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Established Member
OnthewaytoAPlus
Posts: 24
Registered: ‎12-07-2011

Who owns the debt?

I'm taking a look at all 3 of my credit reports, and I notice that account "A" is listed on Experian under a collection agency (the original creditor is nowhere on Experian) while on Transunion account "A" is listed by the original creditor (no collection agency) with a non-zero balance. So a couple of questions...

 

1) Only one person can own the debt correct?

 

2) If the original creditor indeed sold account "A," then for the current balance it should say $0 correct? I read on a thread somewhere that seeing a $0 balance from the OC on your CR was an indication that the account has been charged off and sold, if it doesn't have $0 then it's likely they still own it. Any truth to that?

 

3)I know it's a lot better to deal with the OC, so my first step will be to send a PFD.

     A. If they agree I'll pay and it'll be deleted, but then to remove the CA that's also reporting it I would just send them documentation that the debt has been paid to OC correct? In terms of getting the CA removed is it the CA or the CRA?

     B. If they say they no longer own it, does it make any difference in my credit score that they are not reporting it correctly?

Established Member
OnthewaytoAPlus
Posts: 24
Registered: ‎12-07-2011

Re: Who owns the debt?

bump

Established Contributor
hoping2rebuild
Posts: 905
Registered: ‎07-25-2008

Re: Who owns the debt?


OnthewaytoAPlus wrote:

I'm taking a look at all 3 of my credit reports, and I notice that account "A" is listed on Experian under a collection agency (the original creditor is nowhere on Experian) while on Transunion account "A" is listed by the original creditor (no collection agency) with a non-zero balance. So a couple of questions...

 

1) Only one person can own the debt correct? Yes but you can have 1 OC and 1 CA reporting that debt

 

2) If the original creditor indeed sold account "A," then for the current balance it should say $0 correct? Yes it should be at a 0 balance

I read on a thread somewhere that seeing a $0 balance from the OC on your CR was an indication that the account has been charged off and sold, if it doesn't have $0 then it's likely they still own it. Any truth to that? Yes IME

 

3)I know it's a lot better to deal with the OC, so my first step will be to send a PFD.

     A. If they agree I'll pay and it'll be deleted, but then to remove the CA that's also reporting it I would just send them documentation that the debt has been paid to OC correct?  The OC would have to get them to delete

In terms of getting the CA removed is it the CA or the CRA?

     B. If they say they no longer own it, does it make any difference in my credit score that they are not reporting it correctly? If they still show a balance then it is most likely figuring into your Utilization


Hopefully a MOD can chime in and give you some better answers


Starting Score: 377EQ/350EX/400TU As of 11/2011
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Established Member
OnthewaytoAPlus
Posts: 24
Registered: ‎12-07-2011

Re: Who owns the debt?


hoping2rebuild wrote:

OnthewaytoAPlus wrote:

I'm taking a look at all 3 of my credit reports, and I notice that account "A" is listed on Experian under a collection agency (the original creditor is nowhere on Experian) while on Transunion account "A" is listed by the original creditor (no collection agency) with a non-zero balance. So a couple of questions...

 

1) Only one person can own the debt correct? Yes but you can have 1 OC and 1 CA reporting that debt

 

2) If the original creditor indeed sold account "A," then for the current balance it should say $0 correct? Yes it should be at a 0 balance

I read on a thread somewhere that seeing a $0 balance from the OC on your CR was an indication that the account has been charged off and sold, if it doesn't have $0 then it's likely they still own it. Any truth to that? Yes IME

 

3)I know it's a lot better to deal with the OC, so my first step will be to send a PFD.

     A. If they agree I'll pay and it'll be deleted, but then to remove the CA that's also reporting it I would just send them documentation that the debt has been paid to OC correct?  The OC would have to get them to delete

In terms of getting the CA removed is it the CA or the CRA?

