is the purchasing agent. When a collection agency purchases your debt, they purchase all legal rights to it, including any payments made towards the account. If you were to pay the original creditor after a chargeoff, they are required to forward that payment to the purchasing agency and this can be a rather lengthy process. Understand that many debts that go to collections are interest bearing and the longer a payment takes to get to the correct party, the more you may be paying in the end.
To access to bank account as such, no. But if the debtor agrees to have ACH for payments, then the creditor or collection agencies can withdraw funds, or depending on the state laws a Judge can authorize to garnish wages from the bank. Find laws that apply to the debt in the resources box