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What else can I help you with?
Who sent you to the collection agency?
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).
Can a creditor continue to report delinquency to a charged off account?
Once an account is settled, as with a charge off, the creditor must refelct that the account is settled. Failure to do so is a violation of the Fair Credit Reporting Act, a federal law. Dispute the bad reporting first with the credit bureau (Equifax, TransUnion or Experian). If they fail to change it within 30 days, file a formal complaint with the Federal Trade Commission (FTC) who is their regulatory agency. * Yes. A charge off does not indicate a debt is settled or not fully collectible. A charge off simply indicates that the original creditor is clearing the account of the books and referring it to a collection agency.
Can you be sued by a collection agency for fees if you settled the debt with the original creditor?
Yes. If a debt is defaulted on, there are several penalties that can be assesed by the collector. They can sue andmaybe received a judgment. Collecting on any judgment, however, is a different matter. Proof of payment to the original creditor would provide an affirmative defense to a lawsuit from a collection agency.
If Company A sends your acct to a collection agency but you decide to pay off Company A do you still owe the collection agency money?
Nope. Advise the collection agencey that this was settled with the original creditor. You may have to provide them with a copy of a canceled check or money order. You can also have the creditor call the agency. Some will, some won't.
If your card account is settled in full with a collection agency is it necessary to get a confirmation letter from them and the original creditor?
Just to be safe I would. It's always good to keep track of your finances. Credit companies do make mistakes so it would be helpful if you did have the proof for future reference.
What is the best way to negotiate a 'settled but satisfied' collection account that cannot be paid off in full?
Definately in writing. Get a written confirmation of the accepted amount from the creditor before handing over the settlement. If the account is currently listed as 'in collections' or 'charged-off' paying this account will most likely show 'settled/not in full' or may show 'settled' and the dollar amount of what was paid [by you] and what was not paid.
If a collection agency refuses to settle medical debt and you can't pay what is the worst they can do?
The collection agency can take you to court and garnish your wages. You should attempt to contact the original creditor and make negotiation with them if possible. If this is not possible, attempt to set up a reasonable payment plan with the collection agency. Having wages garnished sets back your life until the debt is paid off. * Collection agencies have no legal authority. If they are a third party collector that has purchased the account they can refer the account to an attorney who can file a lawsuit in the appropriate court in the debtor's state of residency. If they are working for the original creditor the original creditor must be the one to implement a lawsuit. If the plaintiff wins (they always do) a judgment will be entered against the debtor. Judgments can be executed according to the laws of the state where they are issued. Generally a judgment can be used as a wage garnishment or bank account levy or seizure and sale of non exempt property or a lien against real property. In most states it is possible to execute judgments against jointly owned property even that which is considered marital. Judgments are granted from 5-20 years and most are renewable and can be executed at any time the judgment creditor so chooses and will continue to incur interest until they are paid or settled.
Is it bad to settle an account with debt collector or should you pay in full?
Your question is vague. Paying in full is settling an account. If you are asking whether it is a good idea to make payment to the collector, it is fine as long as you keep all proof of payment and request a paid in full receipt when the account is settled. If you are asking if making arrangements to pay over time to the collector is a good idea, then only you can answer that with your knowledge of your personal financial situation. Refer to the previous scenario. If you are asking if it would be better to make payment to the original creditor, this is never a bad option unless you have had difficulty with the original creditor in the past. If this is the case, perhaps it would be best to pay the collector and allow them to mediate between you and the creditor.
How Long does it take to have a collection account removed from your credit report once its been paid?
According to everything I have been reading, the collection can stay on your credit report for 7 years from the date of the original default of payment. I have understood that to mean that if your account was trnsferred from a creditor to a collection agency, the date of default cannot be updated along with it. I also understand that there is an opportunity to negotiate with the collector to make a certain settlement payment as long as they are willing to remove all negative information related to this account from your report. After all, they are buying the debt under the assumption that they can make some money on it, so showing a willingness to pay has to get their attention. Make sure you get this writing if they agree to it, however keep in mind that they do not have to agree to your request. It will remain on the credit report for the required seven years but will (should) be noted as "paid or settled".
If you are delinquent in repaying your credit card debt can your bank account be 'frozen' if the account is with a different bank than the one in which you hold an account?
Even though I do believe your privacy policy has been invaded, I do believe the bank can freeze your account. Answer Yes, if the creditor obtains a judgment by means of a civil suit against the debtor the judgment can be executed as a bank account levy, this means the judgment creditor can remove all non exempt funds from the account until the judgment is paid. Where the account is joint and only one of the account holders is being sued and/or the creditor plaintiff believes the defendant debtor may try to withdraw all the funds the plaintiff can request the court to 'freeze' the account until the suit is settled.
I have a credit score of 590 with a charge off account that has been settled and a collection account can I get a car loan?
yes you can get a car loan however the interest rate will be high....your payment therefore will be much higher....
What does settled mean on your credit report?
A credit report will show that an account is either active or settled. If the account is settled, it means that it has been paid and is closed.
