HELP!! Collection agency out of business

[emartin82]

My CapOne charge-off was sold to Elite Recovery Services (ERS).  ERS reported to all three bureaus but is now out of business (as of 12/1/08).  They sold my account to another CA (Galaxy) in December 08. Before I knew ERS was out of business, I disputed on 1/1/08 via snail mail and they updated my reports promptly (within the last 5 days!) to show "Consumer disputes info." Looks like they are out of business but still updating the bureaus.

If I pay the new collection agency (Galaxy), do I have any grounds to dispute the Elite Recovery Services tradeline so I can have it removed? They no longer own my account and I never had the opportunity to even pay them before they reported to the bureaus.

Message Edited by emartin82 on 01-08-2009 04:15 PM

[Anonymous]

NO!     You need to send a DV  CMRRR  to ERS    if it comes back not deliverable or if they sign for it & do not answer   you go from there.

If it was sold to a new CA and they are reporting send them a DV  (if you are past SOL)  CMRRR

[Anonymous]

When you say disputed, disputed with who? The CA or CRA?

I would modify the PFD letter here to a pay for not reporting letter and send it to the new CA.

If the first CA doesn't have the account any longer, they can't report it.

[psydian]

My CapOne charge-off was also sold to Elite Recover Services (ERS), and ERS is now out of business.  With my account, they only reported to Equifax, but the original CapOne acct is shown as a charge-off on all 3 reports.  To the best of my knowledge, no new CA has my account.

I plan to send a DV to the CA and dispute the CA TL with Equifax. However, I had planned to PIF if the CA was able to validate.  My question is: If they don't respond (b/c they are out of business), and the CA TL is removed, how can I get the CapOne status changed to Settled?  or will it hurt my score to have it updated?

Date Reported (on Eq report):  11/2007

Last payment made: 06/2007

This is my first post to these forums.  Thanks in advance for your help!

[psydian]

Also, the charge-off amount listed is $512 (on a $200 credit card) and Elite has the amount $881 listed.

Thanks.

[llecs]

Is CapOne reporting a balance?

[psydian]

All three reports list it as a negative account.

Equifax has a status of "CHARGE-OFF", balance $0, and Charge Off Amount $512.

Experian lists a status of "Transferred, closed/Account charged off. $513 written off.", Recent Balance "NA", $834 as of 10/07 in Balance History.

TransUnion lists Pay Status as "Charged Off as Bad Debt", Balance $0, High Balance $512, Remark: "Purchasedby another lender"

[llecs]

CapOne sold the account.

All you can do with CapOne is to send a GW to ask for removal. It is a long shot with them, though.

[Anonymous]

I just read you post about getting your Capitol One Charge off of your Credit Bureaus after its been sold to a Collection Agency.  I Manage a Finance Company. Tell them you dont recognise the Debt and they will remove it. Once  a Bulk of Accounts is sold, the Seller should no longer be reporting. That is grounds for removal.

[RobertEG]

The deletion issue is based on the fact that the debt collector no longer has active collection authority, and not that they are no longer in business. 

CRA reporting policy, as set forth in their common credit reporting manual, is that if a debt collector has their collection authority terminated with the debt remaining unpaid, their collection should be deleted.  Termination of collection authority on an unpaid debt then frees any new debt collector from reporting a collection, and the CRA policy is to prevent simultaneous inclusion of two collections on the same debt.

Thus, they require deletion of a terminated prior collection to clear the decks for any new reporting that might occur.

Yes, if you have documentation that the former debt collector sold the debt, that terminated their collection authority, and would be basis for deletion of their reported collection.

You can attempt an informal call to the CRA, or submit a formal dispute, citing as basis their credit reporting policy and your documentation of termination of their collection authority.