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collections problem


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Ok my experian credit report say i have a balance of $1200 for Bank of America, but it also says transferred or sold to another lender. i have a collection from calvary portfolio for a little less than $1200 which the original creditor is bank of america. Shouldnt the balance be 0 for Bank of America since they sold or transfered the account to a collection?

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Thank you for editing your post. I found this answer while looking at another board and have posted the link below. Hope this answers your question.

There are rules to who can post an account, depending on if it is sold or assigned.

Original creditor is allowed to post at all time, until the 7 years are up, collection agencies are different.

If assigned then collection agency and creditor can report the balance owed, however if the original creditor re-tracks the collection - then the collection agency is obligated to remove their listing. And any new collection agencies assigned then picks up reporting.

If sold then the original creditor is obligated to report 'zero balance / sold' and the new collection agency takes over reporting balance.

Same thing holds true if a collection agency assigns a debt then CA1 & CA2 can report balance... and if re-tracked then CA2 would be removed...

If collection agency sells then CA1 is obligated like the original creditor report zero balance / sold and the new collection agency picks up reporting...

So if multiple collection agencies have bought the account, then you could have multiple listings. But NONE of the collection agencies are allowed to report beyond the initial 7 years of the original creditor.



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