Need advice on who is legally able to report debt

[Anonymous]

I recently paid a debt owed to an original owner of the debt, City Utilities Springfield. Apparently, Berlin Wheeler was trying to collect for them (was assigned to them 2 months ago) and they are reporting the debt on my credit reports.  My question is, since they have NOT purchased the debt, they were simply trying to collect, and the debt has now been paid to the Original owner, can Berlin Wheeler remain on my credit report, even showing the account as paid? It seems like if I were to be reported, that City Utilities would have to report it? 

[js0319]

OC's can hire attorney's offices and collection agencies to handle the collection of a debt, including the reporting of the debt. If you have paid the OC, I would dispute the accuracy of your credit report to the CRA's on the basis that the debt has been paid. 

[RobertEG]

The reporting by a debt collector is of their authority to collect on a debt, regardless of whether the collection is assigned to them or they own the debt.

The owner reports the debt, and the debt collector reports the amount of a debt they are authorized to attempt to collect.  It so so happens that if they also own the debt, their reporting reflects both.

That fact is not negated by the ultimate payment of the debt.

There is thus no inaccuracy in their reporting that would support a dispute.  They are required to close their collection and update the balance under their collection to $0.

CRA poicy, as set forth in their standard reporting manual, is that reporting of a collection should not be deleted based on payment of the debt.

Thus, requesting deletion on that basis is asking the CRAs to delete for a reason contrary to their official policy.

[0REDSOX7]

Robert, can you help to explain the below then? I do not understand.

Based on what you said. Say if I have an AmEx card that goes to collection for $5000 and NCO attempts to collect on AmEx behalf. The debt wasn't sold and still belongs to AmEx?

How should that report? If NCO adds a TL for the 5,000 then should the AmEx TL be zero? They both shouldn't say 5,000 due, should they?

This is assuming no payments made and AmEx still owns the debts.

All hypothetical, but, curious. Thanks!!

[Anonymous]

Its simple - If Amex SELLS the debt, nothing is owed to them any longer and they report a $0 balance. They are not required to delete their report.

If they ASSIGN the collection to an agency, then the money is STILL owed to them, they report the $5000 balance, and the CA that has collection authority also reports the same. Yeah, it makes it look like twice as much is owed, but thats the way it works.

[Anonymous]

Well, it took a few weeks, but I finally found a sympathetic ear!  I sent letters, offered my first born, cried, everything I could do and Berlin Wheeler finally removed the paid collection from my report!!! He specifically said they never do that, but was in the spirit of giving. That was my LAST collection - now my reports are collection free!!!!! WOOHOO! Got a 46 point jump!

[Imperfectfuture]

Nice feeling heh?

I just cleaned up TU last Friday, and exp in October.

Last baddie eq falls off beginning of January, and minding my p's and q's, everything only goes up from here.