Pay original creditor, or collection agency?

[homein2007]

Hi,

I called to set up TV/internet service at my new apartment through the local telephone company (AT&T, though it doesn't really matter.) I have an outstanding balance on an AT&T Wireless account, so they won't set up the TV/internet without payment on that cellphone balance. I know through my credit report that the cellphone account has been referred to a collection agency.

If I pay off the balance to AT&T directly right now, I can proceed with the hookup of my services immediately, but I worry that I may never get the collection agency to update my credit report. If I pay the collection agency, I feel more confident that I can get the credit report updated, but I worry that it may take forever for the collection agency to inform AT&T that I am paid up.

Which should I do, pay AT&T or the collection agency?

Thanks,
Ben

[kork13]

You need to find out who actually owns the debt at this point.

If AT&T has written it off, they've sold it to the collection company and are now totally out of the loop. If this is the case, paying AT&T would be meaningless, because the money isn't owed to AT&T anymore -- collection company paid AT&T for it, now the collection guys are going to try to get it back.

If AT&T still owns the debt, that would be the easiest situation. Then yea, you can just pay AT&T and it's over with.

The complicating factor in all this is that it's apparently in collections. AT&T might have hired the collection company without selling them the debt, but I believe that is uncommon in practice.... However, the fact that AT&T thinks you still owe them the money might mean that it hasn't been written off and sold yet.

You should call AT&T, ask for their collections department (probably a part of the billing office), and you need to get positive confirmation on if it's been written off or not. If not, then you can work out a payment with AT&T and put this to bed. If it's been written off and sold to a collection agency, you need to get the name and contact info for the collection agency. Working with a collection company probably won't be easy and may take a while to get everything straightened out, but better to get it taken care of than to ignore it.

[scubatim84]

You need to find out who actually owns the debt at this point.

If AT&T has written it off, they've sold it to the collection company and are now totally out of the loop. If this is the case, paying AT&T would be meaningless, because the money isn't owed to AT&T anymore -- collection company paid AT&T for it, now the collection guys are going to try to get it back.

If AT&T still owns the debt, that would be the easiest situation. Then yea, you can just pay AT&T and it's over with.

The complicating factor in all this is that it's apparently in collections. AT&T might have hired the collection company without selling them the debt, but I believe that is uncommon in practice.... However, the fact that AT&T thinks you still owe them the money might mean that it hasn't been written off and sold yet.

You should call AT&T, ask for their collections department (probably a part of the billing office), and you need to get positive confirmation on if it's been written off or not. If not, then you can work out a payment with AT&T and put this to bed. If it's been written off and sold to a collection agency, you need to get the name and contact info for the collection agency. Working with a collection company probably won't be easy and may take a while to get everything straightened out, but better to get it taken care of than to ignore it.

After you call AT&T, depending on the outcome of that call, you may want to contact the collection agency to find out whether they do in fact own the debt or not. I don't see how AT&T can refuse to hookup the service for your debt if it was sold to a collection agency since it ceases to be their debt at that point. I'd make sure to get everything you find out in writing, if at all possible, so as to avoid the possibility of having to pay the debt twice to both parties.

[kellogg9]

Before you pay anything it is critical you call ATT and find out if they still own the debt or the collectors. Nothing worse than paying the wrong guy and then going through the hassles of recovering it or worse, paying twice.

[bjl584]

I would think that is AT&T is saying that you owe them money, then they haven't sold it to a collection agency. If they had, then they shouldn't be telling them that you owe them money. But, before paying anything do some research to find out exactly who has this debt and specifically who you owe the money to.

[97guns]

go with directv unless you owe them too