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Tonygzz

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Will paying off a closed account when the debt has been sold help?
I have two credit cards with debt less than $500 both accounts have been closed and charged off (deragatory) and sold to debt collectors will paying these new debt collectors affect the original creditors remarks or my credit for that matter? Is the new debt collector even going to report to my credit? Thank you for the help

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When a account/debt sold to collection agency, then original creditor no longer hold the debt nor have authority to collect on it. Paying collection agency won't change the status with original creditor, it still will/can be reported as charge-off, however it's balance should shown zero. Collection agency certainly can report it, It will be up to them to decide to report or not.

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The original account with the charge-off remarks will remain there. That company is done with your account already, and whatever happens between you and the collections people isn't going to change the status or comments.
I would pay the collections since it's so small. It won't really help your credit score, but it makes your REPORT look better. If you think you may be moving at some point before they age and fall off, you'll be glad you did. You won't be able to get a mortgage and probably will not find any property manager willing to work with you if you have open collections on your report. Prospective employers are looking at that sort of thing more and more also.

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a note on charge offs

The info the others have posted is correct, But I wanted to warn you about charge offs and your taxes.   Charge offs of $500 or more will generate a IRS form 1099misc showing the charge off as unearned income.  Its money that you have to pay taxes on. In general the form will be filed with the IRS at the end of the year so they can take the credit for the loss.  The following year you can expect a letter from the IRS wanting you to pay the taxes on the amount that was written off usually at a rate of 38% depending on the amount. Then, the following year, The IRS will report the income to your state, so you can expect to have to pay the state income tax (if your state has state tax) once that is reported.  

Charge offs are a monster with a very long tail.

Good luck

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