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fuzzybean
Posts: 309
Registered: ‎04-04-2012
Finding out when a collection agency bought a bad debt?

I'm asking because something that was included in our bankruptcy was supposedly sold to Sherman Financial.  So, the CC company is saying the debt was sold and that they can in fact leave it as a charge off on our credit reports.  Apparently, Sherman has a history of buying bad debt AFTER bankruptcy has been filed or even discharged.  Do I contact the CC company and ask them?  Or, do I contact Sherman Financial and ask them?  I would be afraid of opening a can of worms if I contacted the CA.

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llecs
Posts: 32,881
Registered: ‎08-04-2007
Re: Finding out when a collection agency bought a bad debt?

Look for the "open date" on your CR. When a CA reports that date it generally means that is when they took over.

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fuzzybean
Posts: 309
Registered: ‎04-04-2012
Re: Finding out when a collection agency bought a bad debt?
[ Edited ]

The CA isn't on my CR and never has been.

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llecs
Posts: 32,881
Registered: ‎08-04-2007
Re: Finding out when a collection agency bought a bad debt?

Could it be past the 7-7.5 year CRTP?

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fuzzybean
Posts: 309
Registered: ‎04-04-2012
Re: Finding out when a collection agency bought a bad debt?

No, it was included in our bankruptcy but they are claiming they sold the debt.  I need to find out when so I know if it was before or after we filed for BK.  If it was sold before, I'm not sure what I can do about it.  If it was sold after, I assume that's wrong and should be corrected somehow.

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fuzzybean
Posts: 309
Registered: ‎04-04-2012
Re: Finding out when a collection agency bought a bad debt?

llecs wrote:

Could it be past the 7-7.5 year CRTP?


What is CRTP?

 

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fuzzybean
Posts: 309
Registered: ‎04-04-2012
Re: Finding out when a collection agency bought a bad debt?

I just called and found out the date and I'm so upset.  It was sold a few months before the bankruptcy but we never knew.  Heck , we didn't know until yesterday.

 

So, we have this credit card company that was included in our bankruptcy but because they sold it prior (unbeknownst to us) they are allowed to show it as a charge off.  I find this so wrong.  If they were included, then they should be showing that way even if they did sell the account.

 

Does anyone have any suggestions?  Do I have anything to stand on at this point?  Besides the BK it's the only bad thing left.  It's not due to fall off until the middle of 2014.  :smileysad:

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llecs
Posts: 32,881
Registered: ‎08-04-2007
Re: Finding out when a collection agency bought a bad debt?

fuzzybean wrote:

llecs wrote:

Could it be past the 7-7.5 year CRTP?


What is CRTP?

 


This may be a non-issue. By law, per the Fair Credit Reporting Act (FCRA), certain baddies can only report for a finite period of time. Generally it's 7 to 7.5 years from the Date of First Delinquency (DOFD) of the debt. DOFD is the date you first went late and never ever recovered again. So, if you have a CC that went bad in early 2005, then before the year is over, it either has to be deleted or the lates and neg. comments removed. If any collection agency reports that debt, or bought the debt, they too must disappear by this year if the DOFD was in 2005. It doesn't matter if they bought the debt yesterday, the 7-7.5 years applies from the DOFD and it must go away.

 

I noticed in your siggy that your BK was discharged in 2007. When did you file? If the default with the CC company was prior to 3/2005 (7.5 yrs ago), then the CA can't report anyway. It would be too old to report and they can't do anything.

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fuzzybean
Posts: 309
Registered: ‎04-04-2012
Re: Finding out when a collection agency bought a bad debt?

llecs wrote:

fuzzybean wrote:

llecs wrote:

Could it be past the 7-7.5 year CRTP?


What is CRTP?

 


This may be a non-issue. By law, per the Fair Credit Reporting Act (FCRA), certain baddies can only report for a finite period of time. Generally it's 7 to 7.5 years from the Date of First Delinquency (DOFD) of the debt. DOFD is the date you first went late and never ever recovered again. So, if you have a CC that went bad in early 2005, then before the year is over, it either has to be deleted or the lates and neg. comments removed. If any collection agency reports that debt, or bought the debt, they too must disappear by this year if the DOFD was in 2005. It doesn't matter if they bought the debt yesterday, the 7-7.5 years applies from the DOFD and it must go away.

 

I noticed in your siggy that your BK was discharged in 2007. When did you file? If the default with the CC company was prior to 3/2005 (7.5 yrs ago), then the CA can't report anyway. It would be too old to report and they can't do anything.


I just meant what do the letters stand for?  :smileywink:

 

We filed in August 2007 but it was sold in April 2007.  It says this in the comment box for Equifax:

 

LAST REPORTED DELINQUENCIES: 01/2007=R5,12/2006=R5,11/2006=R4 CHARGED OFF ACCOUNT ACCOUNT TRANSFERRED OR SOLD

 

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llecs
Posts: 32,881
Registered: ‎08-04-2007
Re: Finding out when a collection agency bought a bad debt?

Credit Reporting Time Period.

 

When was the DOFD?