Debt collection

[Scarlett1234]

Happy 4th of July. I have a few questions hopefully someone can share their valuable insights.

1 If I want to pay off a debt that has been sold from the original creditor to the debt collector, is the only option left is to work directly with the debt collector?

2 If I contact the original creditor and tell them I want to pay off debt, will the original credit be able to get the debt back from the collector?

3 How do I protect myself and get proof after I pay it off? Will the copy of the check I will be sent to the collection agency suffice as proof if, in the future, I become haunted by this debt after I pay?

4 If I can afford to pay off this debt, is it better to pay it off in full than settle for less? It has been over 180 days past due and it is a "charge off "the credit report.

[justbroke]

1 If I want to pay off a debt that has been sold from the original creditor to the debt collector, is the only option left is to work directly with the debt collector?

If a debt is sold, then it no longer belongs to the original creditor. Your only recourse would be to work with the new owner of the debt. These are called Junk Debt Buyers (JDBs) and they do own the debt.

2 If I contact the original creditor and tell them I want to pay off debt, will the original credit be able to get the debt back from the collector?

Usually no. They usually sell the debt for pennies (less than $0.10) on the dollar to the JDB. Unless this is truly just a debt collector, there's really no way to sell it back. I don't see a creditor buying back an individual account since they sell these in large portfolios of thousands of accounts.

3 How do I protect myself and get proof after I pay it off? Will the copy of the check I will be sent to the collection agency suffice as proof if, in the future, I become haunted by this debt after I pay?

If this was related to a settlement, then you should keep the terms of the settlement as proof. There have been circumstances where a debtor settled the debt for less, but the JDB turned around and sold the remainder to another JDB.

4 If I can afford to pay off this debt, is it better to pay it off in full than settle for less? It has been over 180 days past due and it is a "charge off "the credit report.

I don't think it makes a difference. Paying in-full to a JDB is probably a significant waste of money (because they paid less than $0.10 on the dollar for that debt).