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Question By
Plucero5

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closed collections vs. removed collections
I have paid my collections directly to the company not to the collection agency. My reports show closed-paid collections. I never paid to the collection agency so why does this collection stay on my report as closed rather than removed?

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Helpful to 15 out of 17 people

This recently happended to me. I owed a bill for less than $200 and it had been sent to collections. I called the company to inquire about the bill which lead to me paying it over the phone at that time. The gentleman I spoke with advised me to dispute it on my credit report as being paid before being sent into collections. I took that advise and within 3 days it was removed my my credit report. I'm not saying that this is right or wrong just my personal experience.

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Helpful to 11 out of 15 people

unless you've negotiated a pay for removal, they will stay for 7 years. the only way to remove is to dispute it's validity, or the company can have it removed like i said if you've negotiated that. paying something off will not automatically delete it from your credit report. 

you might want to try and call the collection agencies, ask them since you've paid them off, will they "lose" your information. if they don't have your information on file any more, when you go to dispute it, the credit agency will be forced to remove it because the collection agencies will not have in their files....

1 Contribution
4 People Helped

Should I have

Helpful to 4 out of 4 people

I closed a credit card because I wasn't using it anymore was that a bad idea? my credit score dropped 18 pts . What did u do wrong?

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1 Person Helped

Firing debt collectors, not illegal...

Helpful to 1 out of 1 people

I'm not sure what state you are in "Krissie72" but in "NJ and under federal law, you have the right to ask a debt collector to stop contacting you and you can deal directly with the debtor.  It's best to put this request in writing, either by mail or by fax." [credit.com, "9 Ways to Turn the Tables on Debt Collectors"]

I've personally 'fired' the debt collector and contacted the debtor directly.  I paid them off immediately, and when I checked my credit reports a month later, they showed as "paid collections".  I filed disputes with all (3) credit reporting agencies, within 24-72 hrs they were removed from my credit reports.  NOTE: when I filed the disputes, I stated I fired the collection agency, paid the debtor directly, and offered a copy of the paid receipt.

So please, be careful about stating the legality of information.  Thank you.

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269 Contributions
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Helpful to 1 out of 1 people

If you paid the original creditor directly they most likely sent your money to the collection agency since legally they no longer have any right to collect that debt from you. The collection agency, having received this payment, then marked it as "paid and closed."   Once it's closed it still has to age off of your credit report. Just paying it doesn't erase the fact that it happened in the first place, nor should it. 
By the way, even though a closed collection is still a derogatory mark, it's still much better than an open collection. Remember, credit reports are used in many ways these days. Prospective employers and landlords will often have nothing to do with an applicant who has an open collection on their report.

As for all that "pay for delete" garbage you'll most likely read, forget it. Any collection agency that engages in that is violating their agreements with the bureaus and is jeopardizing their ability to do business at all. It probably happens occasionally (there are crooked people everywhere, after all), but this is the rare exception and not the rule.

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COLLECTIONS?

Helpful to 0 out of 2 people

Well it's always best to pay

Reply by
JL10281970

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Helpful to 0 out of 2 people

WELL it's always best to pay the Collection first?

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Reply by
pennstate04

227 Contributions
87 People Helped
Helpful to 3 out of 5 people

from a moral financial pov, yes it's best to settle your debts. from a credit score pov, it doesn't *always help, depending on how old the collection is and how it will be reported post payoff. 

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