It is not uncommon for multiple parties to report on delinquent accounts.
It is not acutally the reporting of multiple debt.
The original creditor can report any derogs that occured on their account. Derogs are the result of a delinquent debt, and dont reflect the debt itself.
If the OC still owns the debt, they can refer to collection, and their assigned debt collector can then additionally report their collection. The reported collection does not represent that the debt collector owns the debt, but merely that they have collection authoirity to attempt its collection.
If a debt collector's agrreement with the OC is terminated, the debt collector must then report a $0 amount still under their collection, and close their collection account with the CRA. They arent required to delete it. If the OC then assigns to a new debt collector, that debt collector can also report their collection.
If the OC sells the debt, the purchaser can report their collection, and the amount under their collection also becomes the amount of debt owed to them.
The purchaser can then assign the debt to a second debt collector, who can also report. If a new debt collector reports, then debt collector 1 must report $0 under their collection, and close their collection. However, both collections can remain in the consumer's credit report.
Lots of scenarios where muiltiple acts to collect on the same debt can all simultaneosly remain in the consumer's credit report.
However, all collections become excluded from a consumer's credit report on the same date, which is 7 years plus 180 days from the date-certain DOFD on the OC account which created the debt.
