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Can OC Change account from charge off to open?


cali11
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Had an accout with GEMB/BRANDSOURCE the DOFD was 9-2005.So this account was sold to Arrow and they had a $6,000 ballance against it.I sent a DV leter to Arrow and disputed it with the CRAs,I also disputed GEMB/BRANDSOUR with the CRAs.Arrow was delted with all 3 CRAs and was still being disputed with GEMB/BRAND SOURCE.Arrow was reporting it as an open account and GEMB was reporting it as a "Charge off sold".Well today EQ reports it as 120+ DAYS PAST DUE and my Vanity score went from 647 to 570.Where it said charge off before it now says 120 plus day late/Its no longer a charge off.If they sold the account to Arrow,how can they be reporitng it?Also if they charged it off,is it legal for them to open the account up again?This really sucks!

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By them changeing it from charge off, to 120 plus days late,it really hurt my vanity score.Not sure what it did to my fico as it was a 650 before this.Ive had some luck on a few things,but have done more harm that good by disputing some of these.Im bummed.

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By them changeing it from charge off, to 120 plus days late,it really hurt my vanity score.Not sure what it did to my fico as it was a 650 before this.Ive had some luck on a few things,but have done more harm that good by disputing some of these.Im bummed.

Did GEMB's entry specifically state "sold" or did it simply state "charge off"?

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The OC can report even if they sell the account. If an OC charges off an account, even if they send it to collections, they can still report and update.

BUT, if they did sell it, they're entry can remain on your credit report, but it should show a -0- balance.

I would dispute the account with the credit reporting agencies as being sold. If it comes back verified, contact GEMB and ask them what's going on. Find out if it has, indeed, been sold.

Take heart. Since the date of first delinquency was 9/2005, the account should fall off your CR in the next year to year and a half.

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The term "charge-off" is an accounting term used by creditors, meaning that a creditor has transferred an account from its "accounts receivable" books to its "bad debt" ledger. Credit card issuers are required to do this by the federal Office of the Comptroller of Currency, in an attempt to prevent banks from inflating future earnings statements with old and defaulted accounts.

If there is a law that says the OC can report after they sell the account and list it as 120 days late show it to me. Once it has been charged off and sold it has to be reported as such.

Read the FCRA section 623.

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I already disputed it, and that was there pay back!What there doing is making it look like a new account thats 120 days late.I already took the hit of being 120 days late on this account 6 years ago.Can they really hit again with another 120 days late, 6 years later?

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Sometimes, when confronted with an informed consumer, a JDB will "sell" an account back to the OC. Its also possible that the "sold to another lender" notation was in error.

You need to write to GEMB and ask if they still own the account...

I didn't know a JDB could sell an account back to the OC. If a JDB purchases defaulted debts in a portfolio of numerous debt, how does that work?

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Depends on the OC and the T&Cs of the "sales" contract....and, not all debts are sold in bulk. There are some onesy / twosy deals made.

Charge off has nothing to do with "sold". A debt can be COed without being sold. And, if its sold for the full balance owed, it can be sold without being COed.

But...chances are...the "sold to another lender" notation was erroneous. They probably just gave it to a CA to do the hassling, and the CA gave it back.

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OCs can do stupid things, too. I remember the first instance I had in dealing with collections issues. At the time I lived in New Jersey. I subscribed to the New York Times newspaper (this was long before the internet) to be delivered to my apartment. They did a terrible job of delivery, and after a couple dozen calls to try to get it corrected, and listening to excuse after excuse, I told them to cancel. The said they could not do that with no explanation why. So I just quit paying. Over the next couple months I got about 8 papers. The bills said past due and I still didn't pay. Finally, it all stopped. Then I got a collections department bill. Still I refused to pay and ignored it. Then I moved out of state. A couple months after that I got a collections letter from a CA. I ignored that, too. Finally I got a new bill from the New York Times itself. It had a zero past due balance, and new billing for yet another month of probably non-delivery to an apartment I no longer lived at. They resumed my subscription because the account was now in zero balance, having been sold to a debt buyer. I finally sent them a letter that did nothing by tell them how stupid they were over about 5 paragraphs. Never heard from them again. I actually first checked my CR about 3 years later and none of that was on there.

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