Pay the Original Biller or the Collections Agency?

[gracej]

Hello everyone! I'm brand new to this, a recent college grad who is trying to get my financial life in order before settling down with my boyfriend. I've recently (and by recently I mean five days ago) taken a peek at my credit reports and have three accounts in collection. Two are medical bills from two car accidents I was in (neither my fault) from 2010.

 

While I would love to pay them and have them disappear, I know it's not that easy. I am dedicated (and make enough money, thankfully) to pay off each one, one at a time over the next three months. My question for y'all is, should I contact the original biller and try to pay them directly or do I pay the collection agency? Do the agencies actually give my money to the original billers? Finally, do the original billers remove my "paid in full accounts" from my credit reports, or do the agencies?

 

I know this has probably been asked before, but after a couple hours of searching, haven't exactly found what I'm looking for.

 

Thank you so much for helping me begin my credit journey!

 

-grace

[gracej]

<bump>

Only bumping this up because I have another question and can provide more details!

 

Spoke to the collection agency who owns my most expensive debt ($270) and tried negotiating it down to no avail--wouldn't put me on with a manager. She also said that if I pay the full amount they would send a "paid in full" letter to me. My question that she couldn't answer was if it would be deleted from all 3 credit reports, like I asked if I do pay in full (which I'm capable of doing, luckily).

 

My over-arching (and slightly stupid) question is who ultimately deletes collection records from each credit report? I do plan to pay this in full, since I can't work with them, but want to make sure I can get it deleted.

 

Thanks so much, you guys have already been such a phenomenal resource!

[Why Chat]

Were you insured at the time of the accident?? Do you have any paperwork from that time??

 

Just because something is on your credit report and a collection agency claims you owe it, does NOT necessarily mean that the bill is actually owed.

 

Since the accidents were NOT your fault, it is more than likely that the other person's insurance actually paid the REAL bills and what you are seeing are left over written off balances that a JDB ( junk debt buyer) has acquired from a data miner.

 

Paying a scam scum CA for a bill which you never actually owed is not only throwing $$ down a rathole, it will make your credit WORSE because the account will be marked as a "paid" collection and since it is still a derogatory but 3 years newer it will REDUCE your credit scores.

 

Follow all these steps:

http://www.whychat.5u.com/GUIDEBOOK.html

 

You will be using the HIPAA letter program

http://www.whychat.5u.com/GUIDE%20HIPAA%20PROGRAM.html

 

If you have any questions --come back to this post and we will help.

[gracej]

Why Chat, thanks so much--I feel like I just got an email from a celebrity! I did have insurance, my parents--my mom is looking for these bills as we speak, but they're almost 3 years old, it's very unlikely she'll find them. The $270 is from an ER trip after suffering a concussion in an accident (just my in my vehicle) early November 2010 and I'm 99% sure the other medical one for $145 is for an ER trip from an accident (myself and two others not in my vehicle) from late October 2010.

 

I think it mostly boils down to a bad lawyer--he said he took care of it all, but clearly didn't. He was a family friend of the driver of accident #1 ($145 bill).

 

I will thoroughly review the above links, and do my best to follow the HIPAA letter program--just wish it could happen quicker than I know it's going to! Just found out I have been declined for both the cards I applied for over the weekend, so I'm feeling very stuck.

 

I truly appreciate all the help you're giving me and everyone else on here--you are a lifesaver!

[Why Chat]

Why Chat, thanks so much--I feel like I just got an email from a celebrity! I did have insurance, my parents--my mom is looking for these bills as we speak, but they're almost 3 years old, it's very unlikely she'll find them. The $270 is from an ER trip after suffering a concussion in an accident (just my in my vehicle) early November 2010 and I'm 99% sure the other medical one for $145 is for an ER trip from an accident (myself and two others not in my vehicle) from late October 2010.

 

I think it mostly boils down to a bad lawyer--he said he took care of it all, but clearly didn't. He was a family friend of the driver of accident #1 ($145 bill).

 

I will thoroughly review the above links, and do my best to follow the HIPAA letter program--just wish it could happen quicker than I know it's going to! Just found out I have been declined for both the cards I applied for over the weekend, so I'm feeling very stuck. It won't take that long, you can get free credit reports on the basis of your declinations so you won't have to use up your free annual credit report, call each CRA and tell them you have been declined for credit ( you should get a letter from the CC Co.s providing you with that information and the phone #s

 

I truly appreciate all the help you're giving me and everyone else on here--you are a lifesaver!

