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I have some questions regarding an OC and a CA


sugarsprings
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Hello, I'm new here and have read through quite a few threads. I'm hoping someone can help me with some questions. We were late with payments for a few months on a credit card. On February 20, 2008 I made an online payment to creditor in the amount of $900, but still had $21 as past due plus a $39 late fee. This $900.00 payment posted to the account on February 21, 2008, and cleared my checking account on February 22, 2008. On February 21, 2008 OC claims they charged off the account. Received a letter from a CA dated Feb. 25, 2008 in which they asking for the entire balance on the account to be paid.

I called OC; OC still owns the account but says they have assigned it to the CA. I asked OC if we were still going to be receiving regular monthly bills from them (the OC) and they said yes. I asked if I can continue making those payments to them, and again OC said yes. So I made the March payment to the OC, making sure to include the $21 that was still past due and also included the $39 late fee from February along with the regular monthly payment.

I have since been getting repeated phone calls from the CA. Most of those I haven't answered, but I did answer one the other night. CA is telling me that by making my monthly payments to the OC all of those payments are being applied "blindly" to the account, and CA insists I make payments to them, not to the OC.

I am very confused about this and do not know whom I should be making my payments to. If I continue receiving my regular monthly bills from the OC and continue making those payments directly to the OC, does the CA have any legal ground to stand on as far as filing a suit against me on this account? I'm not trying to get out of paying anyone; the problem is I don't know whom I should be making my payments to, especially since the OC says they will continue to take my payments and continue to bill me even though they've claimed to have charged off the account. The CA wants the entire balance now. What should I do?

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This is only My Humble Opinion, but under the circumstances I think you would be justified to tell the Collection Agency, in writing, that you are dealing with the Original Creditor, you do not want to deal with them, and they are not to contact you again (A Cease and Desist).

It seems to me you have gotten straight answers from the OC: they'll send you bills, and take your payments. The fact that they have "charged off" your account does not affect you. It just something they were required to do in the course of reporting their profits and losses.

In contrast the CA has subtley tried to scare you with the idea of your "payments are being applied "blindly" to the account", whatever the heck that means.

Finally, the CA can't sue you. Only the owner of the debt can sue you, and only through a licensed attorney. The OC would have to hire a lawyer, the lawyer would send you a letter which demands payment and threatens a lawsuit, etc. The CA would be out of the picture. And then you would have time to figure out what to do next, maybe by posting here again.

A couple things you might do: call the OC again, ask them to recall the account from the CA. Get them to confirm that as long as you continue making payments as you have they won't pursue legal action. Ask if they will send you a letter to this effect. Then you have an agreement in writing, instead of just an oral agreement. But also, don't make promises you can't live up to. Tailor my advice to fit your circumstances.

Good luck.

DH

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Thank you for answering so fast! When I spoke with the OC, I asked if they would recall the account so long as I continue to make the regular monthly payments, but they said no; once it's been assigned to a CA they never recall the account.

Yesterday I sent the OC a letter (CMRR) that basically says the same thing as my original post, and in it I'm asking them if they can pull the account back from the CA. I guess now it's just a matter of waiting to see what the OC does.

I also sent a letter to the CA yesterday (CMRR) telling them that I'm disputing their claim. I told them I am requesting that they validate with competent evidence that I have some contractual obligation to pay them. I'm hoping I did the right thing by doing this.

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First, I would never deal with a CA via the phone and almost never deal with one anyone unless I absolutely have to.

In the future, if you ever get behind, get something in writing from the OC (orginal creditor) about your account if your pay say $900 like you did and ask them to take away a late fee or two if you send them that lump sum, also ask them if they will no report it to the CRA since you have been such a good customer (if you have).

For now, I would just continue to make the payments to the OC and I would contac the OC and ask them to remove the account from the collection agnecy (CA) since you are current and working with you.

Again, just my opinion.

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