So if CA is collecting on acct does OC care ?

[tmac01]

I have been at this for almost two years and I just feel like this is a stupid question but if a CA is trying to collect on one of your accts is the OC getting any money out of this or does the OC get a cut of what the CA collects ? I mean I always hear that this CA bought this account...Now to my understanding the OC still wants their money and they can use a CA to collect it for them or they can sell it to the CA and write it off as a Charge off or loss, Am I correct on this ?

[momof5]

When an acct is first charged off, they send it to a CA, but they still own it. Yes, the OC still gets a cut of what the CA collects. That was the whole point of CAs to begin with.

Later, when they still can't collect on a large number of accounts, the OC will sometimes sell them as a package to get some money on these dead accounts. At that point, the CA or JDB owns the account and the OC will not see another penny.

[tmac01]

Thats what I am trying to figure out...Does my OC care about any of the money the CA is collecting ? The OC told me that I had to call the CA because they had nothing to do with the account anymore...Still confused

[wvufan788893]

The OC most likely sold your account to a JDB. If that is the case, then no they wouldn't care about collection on it because they are out of the chain.

They still will probably verify the tradeline though. Is that what you're driving at? If so, I will jump ahead of you and say yes, go ahead and dispute it without fear of reprisal; i.e., getting a summons.

[willingtocope]

As usual, there arent' any firm answers...at least not ones that we're completely privy to. Here are some of the complications...

1. While the OC still owns the account, the contract between the OC and the CA governs. Sometimes, the contract says that the OC will not get involved, and the CA has carte blanc (within the limits of governing laws) to collect. Those kinds of contract also usually say that the OC will not interferre. Most of those kinds of contracts are between the "out sourcing is a good thing" OCs, and the bigger CAs. These kinds of contracts are usually done on a "by the hour" arrangement...the CA gets paid whether they collect or not. Note that the OC may tell you "they have nothing to do with the account" because that's what their contract with the CA says...not because its true.

2. On the other hand, sometimes the contract is very loose and the OC can pull the account back at anytime. These are normally on a percentage basis...the CA gets paid only if they can badger you into coughing up money. Same notes still apply.

3. When the OC decides that the debt is uncollectable, or when they decide that they need a tax break, they'll sell the debt to a JDB (still a CA, but they now "own" the debt). You can tell when this happens because the OC's TL on your CRs will change to "written off / sold to another lender". Note that "charge off" is not the same thing.

[tropicaljo]

I agree with wvufan788893. First of all, you need to determine who owns the account, especially if it is several years old. I always asked point blank to the CA..."Does your company own this account or was it just assigned to you." If the OC sold the account, then chances are good that they no longer have the documentation to verify the info to the CRA's. Here's where it get's interesting. If the CA owns the account then chances are they are what is considered a JDB and they most likely paid pennies for the account documents. That being said, how much does one actually owe this JDB if he only paid pennies on an out of SOL or nearly out of SOL account? Also, since they bought the account in a lot (maybe with 99 other old uncollected contracts), chances are really good that supporting documents got lost in the shuffle. Dispute it as "Not mine" and "show me proof" and you'll do fine.