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OC paid, CA still reporting debt owed.


wrenchdevil
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I recently paid a debt in full to an original creditor (a school debt). I disputed the account on my CR as it was reported by a CA. The CA verified the account and today, I received a letter from the CA saying I still owed the debt,plus their inflated costs, and to contact them to make payment arrangements. I know for a fact the OC cc'd the CA a letter that they gave me when I paid the debt in person, stating that I had fulfilled my debt obligation and paid the debt in full.

Fortunately the OC never reported the debt to the CRA's, but I now want the CA to remove the TL entirely from my CR on the grounds that I paid the debt to the OC and owe them nothing. I have all the documentation I need to support my claim.

Also, since I paid the made payment directly to the OC, I am hoping that the CA can not report the debt as paid (as they actually never received payment, therefore can not say I paid them). Am I correct in thinking that?

What is the best approach now when contacting the CA to have this removed from my CR.

Thanks as always!!

D

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This may not work out the way you want it to.

Your decision to pay the original creditor (OC) directly, while understandable, does not automatically change or revoke the business arrangement between the OC and the collection agency (CA) nor does it mean that the CA can’t continue to try and collect whatever the difference is between what you paid the OC directly and what the CA was/is demanding.

Realistically, there isn’t much that the CA can “do” to you to get you to pay but they can continue to try and collect ant they can report the tradeline so long as they report it accurately; at east they can until the OC tells them to stop/revokes their contract.

Unfortunately, now that you’ve paid the lion’s share of the debt, you’ve left yourself with very little leverage with the CA to “not report”.

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hmm..but hasn't the OC broken their contract with the CA by accepting payment? I'm going to call the OC tomorrow and see what they are willing to do. This debt was at a local church's school, so it seemed the right thing to do to go ahead and pay what I duly owed them..

Maybe I am seeing this with blinders on, but it seems that a CA would be reporting incorrectly if they show that I still owe the full debt, yet can not report it as paid if they were not part of the payment process as no monies crossed their hand..

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Robert is right that you have diminished you ability to negotiate, however (at the risk of Roberts shaking fingir, love his post direct and to the point and kinda an icon here) if the debt is paid and they are reporting other than, then there are FCRA violations. If you have disputed and notified CA of paid status and they still report other than paid you have them and can probably pass the bonafid error defense as you have tried in good faith. The only way I see they can report with an unpaid ballence would be to open a new TL as OC for fees.

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hmm..but hasn't the OC broken their contract with the CA by accepting payment? I'm going to call the OC tomorrow and see what they are willing to do. This debt was at a local church's school, so it seemed the right thing to do to go ahead and pay what I duly owed them..

Maybe I am seeing this with blinders on, but it seems that a CA would be reporting incorrectly if they show that I still owe the full debt, yet can not report it as paid if they were not part of the payment process as no monies crossed their hand..

Contract maybe dunno, FDCPA allows payment to OC.

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True, the CA should not be reporting that full debt still owed; however, in your original post you said you had “recently” paid the debt…I don’t know how recent that actually was but you do need to allow a reasonable amount of time to pass before you can expect your reports to reflect a change.

Moving on, the CA could reasonably argue here that they did their job and should be paid for their work…even though you didn’t pay the CA, it was the CA’s reporting that appears to have prompted you to pay the debt. Since you paid the debt after the CA became involved, the OC can’t really just “change their mind” about hiring this CA to collect for them. All that to say, I think either you or the OC is probably owes something to the CA and it will have to be paid before all this goes away.

I would talk with the OC tomorrow and see what you can work out.

While it’s too late to help you now, your situation is why many of us preach on having written, signed agreements in place before money changes hands…that’s the only way for all parties to know who has to do what and when.

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I certainly don't mind direct and to the point, even if it is not what I wanted to hear! better to know the whole naked truth ahead of time than be disappointed later on.

I am thinking/hoping along the lines that you bring up Wahoo, about CA reporting incorrectly as my grounds for deletion.

I paid the debt on Dec. 1st 2008. And the OC did say that they would have to pay the CA a fee, and were willing to do that from the payment I gave them(who knows if they really did).

Anyway, going to call the OC tomorrow and see what they will do.

Thanks for the replies!

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This MAY work out the way I want it too!

I called the OC today, who in turn spoke with the CA. The OC asked that the negative account be entirely removed from my CR which the CA has agreed to do. The OC then called ME back to inform me of the situation and that the account should be off within 2 days and if not, to give them a call and they will call the CA again.

we'll see what happens...

Thanks to all those that replied to my post!

D

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