When paying old debts to clean up credit rating. Should one pay the original creditor or the collection agency

The bankruptcy is to expire in the next few months. In order to clean up my credit, I need to pay off old non-discharged debts and some incurred since the bankruptcy. Should I pay the money I owe to the original creditor or to the credit agencies that are contacting me about the debt.

When paying old debts to clean up credit rating. Should one pay the original creditor or the collection agency
Who died and put collection agents in charge??????





Unless the collection agency purchased your debt (not as frequent as you think), they were hired by the creditor to collect the debt.





You do not have any legal obligation to even talk to a collection agent. But the creditor also has no obligation to talk to you either. They can simply tell you to call the agency and deal with them, since they are "pro's" trained in dealing with debt negotiations. They spend many hours in class learning to say "No, pay up or else!".





So by all means call the creditor first and see if he will work with you. It's been my experience while helping people that they will work with you, and even cut you a better deal then the collection agency.





Keep in mind that Collection Agents do not make money by cutting deals...they earn their money by collecting debts, and as much of it as possible.





But be warned!!!!!





You are trying to fix your credit rating, remember? It does absolutely no good to pay off your debt if the creditor does not remove any negative inforamtion from your credit report. If they say they can't do it, they are lying! It can be done and I've had it done! There is nothing in the law, or the credit reporting agreements that says they can't!





Remember, the law is the "Fair and Accurate Credit Reporting Act"....is it fair to pay a debt and still have it shown on your credit report that you defaulted? Make them remove the negative information!








But you need to demand that they do it, and get this IN WRITING before you pay them a dime.
Reply:You have to pay the credit agencies that are calling you. The original store you bought your stuff from sold the Accounts Receivable to the credit agency, so you now owe money to the credit agency.





This happens alot. The original store hasn't been receiving the $1000 you owe. If they don't get paid, they will have a loss of $1000. However, the store has the option to "sell" that debt you owe them to a credit agency. When the store sells it, they sell it for like $400 and the collection agency collects $600 from you directly. This works out for both the store and the agency, because the store now only has a loss of $600 instead of $1000, and the agency profits $200 at the end of it all.
Reply:You have to pay the collection agency that now own the debt. I would contact this agency and bargain the payment down, because they will in 80-90% of the cases. Tell them you came into some money and you want to pay off as many debts as you can and they are one of the ones you want to pay off. If they are asking for $500.00, see if they will accept $150.00? They might say no at first but ask to speak to a manager and tell him that is all that you have to pay on this particular debt. Do this with all your debts. Don't antagonize them, finally agree on a settlement less than what you owe.





After you and the company has agreed on a payment tell them the payment is contingent upon them marking your credit report as "PAID" that is all you want on the credit report.





If necessary draw up a little contract for them to sign saying something like I agree to pay you the amount of ____ on account #_________This shall constitue full payment for this debt. A further agree to make this payment in the form of a money order or cashiers check payable to your company. You agree to mark my credit report with the annotation "Paid". You sign it after which you should send it to them for their signature before you mail the agreed on payment. When you get the agreement back immediately send them the funds you agreed to send them in the amount you agreed to send.





This might save you a little money as well as raise your credit score faster than normal.





I hope this has been of some use to you, good luck.





"FIGHT ON"
Reply:Once it goes to collection, you have to pay them. The account has been sold to them. They get to keep 50% of the amount they collect.
Reply:Won't make a difference. The credit collectors get their take anyway, no matter who is paid.
Reply:IF THE COLLECTION AGENCY HAS THE ACCOUNT REPORTED TO YOUR CREDIT AND YOU WANT IT LISTED PAID, YOU NEED TO PAY THE COLLECTION AGENCY. THE CREDITOR SIGNS AN "ASSIGNMENT OF ACCOUNT" TO THE AGENCY AND THEREFORE THE COLLECTIONS AGENCY NOW HAS ALL RIGHT TO THE ACCOUNT.





IF YOU PAY THE CREDITOR DIRECT, AND THE COLLECTION AS ADDED FEES OR INTEREST, THEN YOU NEED TO PAY THEM. IF YOUR ORIGINAL BALANCE WAS SAY $500.00 4 YEARS AGO, THEN THERE HAS BEEN 4 YEARS OF INTEREST ADDED TO THAT BALANCE. IF YOU PAY YOU CREDITOR THE $500.00 THEY WILL FORWARD IT TO THE COLLECTION AGENCY AND THEY WILL PAY THE INTEREST FIRST, THEN APPLY THE DIFFERENCE TO YOU PRINCIPLE, THUS LEAVING YOU WITH A BALANCE STILL BEING REPORTED TO YOUR CREDIT.





CALL THE COLLECTION AGENCY, AND SEE IF THEY WILL TAKE A SETTLEMENT OFFER.





ONE THE CREDITOR HAS PLACES THE ACCOUNT IN COLLECTIONS, THEY ARE NOT SUPPOSED TO DEAL WITH THE DEBTOR ANY LONGER AND THEY SHOULD REFER THEM TO THE AGENCY.





STATE AND LOCAL LAW DIFFER, BUT THIS IS STANDARD.





GOOD LUCK
Reply:you have to pay what ever you still owe to the credit agency because all your credit info was given to them .
Reply:I would pay it to the credit agencies that have contacted you, If you try to pay the place owed direct, they may have already sent everything to the credit agency.....Delinquent amount's, late fee's etc.....or try calling the company's, %26amp; see what they say............