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Paying CA's: What a mistake!


Drew
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I paid off two CA's a few weeks ago and now it's showing the remaining balances on my credit reports. The account status' says "derogatory" and I'm not sure what that means.

I paid another charged off account through the OC during the same time frame and the account status for them says "paid/closed".

What does this mean, that another CA can collect for the remaining debt?

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Did you not negotiate a PFD in WRITING??:ah:ah:ah:

And yes...even if you didn't negotiate at least for them to accept a settlement as payment in full, then the CA can sell off the balance or continue to attempt to collect it from you. When opting to pay CAs, the only thing you should settle for is a PFD. Paying it will get you either a paid collection or a lesser balance, which is what you've experienced. "Derogatory" means negative/adverse.

OC and CA listings are different. An account w/ the OC can be reverted to a positive TL; a CA's can't. Once it's a collection, paying it will not make it look more positive.

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They said that the settlement amount would cover the entire balance. I mean, was I completely lied to then?

::laugh::

Hun...it's what they do. That's why we constantly preach to members..."ALWAYS GET IT IN WRITING"!! They can tell you that if you send them a check for more than the balance, then they'll mail you your change...doesn't mean that they will. Don't trust them. They are about making $ and not about helping you repair your credit.

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The letter says "We are in receipt of your payment totaling ###, received in our office on or before 3/26/2007. This letter serves as confirmation that our client has agreed to accept less than the full balance due as settlement on the above mentioned account."

Isn't that what I'm supposed to have in writing?

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The letter says "We are in receipt of your payment totaling ###, received in our office on or before 3/26/2007. This letter serves as confirmation that our client has agreed to accept less than the full balance due as settlement on the above mentioned account."

Isn't that what I'm supposed to have in writing?

If you want the account to show as "paid collection", then sure. But if you want it deleted, then the letter should state that they will delete the account from all 3 CRAs once the account has been settled or paid in full.

It would seem that the letter indicates that the account is settled and should be reporting a $0 balance; however, some will still sell off the balance. In case they do, you should keep this letter and be willing to fight them on it.

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Originally, I found out about the CA's because of my attempts to settle with the OC. The OC's are the only one's with listing on these accounts thus far. So, what's being reported is what I owed minus the amount I agreed to settle for.

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Originally, I found out about the CA's because of my attempts to settle with the OC. The OC's are the only one's with listing on these accounts thus far. So, what's being reported is what I owed minus the amount I agreed to settle for.

Okay, I see now. It sounds like to me that the OC was unaware of the agreement to settle the account as paid in full. You'll need to inform the OC of your dealings w/ the CA. Fax/Mail them a copy of the letter you received from the CA and ask that they update the TL accordingly.

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OH man... sounds like you got an 11 inch Pianist from the Genie! They consider it settled by not pursuing any further collections, the collections company doesn't have to delete simply by never filing, and the OC gets to show that you technically owed more on your CR. Something wasn't air-tight along the way.

Probably time for a GW letter.

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Okay, I see now. It sounds like to me that the OC was unaware of the agreement to settle the account as paid in full. You'll need to inform the OC of your dealings w/ the CA. Fax/Mail them a copy of the letter you received from the CA and ask that they update the TL accordingly.

GE Money Bank is actually the OC and at one point of the conversation they said I needed to call another CA because the remaining balance was sold. I said I wasn't going to deal with the other CA and I want my credit report to reflect that this account has been paid. They said they'll work on it and to call back tomorrow. Yeesh.

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GE Money Bank is actually the OC and at one point of the conversation they said I needed to call another CA because the remaining balance was sold. I said I wasn't going to deal with the other CA and I want my credit report to reflect that this account has been paid. They said they'll work on it and to call back tomorrow. Yeesh.

If they take too long, just remind them that the FCRA requires that all reporting be COMPLETE and ACCURATE. So, they least they should do is a report a $0 balance b/c it was sold. They can always say that they didn't authorize the CA to make such a settlement; but in that case, you would need to battle w/ the CA. But nonetheless, they must report the TL accurately, meaning a $0 balance, balance sold to another lender (or whatever).

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I'm thinking I want the TL to stay under the OC's name. So far, it seemed that settling the account actually raised my score.

Oh no, that's not going to change; no worries about that. It's not like they're going to take their listing off and replace it w/ the CA's. You're just asking them to UPDATE the TL to reflect that it was PAID, w/ a $0 balance (since the balance was sold or that they're going to honor the settlement).

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So, let's say I get a negative TL from a CA and the OC's TL remains with a $0 balance, does that affect me at all?

Do you mean for the SAME account? Yes it does b/c the CA's new TL will make it seem like you STILL owe the debt, although the OC's TL clearly says that you don't. It's up to you, the consumer, to ensure that your CR is accurate. Do believe, even if GEMB reports a $0 balance, it still doesn't take away that they sold the remaining balance. So, you'll need to watch your report & mailbox carefully b/c the new CA may just pop up.

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Well for instance, if a CA agrees to PFD, than would the old TL from the OC hurt my credit thereafter?

If a CA agrees to PFD, then that's good for the CA's TL ONLY. But since you said that the CA is not reporting, then there's no purpose to negotiate a PFD of the CA's TL. The 2 TLs are NOT connected. Whatever happens to one will not automatically change the other.

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