Best Buy Account Charged Off....

[fishbjc]

Balance $3,000.  My sister wanted to pay the entire thing off (ho hum) so made payment arrangements to LNLV (through DMP) for 0% interest, $90 per month or so.  Both accounts are listing the Balance as $3,000 on TU.  Is this correct?   It's kind of screwing her ratio up a bit.  She's made excellent strides since the ex got sent to prison and by-bye child support.  Don't get me started on THAT!!!

[MarineVietVet]

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@fishbjc wrote:

Balance $3,000.  My sister wanted to pay the entire thing off (ho hum) so made payment arrangements to LNLV (through DMP) for 0% interest, $90 per month or so.  Both accounts are listing the Balance as $3,000 on TU.  Is this correct?   It's kind of screwing her ratio up a bit.  She's made excellent strides since the ex got sent to prison and by-bye child support.  Don't get me started on THAT!!!

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Is the CL reporting also? If not then this account is not being factored into utilization. Both the CL and balance have to report for a closed CC account to be counted into utilization.

[RobertEG]

If both are reporting the balance, that indicates that the OC still owns the debt, and the debt collector is an assigned collection agent of the OC.

Both can report the same balance.  In the case of the OC, they are reporting the balance of debt owed to them.  In the case of the debt collector, they are reporting the amount they are authorized to collect upon.  While the amounts can be the same, they are not the same thing.  It is not saying the combined debt is $6K.

As Marinevet explained, the debt balance may or may not still be counted in the % util.  If it is, then the $3K reported by the debt collector would not be scored in the % util calculation.

It would still be $3K/CL.