How to pay a collections debt

[Derrick12]

I live in Illinois.

I am hoping someone can help me with this.

- I received a collections notice of the amount of $217.44 from Transworld Systems Inc. (collections company) - for a previous FedEx invoice (original creditor) that I did not pay. Long story short, I never got the invoice they claimed they sent me back in February.

-After I called Fedex, I realized this is a legitmate invoice and I need to pay it. But the Fedex invoice amount is $190

- I called several times and asked diferent representatives who do I need to pay - for example, did they forfeit my debt over to the collections company? But the representatives were confused and did not know the answer. They just said that they see an open invoice in their system and can collect the payment of $190. I asked them about the additional amount that the collections agency is charging, and they were confused about this and did not see this amount.

- I was going to call Transworld Systems but from what I read online, people says that you should never call collections. I'm confused on if I pay Fedex directly, will this remove the total amount from Transworld systems and will the debt be resolved?

- Also, I do not mind paying the $217.44 if I have to. My concern is more about my credit report.

- I have two questions -

(1) I'm not sure if I should pay the original creditor or collections since I do not know if the original creditor forfeited the debt?

(2) And how should I get this removed from my credit report?

Thanks in advance for all the help!

 

[quincy]

I live in Illinois.

I am hoping someone can help me with this.

- I received a collections notice of the amount of $217.44 from Transworld Systems Inc. (collections company) - for a previous FedEx invoice (original creditor) that I did not pay. Long story short, I never got the invoice they claimed they sent me back in February.

-After I called Fedex, I realized this is a legitmate invoice and I need to pay it. But the Fedex invoice amount is $190

- I called several times and asked diferent representatives who do I need to pay - for example, did they forfeit my debt over to the collections company? But the representatives were confused and did not know the answer. They just said that they see an open invoice in their system and can collect the payment of $190. I asked them about the additional amount that the collections agency is charging, and they were confused about this and did not see this amount.

- I was going to call Transworld Systems but from what I read online, people says that you should never call collections. I'm confused on if I pay Fedex directly, will this remove the total amount from Transworld systems and will the debt be resolved?

- Also, I do not mind paying the $217.44 if I have to. My concern is more about my credit report.

- I have two questions -

(1) I'm not sure if I should pay the original creditor or collections since I do not know if the original creditor forfeited the debt?

(2) And how should I get this removed from my credit report?

Thanks in advance for all the help!

To answer your last question first, you cannot remove a legitimate debt from your credit reports. The debt will remain on these reports for seven years from the date of first default. Judgments obtained in efforts to collect on unpaid debts will not (or should not) be reported.

You can call either or both the original creditor and the collection agency for information on the debt amount.

 

[Derrick12]

To answer your last question first, you cannot remove a legitimate debt from your credit reports. The debt will remain on these reports for seven years from the date of first default. Judgments obtained in efforts to collect on unpaid debts will not (or should not) be reported.

You can call either or both the original creditor and the collection agency for information on the debt amount.

Thanks so much again Quincy for all the help! I'm not getting helpful information from the original creditor if they forfeited the debt and the additional amount charged from the collections company. And I read online that you should never call the collections company because then they will start calling you back many times and start harassing you?

 

[Zigner]

And I read online that you should never call the collections company because then they will start calling you back many times and start harassing you?

They stop once you pay.

 

[quincy]

Thanks so much again Quincy for all the help! I'm not getting helpful information from the original creditor if they forfeited the debt and the additional amount charged from the collections company. And I read online that you should never call the collections company because then they will start calling you back many times and start harassing you?

Derrick, you can call the debt collection agency to ask about the amount of the debt and follow up the phone call with a letter asking for debt verification and a detailed accounting of the amount owed.

DO NOT tell the debt collector that you have money to pay the full amount demanded. You later might want to dispute the amount or settle the debt for less than you owe later. Do not discuss anything more than wanting a full accounting of what you owe.

 

[Derrick12]

They stop once you pay.

Thanks so much for your help and advice Zigner! I'm still confused by one thing - who should I pay? Its hard to know when I call Fedex if they forfeited the debt because the representatives only see an open invoice. What would you do - pay Fedex or pay the Collection agency?

 

[Derrick12]

Derrick, you can call the debt collection agency to ask about the amount of the debt and follow up the phone call with a letter asking for debt verification and a detailed accounting of the amount owed.

DO NOT tell the debt collector that you have money to pay the full amount demanded. You later might want to dispute the amount or settle the debt for less than you owe later. Do not discuss anything more than wanting a full accounting of what you owe.

Thanks Quincy again! What about this thing I'm reading about Payment for Delete Letter request? Does that work to remove it off your credit report?

 

[quincy]

Thanks Quincy again! What about this thing I'm reading about Payment for Delete Letter request? Does that work to remove it off your credit report?

The credit reporting agencies do not have to delete legitimate debts that have been reported.

 

[Derrick12]

The credit reporting agencies do not have to delete legitimate debts that have been reported.

I just got off the phone with the collection agency. They said that I have to pay them because even if I pay fedex $190, they still have their service charge that will still be in their system showing as unpaid. Should I go ahead and just pay the collection agency?

 

[quincy]

I just got off the phone with the collection agency. They said that I have to pay them because even if I pay fedex $190, they still have their service charge that will still be in their system showing as unpaid. Should I go ahead and just pay the collection agency?

You could pay them the amount they have demanded. Or you could try to negotiate a lower amount. I think I would want verification first that the collection agency actually holds the debt - but you should do whatever you find is best for you.

As an additional note on the pay-to-deletes: There is no good reason to pay this fee to a collection agency. For one thing, the collection agency might not offer these paid-deletions - under the law, they must only report legitimate debts, which cannot be removed. And the original creditor account history showing late payments will remain on the credit reports. Paid collection accounts do not (or should not) affect credit scores.