Re: REPOST - Can a CA still remain on your CR if you pay the OC???

Posted by MCM bait (66.149.179.202) on March 16, 2004 at 23:32:09:

In Reply to: Re: REPOST - Can a CA still remain on your CR if you pay the OC??? posted by Credit505 on March 16, 2004 at 23:20:02:

I don't think this is something you can force them to do.

But when the OC assigns an account to the CA, they have a contract stating that the OC gets so much, and the CA gets so much of whatever is collected. If the OC doesn't sever that contract, then even if you pay the OC, the CA gets a percentage of it per the contract whether they actually collected the money or not.

I understand the concept that the CA is collecting on behalf of the OC and is therefore entitled to a cut for their "collection activities". How that's extrapolated into giving the CA the right to consider its part as "paid" on your credit report, however, eludes me. I've just seen it operate on several credit reports, whether that is correct or not. I haven't had anyone show me that it isn't correct, so perhaps you have a point.

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