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CA "deletes" on paper, sells to another CA


intlschizo
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Long story short: months and months after battling a company with every agency known to man, the scumbuckets cry uncle and overnight papers saying that they've deleted their trade lines and even offer a nominal settlement. Mazel Tov.

Just hours before I'm to send the paperwork back agreeing to the terms, I pull my reports to admire all my hard work and...two of the trade lines the CA claimed they deleted last month - on paper, no less - are once again on my report. Only this time, they're under another collection agency.

Now, just to be clear, this is what is written on the letters that were overnighted to me:

"Based on the information recently provided, Scumbag Collection Services has electronically notified each of the three nationwide credit reporting agencies that the above-referenced account is to be deleted from your credit file, as maintained on each of their reporting systems."

And yet two of those same debts are on my report again, just under a different collection agency. Short and simple: was this move legal?

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Collection Agencies don’t “sell” accounts…they don’t own them so they cannot sell them.

Whoever owns the account (that may be the original creditor or a subsequent creditor, i.e. a JDB,) can sell the account to someone else or, if the CA the debt owner assigned the account to doesn’t perform, they can recall the account and assign it to another CA; that's how it usually happens.

What exactly happened in your case is difficult to say based on your post but suffice it say, every JDB and/or CA that handles the account can report to the bureaus provided they report accurately (of course, any JDB who no longer owns the account and/or CA no longer handling the account no longer has a right to report).

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They've sold it to another company, and they can do that.

Did you put it in your written communication to them that they aren't to sell it?

HELL yes. I clearly said the debts were not to be sold to another collector, nor sent back to the original collector. I even sent them paperwork SHOWING them why they were mistakes - one of the chargeoffs was for a service I was still using at the time, and had been since 2002! The interesting thing is now they've come back with a "settlement offer" telling me that they'll forgive debts that were already supposedly forgiven last month. One of the top brass even signed the papers and overnighted them himself. So which story is it?

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It would be helpful if you were more precise about "who" you have been dealing with; whether it's just A CA or the actual debt owner (it sounds as if you are dealing with just a CA).

Selling debts is a perfectly legal practice - debts are sold back and forth all day long from student loans to mortgages to junk debt. However, if you had a legally binding contract with the current debt owner in which they agreed to not re-sell a debt and then they sell it anyway, then you have may have an actionable breach of contract against that debt owner.

It's unclear to me if your "paperwork" was with the current debt owner (who is generally the only entity with the power to agree not to re-sell it) or just a CA. It is also unclear if your paperwork is an enforceable contract...if both are so then you have some recourse; if either aren't true then you don't.

It may also be that this debt hasn't been "re-sold" at all...it may be that it's simply been assigned to another CA; also quite legal without a binding contract to say otherwise.

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