What happens when a lender is repaid an old debt long after they sold it to a collection agency?
alizarinlily asked:
I have a bunch of negatives on my credit report and I am in a position where I can pay back my debts. I want to pay back the original lenders not only to assuage my guilt, but also to make a deal to delete my negative info. If I pay back lenders in full, what happens to the collection agencies that are on my report that “bought” the debt? Do I inform the credit agencies to investigate? Do I ask the lender to help? (Why would they want to?) Does it just go away? I’ve searched everywhere online and at the library and I can’t find the answer. Thanks in advance for your advice!!
Gregory
I have a bunch of negatives on my credit report and I am in a position where I can pay back my debts. I want to pay back the original lenders not only to assuage my guilt, but also to make a deal to delete my negative info. If I pay back lenders in full, what happens to the collection agencies that are on my report that “bought” the debt? Do I inform the credit agencies to investigate? Do I ask the lender to help? (Why would they want to?) Does it just go away? I’ve searched everywhere online and at the library and I can’t find the answer. Thanks in advance for your advice!!
Gregory
Tags: Collection Agencies, Delete, Guilt
March 29th, 2009 at 4:18 am
Gabriel
They’ve probably already written it off if its very old.
I’d get a letter from them showing that you’ve paid. Also send whatever info you have showing payment to the collection agencies.
It takes 7 years for bad marks on your credit report to go away. Your credit report will eventually show paid with however many months/years of non-payment– I’d press them to do this but they should do it by themselves.
March 29th, 2009 at 11:10 am
Esther
STOP right there!!!!!!
DON’T pay the debts until you pay off the collection agency first! That debt was sold (for a price, by the way).
If you have the money, AFTER the collection agency has been paid, and you feel this need to make things “right”, then you can pay the companies the money you “owe” them.
In time, if you suddenly became financially responsible (unlikely) the credit report will eventually (years) repair itself.
March 29th, 2009 at 10:27 pm
Kim
well when you pay it off to the collector it comes off your credit report. now if you repay that amount they will send the money back to you.
March 30th, 2009 at 11:29 pm
Aaron
well, you can pay off your debts too the collection agency and not the company. your credit report will change but it will still say collection. At the status of it will say paid in full which will be a positive for you on your report. it will not come off until 2 years