OC reporting $0 after CO

apehar24 · ‎03-17-2015

Ok. So I have a credit card from 2010 that states it was sold to CA, charge off, account closed...but yet there is a balance and past due balance. I thought once it's in CA, it should show $0 balance. Is this not correct? No, I've not paid this off as of yet and the CA is not their internal CA.

RobertEG · ‎03-18-2015

A debt collector can obtain collection authority in two different ways.

The OC can retain ownership of the debt, and merely assign a debt collector to conduct activities on their part, or the OC can sell the debt.

The fact that the OC has taken a charge-off is irrelevant to the continued efforts to collect the debt, or the current ownership.

If the debt collector is only assigned collection authority, the OC can continue to report the current amount of the debt. The debt collector also reports a balance, but it represents the amount they are authorized to collect, and is not a statement that they own the debt.

However, if the OC has sold the debt, then the OC must update their reporting to reflect a $0 debt balance now owed to them.

The debt collector reporting then reoresents both the amount they are authorized to attempt to collect and the amount of debt owed to them.

If the OC is still reporting a balance, there are two possibilities.

The first is that they did not sell the debt, and thus the debt collector is only assigned collection authority.

The second is that the OC has sold the debt, but simply failed to update their reporting to show a $0 balance.

If you are sure the OC has sold the debt, you can either call them and remind them of their obligation to have updated their reporting, or you can file a dispute of its accuracy.

Zorasmiles · ‎03-18-2015

@RobertEG wrote:
A debt collector can obtain collection authority in two different ways.
The OC can retain ownership of the debt, and merely assign a debt collector to conduct activities on their part, or the OC can sell the debt.
The fact that the OC has taken a charge-off is irrelevant to the continued efforts to collect the debt, or the current ownership.

If the debt collector is only assigned collection authority, the OC can continue to report the current amount of the debt. The debt collector also reports a balance, but it represents the amount they are authorized to collect, and is not a statement that they own the debt.

However, if the OC has sold the debt, then the OC must update their reporting to reflect a $0 debt balance now owed to them.
The debt collector reporting then reoresents both the amount they are authorized to attempt to collect and the amount of debt owed to them.

If the OC is still reporting a balance, there are two possibilities.
The first is that they did not sell the debt, and thus the debt collector is only assigned collection authority.
The second is that the OC has sold the debt, but simply failed to update their reporting to show a $0 balance.
If you are sure the OC has sold the debt, you can either call them and remind them of their obligation to have updated their reporting, or you can file a dispute of its accuracy.

Accurate, excellent and detailed reply! I'm in agreement with RobertEG in regards to the possibilities of your situation.

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apehar24 · ‎03-18-2015

Thanks for the reply.