what happens when you pay the orginal creditor after it goes to collection agency?

Question

what happens when you pay the orginal creditor after it goes to collection agency?

Answer 1

Oh man, I am so sad the collection agency didn't get their fee! (...blowing my nose...)



Unless the collection agency purchased your debt from the creditor, they don't deserve anything.



Where you messed up is not getting an agreement from the creditor to remove any credit report from your records, in exchange for you paying off the bill. Big mistake. Now they can leave it there.



Remember, the creditor/collection agency doesn't give a rip about you or your life. They only want their money. That is the ONLY leverage you have over them. So in the future, insist IN WRITING that if you pay the bill they clear your credit history. Otherwise, why in the world are you paying them anything? You will still have bad credit, plus you are broke!



Get armed! This is war!!!



All you can do now is demand that a notation be placed on your credit report that the bill is now PAID IN FULL. It may still show late payments (not good) but it will help a little.



Good luck, read the links I've supplied for sample letters and other info.

Answer 2

Okay, if you pay the original creditor after an account has been turned over to collections it is called a "direct pay" the client will call the collection agency and tell them you paid it and they will mark you file accordingly. No collection agency will stop reporting to your credit after a payment in full is made. It will simply be reported as PIF (Paid In Full). An dthe collection agency still get their fee as designated by the ACA. Studly doesn't know what he's talking about!

Answer 3

Usually the original creditor is not allowed to accept payment after it is turned over for collection. The agency is now entitled to their fee even if the original debtor is paid.

Answer 4

in a nutshell, things get screwed up

Answer 5

^^ That's correct and it may show up on your credit report also.