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matadm

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Paying off a collector
To make a long story short. I have an account from US Bank that went into collections around early 2016. I have spoken with the collection agency and have since transferred my account to a law firm. I spoke back and forth between these two companies all morning. On the first phone call I scheduled the payment to come out later today. However, being a novice in the credit world, I had a harder time knowing all my rights. I have since revoked my right for them to collect the debt.

While speaking with both the law firm and the collection agency. The law firm continually stated that they have to right to answer or make any changes to my credit and that I needed to speak with the collection agency. Speaking with them was not only a nightmare, I spoke with 3 different supervisors and all refused to remove the debt from my credit report and that they would only report it as is. Meaning if I pay in full, they'll mark paid in full, etc...

After revoking my permission to collect the debt, I headed over to dispute.transunion as per an article I read stating that I should have no contract with this collection agency. So I filed a dispute as "Contract Cancelled" and notated "No Contract" in the comments.

So my questions...
1 - Is it true that the law firm cannot (on behalf of the collection agency they represent) make or inform them that we agreed to remove in full.
2 - After speaking with the law firm/collection agency and nearly making a payment, have I now agreed or entered a contract with them?
3 - Any other advice regarding how I remove this debt completely and not marked as "Paid in full" because I've heard this will not improve my credit score, but could in fact harm it further
4 - Lastly, the fact that the collection agency is referring to me a law firm. Am I going to be threatened or sued? If so what might be the best course of action?

Any credit advice or tips is extremely appreciated!

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Since this debt is only about a year old you could be sued for it. Whether or not they would actually take you to court would depend on if the amount was worth it. The law firm (if it is actually a law firm, may just be another department of the collection company used to scare people into paying and no actual lawyers are involved) would not be able to make changes to your credit reports, only the collection agency could do that. Since the collection company is reluctant to agree to a pay-for-delete you probably won't be able to get one. You can do some reading on the FDCPA (fair debt collection practices act) to see if this company could be violating the law in any way. If you cannot come up with anything there, I would say you may be best to just go ahead and pay the debt. Having a closed collection without potential lawsuits hanging over your head would be better than where you are now. It would also help your scores over time.

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