Is there a legal provision giving me the right to pay the original creditor rather than a collection agency?

Question

I specifically asked the creditor if it would be alright but they asked me to continue paying the collection agency, they weren't clear about whether that is required and something I don't have the right to challenge or was simply a request, and I'd like to know more about the subject before pursuing the matter further with them. Will provide more information if this is unclear or there is more to consider.

Answer 1

you can still pay the original creditor. make sure you have the original account number and the proper address to send it to. enclose a letter with the payment telling them what account it is for and include things like original date of service.. things that are relevant. ask for a receipt and make and keep a photo copy of the check or money order you are sending as well as any correspondence you send.

the reason collection agencies do not want you to do that is that they lose their cut if you pay the original creditor. the original creditor may want you to continue to pay the collection agency as they might have already paid a fee to them but you can pay the original creditor

Answer 2

Once the collection agency has bought your debt, you are now obligated to them.  

Answer 3

Not really. Technically the collection agency "BOUGHT" your debt and is now entitled to payment

Answer 4

It really all depends on the agreement that is set between the creditor and collection agency. Once a creditor turns your account over to collections they lose a percentage of the gross amount of the debt. The collection agency in most cases will divide the total amount of your payment to whatever contract rate they have established with the creditor. So if you pay the creditor directly, they will in some cases deposit the payment and report the payment to the collection agency.  Then they send the agency a check at the end of the month. So your not off the hook with the agency.

Answer 5

You can certainly tender payment to the creditor.  Whether or not the creditor accepts it, you can tell the collection agency that it was done, and they are out of the loop: you will have no further dealings with them.

Answer 6

No they have sold the debt to the collector so they no longer own it and will not accept payment.The debt belongs to the collection agency.

Answer 7

There are a couple 'credit' sites that preach you can insist on dealing only with the original creditor.  They have a very convoluted reason for this which includes some ridiculous claims.  But this is absolutely wrong.

The original creditor typically charges off the account and either assigns or, more likely sells, the debt to the collection agency.  You have to deal with the collection agency.  

In your case, the original creditor has already told you  to pay the collection agency.  Seems perfectly clear to me.  There's nothing for you to challenge.  

Answer 8

The law is you should be sent a reminder from the creditor,and you have 21 days to pay,and then it is sent to a collection agency.