Does a collection agency notify the court when the debt is paid in full ?
Answer
If there was a judgment against the debtor, then the collection agency should sign a satisfaction of judgment. Usually, I suggest that it be provided to the debtor to file, so that the debtor would know that it's being done. If the collection agency that holds the judgment doesn't do what it is supposed to do in a reasonable time, you might first contact the collection agency and demand that it do it. If it doesn't, then you could file a motion with the court to determine that the debt has been satisfied. You would have to provide proof, though.
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