Quick question about OC still reporting balances...

[Anonymous]

First of all~~thank YOU to everyone in this forum!  I have successfully GW several accounts off of mine & my husbands credit.  We were amazed it worked

My question--I have 2 accounts on my report that are credit card charge offs.  One I currently have payment arrangements and I am paying the collection agency.  Should that balance from the original creditor still be reported, or should it be reported as a zero balance with chargeoff? I am trying to make arrangements to get these paid & off as quickly as possible...but want to know the best way to do it.  Thanks in advance!

[Anonymous]

They will report a balance until paid off then they should report a zero balance.

[RobertEG]

The taking of a charge-off does not effect the continued obligation by the consumer for the entire debt.

It does not result in any requirement to thereafter report a $0 balance.

Assignment of collection authority to a debt collector does not transfer the debt to the debt collector, it only provides for their collection assistance.

Thus, the creditor can continue to report the debt balance when they assign collection authority.  The debt collector than can also report that same amount, but it represents the debt owned by another that they are authorized to attempt to collect.

The OC is only required to update to $0 if they sell the debt or if the debt is discharged.