OC accounts themselves are not subject to credit report exclusion. Only derogs reported under the account become excluded based on their individual credit report exclusion dates. Any charge-off reported under the OC account would become excluded no later than 7 years plus 180 days from the reported DOFD, and any monthly delinquencies reported by the OC would become excluded no later than 7 years from their date of occurence.
Since the OC sold the debt, they were required to have updated their reporting to show $0 debt balance owed to them. They are then finished with their required reporting.
Once the derogs become excluded, the account would remain, and show $0 balance, sold to another.
The new owner is then reporting a collection. By definition, a collection is considered an adverse item of information in and of itself, and thus becomes excluded in its entirely from your credit report no later than 7 years plus 180 days from the DOFD on the OC account.
Thereafter, the OC account could remain, with no indication of the ultimate status of the sold debt.
That could result in questions being asked when you app for new credit, as your CR would no longer show the collection, and thus status of the debt as having been paid or remaining unpaid.
