Who Owns My Debt? & Avoiding Reactivation

[Credit_Apprentice]

Hello Friends,

I'm in the process of rebuilding my credit and opening a few secured CC's. I've banked with Wells Fargo for over 15 years and I still have my primary savings and checking with them. I'd like to open a Wells Fargo secured card, but I don't want to reactivate an old debt I may have with Wells. I had a line of credit with them which I defaulted on in 2010. It went into collections and since has been sold twice according to one CR. Another CR says the collection agency was "hired". Do these terms "Sold" and "Hired" mean the same thing? Or might Wells still own the debt and they just hired an outside collection agency? How can I find out without reactivating the debt? If the debt has in fact been sold to a collection agency does Wells Fargo have any kind of relationship with that old debt? If I get a Wells Fargo secured CC will that reactivate the debt some how?

My initial default date was May 2010, they charged off my account in February of 2011, but then Wells' internal collections garnished my checking account for $700+ in September 2011. Can they legally garnish my account after they charged off the debt? Do I have to avoid original creditors for 7 years even if the debt has been sold off?

Any help would be appreciated. Thank you in advance!

[guiness56]

It is a little confusing from what you have posted.

Hired means they only assigned the debt and still own it.

Sold means they sold it to the CA.  This would mean WF has no interest in the debt any longer and they themselves cannot collect. 

Not sure what you mean by reactivate it.  It doesn't stop being a debt until it is paid and collection activity can continue until then.

Are you saying they actually garnished your account as in levied?  No, not without a judgment first.

Or did they take the money owed for the line of credit out of your account after the debt was CO'd?  If this is the case that would probably depend on the contract/agreement with them when you got the line of credit.

[Credit_Apprentice]

Hi and thank you for your prompt response.

Yes, it is the inconsistencies between CR's that make this hard to understand who owns the debt. The Wells trade line on each CR says it was sold, but the collection agency lists themseleves as being hired. The CA lists it as a Factoring Company Account. What does that mean? My goal is to let the debt age off my report (I understand this wont erase the debt). I want to open a Wells secured CC so long as doing so won't reactivate the 7 year clock for age off.

Wells' internal collection department took the $700+ from my Wells checking and threatened to continue to do so. There was no judgement. They said they could do it because it was all internal.

Thanks again for your help.

[guiness56]

A true factoring company is someone who buys accounts in good standing.  This is a way for the other company to see money quickly and the factoring company becomes the creditor.

In debt collections this has become a norm.  They call themselves factoring companies but because they bought already delinquent accounts, they are still a debt buyer/collection agency.

They are recognized as a CA by the FTC and everyone else.  It is just a ploy on their part to try to skirt the FDCPA but it doesn't work.