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Should you pay the credit card company when the debt goes to a collection agency so it may be active again?

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2005-12-08 14:36:27
2005-12-08 14:36:27

The collection agency is basically "the goon squad" to collect outstanding debts for that company you owe money too and you obviously owe them money and it's your responsibility to pay it back. Why? Because people who don't pay off their credit card debts or loans let this mischief filter down to others who are paying off their debts. You owe it ... you pay it! Please write a letter to the credit card company informing them of your circumstances (and you'd better be telling the truth) and ask if they could either lower their interest rates (which legally you can force them to do in the States) or the amount you can afford to pay each month. The credit card company just wants their money, and also, if you pay something on a credit card even though it's not the required amount they can't come after you as long as you are making an honest effort. All they want is their money! If you refuse to contact the credit card company by mail (and it should be by letter and Registered at your post office) then you can't expect them to work with you on your debt and your life will be one hell before it's over not to mention ruining your credit rating which you will certainly need if you want to purchase a car or a home in the future. Marcy It's always a good idea to pay your debts. But it is impossible to re-activate a defaulted credit card account. Once any account goes to a collection agency, the bad debt is due and payable in full. If you pay the debt, the CC company may agree to grant you a new account, but nothing can make the former, defaulted one active.

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if a collection agency has not bought out my debt from the original company can the collection agency look up my credit report?

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You have to pay the collection agency. The original company has a signed contract with the collection agency and they pay the collection agency a % of what they collect from you. That's how they make their $$. The original company did not want to have the outstanding balance on their books.

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I recieved a call from a collection agency but not able to find any info on the company. How do I know its legit? Company is Action Collects. Company was very rude with a customer that is willing to pay balance in full.

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If you have a collection agency working for the credit card company then it is them you need to make payments too as it is now too late to pay the credit card company. They have sold the debt to the collection company and you will have to pay any charges on top of the debt now also. Try not to let it get that far in future, but that's easier said than done.

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Absolutely they can ! The only reason a person needs to deal with a collection agency, is because they defaulted on payments to the original company. That company passed the account to a debt-recovery agency, who paid the sum YOU owe to the original company. If you simply refuse to pay the collection agency, they have the legal right to take you to court to recover the debt !

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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.

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A Commercial Collection Agency is and agency that collects debt on behalf of their clients, same as a consumer collection agency, but a commercial collection agency collects business to business.

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a collection agency can collect where ever they need to. they purchased the debt from the timeshare company (to use your example). what i don't know is if they can impact your credit if for instance you were in the US and the collection agency or timeshare company is out of the country.

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This will depend on the creditor. You can try calling them and asking if they are willing to set up a payment arrangement with you.

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No, as they are the legal agent of the original Creditor and the arrangements made with the collection agency are binding on the original Creditor.

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No. Once it is sent to a collection agency the company has closed the credit card.

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Yep! If the ambulance company turns your account over to a collection agency that agency might report the collection on your credit. Medical collections are the most common type of collection on a credit report.

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Bloodhound is a company who makes collection agency software for small and large businesses. It is a great program to manage activities and it is also affordable.

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No pay the vendor. If you pay the collection agency they will extract a fee from the payment and you will still owe the vendor

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A collection agency can charge you fees on top of your original debt. They can charge you a fee for their collection.

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The original account with a normal credit company went to a third party collection agency. Only after it went to the collection agency was the debt paid and then the account closed.

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Once a delinquent account has been turned over to a collection agency, the physician's office should stop billing.

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The commercial collection agency is used in debt collection in the event a debtor fails to.

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No - they will have notified you in reminder letters that they may do that if you continue to default on payments. When they actually instigate the action, they don't have to tell you they have done so - the collection agency will simply write to you - and tell you they've taken over the case, and all communication with the medical company must now stop, as you're now dealing solely with the collection agency.

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Even if the collection company goes bankrupt, you still owe the bank whatever money you borrowed from them. The bank hires the collection company to get that money, so you still owe them


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