07-18-2013 01:13 AM
I have an old charge off from 2008 that recently changed to having an open balance by a (factoring company account debt buyer. I saw this when i got an alert from my equifax account. from what i understand once it is charged off and the balance would be zero. How can this company change it to an open balance of which is affecting my credit to debt ratio, and is what they are doing legal? Please advise. thanks
07-18-2013 06:28 AM
When an account is charged off by the OC, and they sell the debt, only the OC account has to show a 0 balance. The CA collecting will show open and a balance. All CA accounts are open accounts.
If the OC just assigned the debt, then both the CA and the OC TLs would show a balance.
The CA account should not factor into your utilization, where the OC TL would, if they showed a balance. If it is 0 it doesn't.