Once the account has been placed with a collection agency, it usually doesn't matter who you pay. Sometimes the bank will accept your $$, other times, they will refer you to the CA (agency).
If the agency treated you in an abusive matter, then by all means report the behavior to the creditor and pay them dirrectly. A sympathetic ear in their office can get you a really good deal on settling.
It matters, pay the creditor.
Depends. If the debt (usually credit card) was sold then no. The original creditor will then have nothing to do with having the debt returned. Non-purchased debts can be returned to the creditor depending on the contract they have with the collection agency.
A collection agency legally require the amount of the debt, plus any other charges/penalties incurred in the collection of the debt.
No. The collection agency will validate the amount for you if need be, but the creditor no longer owes you the courtesy of a statement.
Recall of a debt by a creditor is when the original creditor asks for the debt to be returned to them after they have sold it, often to a collection agency. This may occur if the debt has not been collected for a certain amount of time, and the debt will be sold to another agency to collect, or if the debtor offers the original creditor a settlement.
Original creditors sale their accounts to collection agencies when the account has been past due and they have not effectively collected. At that time, the original creditor will charge off the balance from their accounts receivable and turn the account over to a collection agency. When the collection agency collects the debt, a portion of the amount received is paid the the collection agency and the remainder is returned to the original creditor as profit.
Either you can ask what collection agency the company you originally owed deals with or you will have to obtain your own credit report. * If the debtor did not respond to the 30 day clarification notice, the collection agency has no legal obligation to inform the debtor of the creditor, amount owed, etc. unless litigation is initiated. The debtor's credit report may or may not indicate which account has been sent to collections, as credit bureaus are very lax in keeping timely data on consumer's.
If the debt has been cancelled, no; if the debt has been charged off, yes.
You can always negotiate a settlement with the collection agency. When calling the collection agency tell them you will pay the full amount of the debt but not the fees. Collection agencies never buy debt for the full amount so they always have room to negotiate. They will more than likely take the amount without fees because they are still making a profit.
Before making any commitments to a collection agency, you should get confirmatio from the original creditor that the collection agency has legal authority to collect at settle the debt.
Yes a collection can ruin your credit report. Collections are similar to charge offs and will lower your score significantly all depending on the age of the collections and the amount owed. You can remove a collection by disputing it to the credit bureaus or by contacting the original creditor and working out a deal. Either way works well. You might have to hire a credit repair service if you decide to dispute it or have the money to settle the collection if you contact the creditor directly.
I presume your question is "how did your debt wind-up at a collection agency". There are 2 methods: (1) the original creditor sold your account to an agency for a price that is a fraction of the outstanding balance on the account (so the collection agency now is your creditor legally), (2) the original creditor contracted with a collection agency to get you to make more payment on the debt than you have while interacting with the original creditor only. In either case, a collection agency is a company that makes a profit by getting debtors to make a payment of sufficiently greater amount (than they had been making to the original creditor) such that a greater return can be realized from this continued effort to collect the debt, and collection agencies usually are profitable companies. In my personal opinion, the first method (# 1 above) is used in the vast majority of delinquent debt collection situations. Any creditor organization of at least medium business size has enough staff to attempt to coax the debtor to make more payment, so there would be no reason to contract a collection agency to try again. That latter point being understood, collection agencies sometimes resell a debt account to another collection agency when they give-up on trying to get more payment from the debtor (and the account has not been settled).
If your goal is to avoid future interest, letting an account go into collections is not the way to go. Collection accounts continue to accrue interest and fees, in addition to ruining your credit. If the balance gets high enough, the creditor or collection agency may file suit against you to recover the amount owed.