Pay original creditor or collection agency?

Question

i currently have some accounts in collections for about 1year now. the collection agency states i owe more money then the original creditor states i owe. would it be better to pay the original creditor the amount they stated i owe or the collection agency amount which includes interest??

Answer 1

Usually, you are instructed to pay the collection agency and the difference in the amounts is their collection costs and interest, which you would now be responsible for, regardless of where you mailed your check.

Answer 2

By all means, you can pay the creditor the original balance, but you still owe the intrest at the collection agency.  They will still bill you for it and it will still show up on your credit report.

What you can do though, is negotiate with the collection agency to reduce or sometimes eliminate the intrest  if you pay it in full...

Collection accts are usually negotiable...  You dont know though unless you try!

Answer 3

Did you request the collection agency verify the debt?  If not, send them a letter that says, "I dispute the validity of the debt.  Please provide me with verification."

You probably don't "owe" the collection agency any interest.  Pay the original creditor and ask them to remove the item from your credit report - i.e. delete the tradeline.  Keep a copy of all payments made.