topic Re: Finding out when a collection agency bought a bad debt? in Bankruptcy

Finding out when a collection agency bought a bad debt?

fuzzybean — Wed, 03 Oct 2012 14:15:57 GMT

I'm asking because something that was included in our bankruptcy was supposedly sold to Sherman Financial. So, the CC company is saying the debt was sold and that they can in fact leave it as a charge off on our credit reports. Apparently, Sherman has a history of buying bad debt AFTER bankruptcy has been filed or even discharged. Do I contact the CC company and ask them? Or, do I contact Sherman Financial and ask them? I would be afraid of opening a can of worms if I contacted the CA.

Re: Finding out when a collection agency bought a bad debt?

llecs — Wed, 03 Oct 2012 14:24:36 GMT

Look for the "open date" on your CR. When a CA reports that date it generally means that is when they took over.

Re: Finding out when a collection agency bought a bad debt?

fuzzybean — Wed, 03 Oct 2012 14:34:00 GMT

The CA isn't on my CR and never has been.

Re: Finding out when a collection agency bought a bad debt?

llecs — Wed, 03 Oct 2012 14:36:03 GMT

Could it be past the 7-7.5 year CRTP?

Re: Finding out when a collection agency bought a bad debt?

fuzzybean — Wed, 03 Oct 2012 14:48:52 GMT

No, it was included in our bankruptcy but they are claiming they sold the debt. I need to find out when so I know if it was before or after we filed for BK. If it was sold before, I'm not sure what I can do about it. If it was sold after, I assume that's wrong and should be corrected somehow.

Re: Finding out when a collection agency bought a bad debt?

fuzzybean — Wed, 03 Oct 2012 14:49:51 GMT

llecs wrote:
Could it be past the 7-7.5 year CRTP?

What is CRTP?

Re: Finding out when a collection agency bought a bad debt?

fuzzybean — Wed, 03 Oct 2012 17:52:31 GMT

I just called and found out the date and I'm so upset. It was sold a few months before the bankruptcy but we never knew. Heck , we didn't know until yesterday.

So, we have this credit card company that was included in our bankruptcy but because they sold it prior (unbeknownst to us) they are allowed to show it as a charge off. I find this so wrong. If they were included, then they should be showing that way even if they did sell the account.

Does anyone have any suggestions? Do I have anything to stand on at this point? Besides the BK it's the only bad thing left. It's not due to fall off until the middle of 2014. :smileysad:

Re: Finding out when a collection agency bought a bad debt?

llecs — Wed, 03 Oct 2012 19:12:50 GMT

fuzzybean wrote:
llecs wrote:
Could it be past the 7-7.5 year CRTP?
What is CRTP?

This may be a non-issue. By law, per the Fair Credit Reporting Act (FCRA), certain baddies can only report for a finite period of time. Generally it's 7 to 7.5 years from the Date of First Delinquency (DOFD) of the debt. DOFD is the date you first went late and never ever recovered again. So, if you have a CC that went bad in early 2005, then before the year is over, it either has to be deleted or the lates and neg. comments removed. If any collection agency reports that debt, or bought the debt, they too must disappear by this year if the DOFD was in 2005. It doesn't matter if they bought the debt yesterday, the 7-7.5 years applies from the DOFD and it must go away.

I noticed in your siggy that your BK was discharged in 2007. When did you file? If the default with the CC company was prior to 3/2005 (7.5 yrs ago), then the CA can't report anyway. It would be too old to report and they can't do anything.

Re: Finding out when a collection agency bought a bad debt?

fuzzybean — Wed, 03 Oct 2012 19:35:28 GMT

llecs wrote:
fuzzybean wrote:
llecs wrote:
Could it be past the 7-7.5 year CRTP?
What is CRTP?

This may be a non-issue. By law, per the Fair Credit Reporting Act (FCRA), certain baddies can only report for a finite period of time. Generally it's 7 to 7.5 years from the Date of First Delinquency (DOFD) of the debt. DOFD is the date you first went late and never ever recovered again. So, if you have a CC that went bad in early 2005, then before the year is over, it either has to be deleted or the lates and neg. comments removed. If any collection agency reports that debt, or bought the debt, they too must disappear by this year if the DOFD was in 2005. It doesn't matter if they bought the debt yesterday, the 7-7.5 years applies from the DOFD and it must go away.

I noticed in your siggy that your BK was discharged in 2007. When did you file? If the default with the CC company was prior to 3/2005 (7.5 yrs ago), then the CA can't report anyway. It would be too old to report and they can't do anything.

I just meant what do the letters stand for? :smileywink:

We filed in August 2007 but it was sold in April 2007. It says this in the comment box for Equifax:

LAST REPORTED DELINQUENCIES: 01/2007=R5,12/2006=R5,11/2006=R4 CHARGED OFF ACCOUNT ACCOUNT TRANSFERRED OR SOLD

Re: Finding out when a collection agency bought a bad debt?

llecs — Wed, 03 Oct 2012 20:27:57 GMT

Credit Reporting Time Period.

When was the DOFD?

Re: Finding out when a collection agency bought a bad debt?

fuzzybean — Wed, 03 Oct 2012 21:31:10 GMT

Ah, thank you! I learn something new every day on here!

DOFD = Date of First Delinquency

Re: Finding out when a collection agency bought a bad debt?

Unique620 — Mon, 22 Oct 2012 23:27:17 GMT

I was told the same thing by HSBC last week! I filed bankruptcy in April 2011 and noticed HSBC was reporting my account as bad and in collections. they put it was sold to Calvary. I called the collection agency and they told me it was sent back Hsbc, due to they could not collect on a item included in bankruptcy. I never got anything from collection agency nor did they ever report anything to credit report agency's. I called HSBC and they tried to give me the run around. they actually tried to tell me the account was charged off a month before my bankruptcy was filed and I still owed. I called my bankruptcy lawyer and he told me regardless of when they sold the account the original opener of the account is listed whether it was charged off or sold, that legally no one can come after me for the discharged debt. I called HSBC and they apologized to me and stated they would fix it after me letting them know they are violating the law by reporting me incorrectly. I am waiting for it to clear off my credit report. That should give me a great amount of increase in score :)