Sold collection, but...UPDATE

Anonymous · ‎01-04-2017

I have an old Credit One account that was sold to LVNV funding. Credit One account was sold 2 years ago and has had 0 balance ever since. LVNV did a PFD so I paid them back in August or September of 2016. I just noticed on my report that Credit One updated the old account to "Failed Pay" in September even though they sold it years ago. Is that allowed? It was almost like when LVNV was paid and removed their reporting that Credit One came back in to ding it one last time.

I am pretty sure Credit One and LVNV are either the same company, or LVNV is their internal collections because when I requested LVNV to verify the debt, they had every single detail and every original bill from Credit One. I went ahead with the PFD. Right about when LVNV came off, the Credit One account updated to the "FP" on my report.

I would like to dispute it if that is something they are not allowed to do. It shows as "FP" as of January 2015 then no activity or reporting at all until they updated it again September 2016 to FP.

Thanks in advance for any help and info!

*UPDATE* 1/5/17 Credit One came back and updated the account AGAIN as a charge off as of 1/17 - I am sick. My score dropped 19 points because they updated the account again as a current charge off. How is this even legal?? I am going to try to contact Credit One directly to see if anyone can help me at all. All that work feels totally down the drain right now. We were hoping as soon as credit card statements update this month that we would be able to finish our mortgage.

Anonymous · ‎01-04-2017

I've worked for an attorney that collected for LVNV funding, they aren't the same company and are a debt buyer. You should file a dispute to each CB that the information is incorrect, send in any supporting documentation that you have, and a personal statement of what happened, such as when you paid etc so they can cross reference it. If it can't be verified then it should be deleted from your credit, if the company comes back saying it's still valid they'll need to have some support to count against what you sent in.

momx5 wrote:

I have an old Credit One account that was sold to LVNV funding. Credit One account was sold 2 years ago and has had 0 balance ever since. LVNV did a PFD so I paid them back in August or September of 2016. I just noticed on my report that Credit One updated the old account to "Failed Pay" in September even though they sold it years ago. Is that allowed? It was almost like when LVNV was paid and removed their reporting that Credit One came back in to ding it one last time.

I am pretty sure Credit One and LVNV are either the same company, or LVNV is their internal collections because when I requested LVNV to verify the debt, they had every single detail and every original bill from Credit One. I went ahead with the PFD. Right about when LVNV came off, the Credit One account updated to the "FP" on my report.

I would like to dispute it if that is something they are not allowed to do. It shows as "FP" as of January 2015 then no activity or reporting at all until they updated it again September 2016 to FP.

Thanks in advance for any help and info!

RobertEG · ‎01-04-2017

When a creditor sells a bad debt, the status thereafter remains the level of account delinquency as of the date of their sale of the debt.

The debt balance owed to them must be update to $0.

Update of closed, terminated accounts when the "update" is simply repetition of current status is contrary to instructions in the CRA reporting manual to discontinue such "updates." I would file a dispute of such reporting as not being in compliance with CRA reporting policy.

Anonymous · ‎01-04-2017

Thanks for that info Harleygirl! I did dispute it this afternoon so I guess we will see what happens next. I will gather what I do have together in case I need it.

Anonymous · ‎01-04-2017

Hi Robert,

That is what I would have thought as well, but when I called Experian this afternoon the rep who took the call was being super difficult to deal with. I asked him if he would please have Credit One verify the information on the account because they came back and updated the status after it had been sold almost 2 years ago. He got snippy with me and kept telling me the creditor has the right to leave the account on the report for 7 years. I told him I understand that and I'm not questioning that, but that I was simply asking how an account can be updated with a new status after it has been sold and they no longer even own the account. He did not understand what I was saying and kept telling me there was nothing I could do. Then he put me on hold until I finally had to hang up because I was at work making the phone call. I called back after work and spoke to a much nicer guy who submitted the dispute for me. If that doesn't work I will have to send in the information showing it had already been sold and hopefully that will get it completely removed.

Thanks for the info! Crossing my fingers! We are 2 points away from being able to finish our first mortgage. Its been a long road of credit recovery for us, but this forum has been so much help!

@RobertEG wrote:
When a creditor sells a bad debt, the status thereafter remains the level of account delinquency as of the date of their sale of the debt.
The debt balance owed to them must be update to $0.

Update of closed, terminated accounts when the "update" is simply repetition of current status is contrary to instructions in the CRA reporting manual to discontinue such "updates." I would file a dispute of such reporting as not being in compliance with CRA reporting policy.

Anonymous · ‎05-04-2017

I was curious of the outcome of your situation above. I am in a similar situation and would love to know how your dispute worked out. Thanks!

Anonymous · ‎05-04-2017

I was able to settle for a small amount with LVNV then I was able to get the account deleted through the credit bureau because LVNV had said they would delete once it was paid but then they didn't. It was only reporting to one bureau so I disputed with them and it was removed. Probably because LVNV didn't bother with an update once they had gotten paid. I then contacted credit one through good will letter and they deleted the original collection. Credit one was great to work with actually.