Credit Repair

[nwschmidt]

When a account has been sold to an Collection Agency can the account be listed on your credit report twice?? Is there anything that can be done so only one is listed??

[breathing_easier]

Yes, both the OC (original creditor) and CA (collection agency/debt buyer) can list the account. However, the OC must list the account as having a $0 balance with the remarks/status as "account sold or transferred."

[lynfaber]

When it is listed as such - does this hurt you? Should it be disputed?

[breathing_easier]

lyn: Many accounts are routinely sold to other lenders (e.g. mortgage accounts) so I don't think that remark(s) alone will hurt you. The $0 balance certainly doesn't hurt you. However, it's when the OC combines it with other statements such as "Chargeoff" or "120+ Days Past Due" that it dings your FICO. I've been told that once an account is sold the OC can no longer report it as a "chargeoff" or "past due." That makes sense, as how can it be past due or a chargeoff once it is sold? However, I think the OC's stance is that it was past due or charged off at the time it was sold and so it's a legitimate tradeline. I'm trying to find where in the FDCPA it addresses this issue so that I can use it as ammo.

[lynfaber]

breathing: Thank you so much!! OMG, do you know how much time I have wasted by disputed OC's that say $0 balance, but sold or transferred to another lender. I thought those words alone were killing me. I guess I just have to fight my battles w/ the CA's and leave my OC's alone then. To make sure I have it straight. When a CA is "assigned" the debt, the OC is still allowed to legally report as 120 days late, etc. correct? And this should be disputed?

Thanks for your help.

[breathing_easier]

lyn: I'm going to let some of the other experts answer your questions about assigned accounts. My experience on my own reports has only been with OCs that have sold the accounts. I have three on different reports that sold to a debt buyer, I subsequently paid the debt buyer, but the OC is still reporting as "Past Due" and/or "Chargeoff." I have learned that this is a no-no under the FCRA and so I'm getting ready to do battle.

[nwschmidt]

When a account has been sold to an Collection Agency can the account be listed on your credit report twice?? Is there anything that can be done so only one is listed??

[mcdavis8]

Purchased a ring from a jewelry store.

They sold the loan to a nearby bank.

I quit paying on the ring and after 60 days the bank sold it back to the store.

Within 19 days I paid the store the remainder of the balance of the loan.

Issues;

The store is showing late payments during the time the bank owned the account.

Both store and bank show 30 days late during the month that I finally paid the account off in full.

Equifax has disputed each twice and they verified each time.

I called the store and they are going to remove the late payments for when they did not own the account but she also mentioned that they are adding a Charge-off for the month they bought the account back.

Requesting suggestions for approach on how to handle this with both companies please.

[Worthyofit]

mcdavis, Just came accross this site tonight and it talks about checking the method of verification. Check out this link as it may have some useful information for you, and others here as well.

http://www.creditinfocenter.com/repair/MethodOfVerification.shtml