Should I pay the original creditor or the Collection Agency???

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Rockstar87
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Should I pay the original creditor or the Collection Agency???

Postby Rockstar87 » Mon Jun 30, 2014 4:39 pm

I received a letter from a collection agency for an old account from Sprint. I called Sprint and they said I could pay off my account by simply going to the store and paying it off there. I asked if I payed it off would it come off my credit report and he replied yes. My question is if I pay off the debt at the store will it really come off my credit report and increase my score or will it still show as a derog. and my score not change? Also when I called the collection agency they offered my a settlement discount of 40% but I heard that settlements actually don't help your score. Since it's only $266 I honestly don't mind paying Sprint at the store if it'll come off, but if paying sprint doesn't make it come off then I'd rather just pay the collection agency and save a little bit of money
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randeman
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Postby randeman » Mon Jun 30, 2014 11:40 pm

I can tell you that I had, about five years ago, a $25 charge off by Verizon. I paid it directly to them and they took it off my report.

I would ask Sprint if they would put in writing that the paid charge-off would be removed if you pay it. They may not do it, but if they do you'll have some recourse.

I can't decide, based on what you've shared, who owns the debt. I think, not sure, that whoever owns the debt controls the entry on your CR. On the one hand, Sprint said they would yank the report if you pay it, which sounds like they still own it and are just using the collection agency to administer the debt. On the other hand, if the collection agency will settle for 60% then that sounds as if they may own it.

Here's what I'd do: find out who owns the debt and, if it's the collection agency, ask them if they will pull the baddie if paid at 60% (say "your offer") If they refuse, ask if they will do it for 100%. If they agree, and will put the promise in writing, deal with them. If the owner will not put the promise in writing--you pays your money and you takes your chance.
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Rockstar87
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Postby Rockstar87 » Tue Jul 01, 2014 12:38 am

I think Sprint owns the debt because the collection agency said that if I take the settlement offer it would report that to the 3CB but if I ever wanted to go back to sprint(which I would not) then I would have to pay Sprint the other 60%. Think I'm going to go ahead and pay Sprint the whole amount because they said if i did that then the collection agency would be notified and they and sprint themselves would not report it anymore.
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randeman
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Postby randeman » Tue Jul 01, 2014 11:44 pm

Rockstar87 wrote:I think Sprint owns the debt because the collection agency said that if I take the settlement offer it would report that to the 3CB but if I ever wanted to go back to sprint(which I would not) then I would have to pay Sprint the other 60%. Think I'm going to go ahead and pay Sprint the whole amount because they said if i did that then the collection agency would be notified and they and sprint themselves would not report it anymore.


I still say ask for that in writing, first. When I paid Verizon, I didn't even have to ask and they pulled it from my CR. Maybe not everyone would do that. Like I said before, they may not provide it in writing for you, but it's worth it to ask.
Cards and Credit lines Acquired:

Escape by Discover (7.75K), Barclay Holland America Visa (7K), Macy's store card (7K), Bloomingdale's store card (2.6K), Citi Custom Credit Line (3.5K), PayPal Smart Connect credit line (2.7K), Chase Freedom Visa (5K), Chase United MileagePlus Visa (5K), Chase Sapphire Preferred Visa (6K), Amazon store card (2.2K), Lord & Taylor store card (550), Nordstrom store card (1500), Gold Delta SkyMiles from American Express (3K), Discover It (6.5K), PayPal Credit Line (1K).



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