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Question about repo and sold accounts

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Anonymous
Not applicable

Question about repo and sold accounts

I had a car repo back in 2004. The original creditor sold the account to a CA. Are both the OC and the CA allowed to continue reporting on my credit for the same debt?

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1 REPLY 1
RobertEG
Legendary Contributor

Re: Question about repo and sold accounts

Yes. Credit reporting is primarily to record prior delinquencies.  Who now owns the debt is a secondary item recorded under curent account status.

FICO does not score status, it scores derogs.

If the OC sells the debt to a CA, the prior derogs on their account still remain.  What the OC must do is to update the status of the debt under their account to $0.

But their prior reporting otherwise remains.

The CA reports the amount of the debt, and the fact of their collection.

 

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