Robert....can you help my sister?

[fishbjc]

Robert.....about four years ago, my sister defaulted on a Best Buy Account for $4,000.  She did, however, pay LVNV about $2,000 in payments until she was unable to continue.

They are on one credit report, Equifax.  Fast forward to July 6th.  She received a letter from Stenger & Stenger from MI.  They have 'purchased' the account from LVNV. They are part of the Sherman companies, which I believe is also associated with LVNV.

She is in a much better position again to make payments. 

1)  What is the possibility that LVNV will remove this entry from Equifax since they no longer 'own' this account?

2)  What is the possibility of a settlement with Stenger & Stenger?

Thanks for your guidance and recommendations.

[RobertEG]

While there is no statutory requirement that debt collector 1 delete their reported collection when they sell the debt, it is clearly a policy of the CRAs that they do so.

It is a reporting instruction in their credit reporting manual.  Thus, you can file a dispute with the CRA, along with showing that they no longer own the debt, and have it deleted.

As for settlement with the new owner, the first issue is whether the debt is still within SOL.

Having entered into a payment plan, that most likely reset the SOL to the date that she first defaulted on that plan.

Their willingness to accept less than the full debt thus may be less if they are willing to bring legal action and seek a judgment for the full amount.

I would first send a settlement offer and give it a try......

However, if not having a collection on her credit report is more of a concern than saving $$ in a settlement, she may want to offer close to the full amount as incentive for their agreement not to report their collection.