[gracej]

I'll definitely grab those reports!

 

Quick question regarding the HIPAA process: I opted out, so step one is complete, and I do have old addresses, and am prepared to get them deleted, however, I don't have a DL with my current address (just moved to New Jersey from Ohio in September) and my name isn't on any bills as I have a very laid-back roommate situation--he owns the apartment, all utilities are in his name, we don't have cable. Could I possibly use a paystub? I'm able to re-print them and all since September have my current address.

[Why Chat]

I'll definitely grab those reports!

 

Quick question regarding the HIPAA process: I opted out, so step one is complete, and I do have old addresses, and am prepared to get them deleted, however, I don't have a DL with my current address (just moved to New Jersey from Ohio in September) and my name isn't on any bills as I have a very laid-back roommate situation--he owns the apartment, all utilities are in his name, we don't have cable. Could I possibly use a paystub? I'm able to re-print them and all since September have my current address.

Get an updated drivers license, you will need it anyway for other things. Yes you can use a paystub, however you should wait until you have your drivers license if you can, it is usually required by State law to have a correct State license within 90 days of your move and it has been over 6 Months. Do you have a cellphone bill??

[gracej]

I'm looking into getting a new license now. I don't have a cellphone bill as I'm still on my parent's family plan for another two years. I'm realizing how crazy this seems!

[gracej]

Update-- successfully got my two old addresses removed from TransUnion. Waiting on Equifax to confirm. I did both of those online, which now I'm realizing wasn't ideal, but it did work. I'm crafting my letter to get old addresses removed from Experian, but have to wait until Monday since I'm getting my new DL on Saturday and will make copies Monday to send to them with some bill that has my address.

 

Next step-- sending "initial HIPPAA dispute letter" to TU and EQ today, since I can confirm they did delete the old addresses. I will do this after I get EX to delete my old ones.

 

QUESTION: Do I have to send the CAs and OCs my new/current address?

[Why Chat]

Update-- successfully got my two old addresses removed from TransUnion. Waiting on Equifax to confirm. I did both of those online, which now I'm realizing wasn't ideal, but it did work. I'm crafting my letter to get old addresses removed from Experian, but have to wait until Monday since I'm getting my new DL on Saturday and will make copies Monday to send to them with some bill that has my address.

 

Next step-- sending "initial HIPPAA dispute letter" to TU and EQ today, since I can confirm they did delete the old addresses. I will do this after I get EX to delete my old ones.

 

QUESTION: Do I have to send the CAs and OCs my new/current address? ABSOLUTELY NOT!!! THAT WOULD DEFEAT THE WHOLE PURPOSE OF DELETING THE ADDRESSES!!

[gracej]

 

Update-- successfully got my two old addresses removed from TransUnion. Waiting on Equifax to confirm. I did both of those online, which now I'm realizing wasn't ideal, but it did work. I'm crafting my letter to get old addresses removed from Experian, but have to wait until Monday since I'm getting my new DL on Saturday and will make copies Monday to send to them with some bill that has my address.

 

Next step-- sending "initial HIPPAA dispute letter" to TU and EQ today, since I can confirm they did delete the old addresses. I will do this after I get EX to delete my old ones.

 

QUESTION: Do I have to send the CAs and OCs my new/current address? ABSOLUTELY NOT!!! THAT WOULD DEFEAT THE WHOLE PURPOSE OF DELETING THE ADDRESSES!!

That's what I figured--I just wanted to be sure! I will not do that, thanks for stepping in before I did something really stupid!

[Why Chat]

The ONLY time you notify anyone of your current address is IF you have a GOOD closed credit account on your reports, you would let them know of your current address in order to not lose a GOOD closed tradeline.

From your original post I would guess that you do not have any good closed tradelines.

[gracej]

I have good accounts, but they are student loans. I consolidated, so I have three closed good standing accounts, and three current good accounts (one is my LOFT credit card and the other two are my consolidated loans). The closed ones say "current, paid or paying as agreed" and are US Dept. of Education.

[Why Chat]

Make sure the servicing ( reporting) agency on your 3 closed student loan accounts has your current address

[gracej]

Okay. Just logged into their website and changed it to my current!