Charged off Accounts

sprizzle · ‎06-19-2014

I have a charged off account that has been sold to a collection company. The original creditor is still reporting the charged off balance as a balance owed. Is this something I can dispute with the bureaus or is it legal to have a balance owed when the company sold to a collection company?

Shogun · ‎06-19-2014

If the debt was only assigned to a CA, the OC can report a balance. If it was sold, the OC must report a $0 balance.

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sprizzle · ‎06-19-2014

Thank you! Do you just need to contact the OC or the CA to figure out if the account was assigned or sold?

Shogun · ‎06-19-2014

I'd contact the OC, see if they will call it back from the CA.

Starting Score: 504
July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge
Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.

EW800 · ‎06-19-2014

@Shogun wrote:
I'd contact the OC, see if they will call it back from the CA.

Just out of curiosity, how do we determine if it was assigned or sold? I assume that if it is sold then the OC cannot pull it back, whereas if it was assigned they can?

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gdale6 · ‎06-19-2014

@EW800 wrote:
@Shogun wrote:
I'd contact the OC, see if they will call it back from the CA.
Just out of curiosity, how do we determine if it was assigned or sold? I assume that if it is sold then the OC cannot pull it back, whereas if it was assigned they can?

Easiest way is to ask the OC how much is owed IMHO. If they say 0 then its been sold. Your correct once the OC sells the debt its out of their hands and they cannot pull anything back from a collecting agency.