     B. If they say they no longer own it, does it make any difference in my credit score that they are not reporting it correctly? If they still show a balance then it is most likely figuring into your Utilization


Hopefully a MOD can chime in and give you some better answers


 

Thanks for your reply! Good call on the utilization....I hadn't thought of that, so if they truly sold it then it would be worth the effort to get them to report it accurately as $0. I will start out by sending a PFD to OC and go from there.

Mega Contributor
RobertEG
Posts: 17,456
Registered: ‎03-19-2007

Re: Who owns the debt?

[ Edited ]

When a debt collector initiates collection activites, they are required to send you formal dunning notice within 5 days of any initial communication.  Apart from advising you of your DV rights, the dunning notice must provide you with the name of the current credtior for whom they are seeking collection of the debt.  If it is not the OC, it should be apparent from the dunning notice requirement. 

The duning notice does not require them to provide the name of the OC, but your DV rights do.  You can, under section 809(b), include in your DV letter a request for the name and address of the OC.  If specifically requested, then any debt validatiion on their part must include that information.

 

The first "clue" that the OC no longer owns the debt is when they update their reporting to show $0 due.  The debt has passed to someone else. 

Dunning notice should have advised you of who owned the debt as of the date of their dunning notice.

 

If the OC has sold the debt, they of course cannot accept payment, so you could not PFD them.  If uncertain, send them a PFD and see what they say.

Regardless of who you pay (the OC or the debt collector), if that party accepts a PFD and deletes, that fact does not compel the other party to delete their own accurate reporting. They are separate, and must be dealt with separately. 

 

 You could ask the OC to contact the debt collector and request them to also delete their reporting, but the decisin would rest with the debt collector.  An OC may not want to do that, as deletion of credit reporting on the basis of payment of the debt is contrary to their credit reporting agreements with the CRAs,  They may choose to ignore that stipulation and delete their own reporting, but may be reluctant to ask another to do the same.

Established Member
OnthewaytoAPlus
Posts: 24
Registered: ‎12-07-2011

Re: Who owns the debt?


RobertEG wrote:

When a debt collector initiates collection activites, they are required to send you formal dunning notice within 5 days of any initial communication.  Apart from advising you of your DV rights, the dunning notice must provide you with the name of the current credtior for whom they are seeking collection of the debt.  If it is not the OC, it should be apparent from the dunning notice requirement. 

The duning notice does not require them to provide the name of the OC, but your DV rights do.  You can, under section 809(b), include in your DV letter a request for the name and address of the OC.  If specifically requested, then any debt validatiion on their part must include that information.

 

The first "clue" that the OC no longer owns the debt is when they update their reporting to show $0 due.  The debt has passed to someone else. 

Dunning notice should have advised you of who owned the debt as of the date of their dunning notice. Right I read that somewhere, my issue is that the OC is reporting the debt with a non-zero balance ($481.00), while a collection agency is also listing the same account number for the same amount....separate CRs. I checked due to a previous post and that balance is indeed included in my utilization...so if they sold it then they need to correct the reporting right?

 

If the OC has sold the debt, they of course cannot accept payment, so you could not PFD them.  If uncertain, send them a PFD and see what they say.

Regardless of who you pay (the OC or the debt collector), if that party accepts a PFD and deletes, that fact does not compel the other party to delete their own accurate reporting. They are separate, and must be dealt with separately. That was my first thought to attempt to PFD the OC since it's not clear to me who owns the debt as I've never received anything from the CA. Since I admittedly know that this debt is mine, when contacting the OC will the PFD read the same as for a CA (i.e. the line "this is not a refusal to pay nor acknowledgement that the account is mine...")?

 

 You could ask the OC to contact the debt collector and request them to also delete their reporting, but the decisin would rest with the debt collector.  An OC may not want to do that, as deletion of credit reporting on the basis of payment of the debt is contrary to their credit reporting agreements with the CRAs,  They may choose to ignore that stipulation and delete their own reporting, but may be reluctant to ask another to do the same.



thanks!


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