Does OC get paid?

[aant]

What is the name of your state? GA
My eyes crossed trying to find the answer here - can't find it. When a debt goes to collections, like early in the process (2 - 6 months from default), does the CA send money from the debtor back to the OC? Does it depend on the type of debt (i.e. medical vs credit)?
My understanding is that later on if/when the debt is written off & sold, the OC washes its hands & all payment then goes to the CA, an "if you can get it, you can keep it" arrangement. My guess is until the write-off, the OC gets most of the $ forwarded by the CA (minus whatever the CA charges). Right?

 

[moburkes]

What is the name of your state? GA
My eyes crossed trying to find the answer here - can't find it. When a debt goes to collections, like early in the process (2 - 6 months from default), does the CA send money from the debtor back to the OC? Does it depend on the type of debt (i.e. medical vs credit)?
My understanding is that later on if/when the debt is written off & sold, the OC washes its hands & all payment then goes to the CA, an "if you can get it, you can keep it" arrangement. My guess is until the write-off, the OC gets most of the $ forwarded by the CA (minus whatever the CA charges). Right?

Probably not. The debt collector has already paid the OC for the right to go after the debtor. Why do you ask?

 

[aant]

I ask because I had a little dentist bill I couldn't pay, & now I can. I'm paying it anyway but I would have liked to see him/her (husb/wife team) get paid. Or at the very least, know that they were made aware that I paid it so I can get my teeth cleaned without being embarrassed.
So to be sure I understand - no matter what stage of the process, they'll get only what the DC has already paid them for the debt collection rights?
Thanks for clarifying.

 

[TigerD]

I ask because I had a little dentist bill I couldn't pay, & now I can. I'm paying it anyway but I would have liked to see him/her (husb/wife team) get paid. Or at the very least, know that they were made aware that I paid it so I can get my teeth cleaned without being embarrassed.
So to be sure I understand - no matter what stage of the process, they'll get only what the DC has already paid them for the debt collection rights?
Thanks for clarifying.

1. Collectors don't buy the right to collect. When an account is placed with us, the OC signs a contract promising to pay us X percent of everything we collect.
2. When a debt is sold, it is sold not licensed. The OC no long has any claim to that money. They have been paid.
3. People are under a major misconception about how frequently debts are sold. Medical debts are rarely sold -- too many privacy issues that the hospital or dentist are liable for regardless of who is collecting on it. And yes, before some internet search monkey says they found somebody selling medical debt -- the exception proves the rule.

DC

 

[aant]

I see. Too many hands passing info & thus liability for confidentiality violations. Thanks both of you for your info.