is this consider double accounts

[beehive]

Okay....I am know getting a little braver in posting. I am really trying to payoff f collections and start being accountable for my negative accounts. One thing that confuses me is the "double" reporting of a collection. Or is it double reporting?.

I have  a collection from Tribute Mastercard and it reports from 2 0f the 3 bureaus (together)...and then I see it again, reported from just transunion. It's on the same credit report, but it's not reporting all together. If that makes any sense. Is that normal. Should I ignore activity like that.

Another is ...both the creditor and CA are reporting the same account/collection. Is that also something that is correct.

And lastly....The creditor sent a letter saying they no longer own the account and gave me the CA information, but I don't see them on my CR....but I do see the creditor.

Thank you all for helping me see the light!

[RobertEG]

Hi beehive!

I dont see anything improper from what you have said.  It is not double reporting, it appears to be legitimate reportng....

Here is the normal bad account scenario, as an example of what is proper.

First, you open an account with an original creditor (OC)

You then have monthly delinquencies with the OC, which start at 30-days late, then escalate to 60/90+ days late.

They can report each and every montly delinquency to the CRAs, and probably will, so you then have mounting montly delinquencies with the OC.

The OC then chooses, at their option, to do one of several things:

1. they can just let the delinquencies continue to escalate, and keep the account open..... HIGHLY unlikely

2. they can simply close the account, which elimates all further credit limit or usage on the account, also an unlikely action on their part

3. they can close the account, and write off the existing bad debt from their accounting assets, and thus receive a tax writeoff with the IRS.

They can then post this charge off (CO) as a legitimate credit reporting to any CRA of their choosing.

4. regrardless of whether the OC did a prior charge off, they can legimately post the account wiith a third party collection agency.  This is as further business loss on their part. If they merely contract with a CA for their collection of the bad debt, they contract to pay them a fee.  If they contract with the CA for sale of the debt, the CA then owns it, and the OC is out of the picture. 

Either way, by assignment of collection or sale of the bad debt to the CA, the CA is then authorized to post their collection to your CR, regarldess of any any prior postings by the OC

CA and OC "accounts" are totally separate.

Yes, a CA can report on the exact same debt that an OC was previously reporting.  They are not reporting debt, they are reporting on the escalation of delinquencies on payment of the debt.

So on a typical credit report, you can show simultaneously:

OC reporting of derogs on monthly payments (30/60/90+), ( these cease CRA reporting at 7 years from their indiv dates)

A CO by the OC (that ceases reporting after 7 1/2 from the DOFD on the OC account)

A CA reported to the CRA by a third party collection agency.  (also ceases reporting after 7 1/2 from DOFD on the OC account)

Message Edited by RobertEG on 02-09-2010 10:46 PM

[beehive]

Thanks for the great info!!! It now makes sense. So when I pay off the collection, I will write a PFD to the CA. What can I write to the creditor?

[beehive]

Oh, One last thing.

A CA reporting twice for the same collection???  It's the same amount and account number.

Thanks again!!! You have been really helpful!

[RobertEG]

It is important that you realize what a PFD offer is.

You cant just pay the CA with a PFD.  A payment for deletetion letter to them is just a conditional offer to pay, with the prior condition being written commitent on their part to delete their prior postings of their collection to  your credit file.  Before you pay a penny, you need written acceptance from them of their acceptance to delete in exchange or your later payment, and thus legal contract.

Until that time, a PFD means nothing.  They can simply ignore it.

And the CA, even with acceptance of your PFD offer, has zero authority to commit to any removal of postings to your CR made by the OC.

So those postings wil remain.

The only way to get OC postings deleted is by way of a good will request to them.  I dont see it as favorablle, but give it a shot!

Message Edited by RobertEG on 02-09-2010 11:10 PM