topic Re: CA sold debt to another CA ... in Rebuilding Your Credit

CA sold debt to another CA ...

Anonymous — Sat, 26 Jan 2013 03:24:20 GMT

I apologize for you guys having to answer this question for probably the 1,000th time.

I have a $57 medical collection that is showing right now from NCO ... I got a letter in the mail to day from National Bond trying to collect the same debt.

Could you guys please explain to me how this is going to work? When National Bond starts reporting, will the NCO have to drop off?

Thank in advance!

Re: CA sold debt to another CA ...

llecs — Sat, 26 Jan 2013 06:43:23 GMT

Usually if a CA sells a debt, they'll stop reporting then at a later date the new CA could report if they wanted to.

One common practice is for a CA to outsource collections to another CA. So, there's a scenario where NCO still owns the debt, will continue to report, but outsources calls and letters to the new CA. Something to keep in mind if you don't see them deleting.

Re: CA sold debt to another CA ...

Shogun — Sat, 26 Jan 2013 14:03:38 GMT

DV them both, whichever validates, send them a PFD.

Re: CA sold debt to another CA ...

Anonymous — Sat, 26 Jan 2013 17:49:18 GMT

llecs / Shogun,

Thank ya'll for your responses. Can I still DV them both even though National Bond is not on my CR and NCO is? Thanks!

Re: CA sold debt to another CA ...

RobertEG — Sat, 26 Jan 2013 20:30:30 GMT

Sending a DV has nothing to do with credit reporting (other than blocking additional reporting until they provide verification). You can DV any debt collector that you are aware of who is conducting collection on a debt, regardless of their credit reporting or lack thereof.

If a DV is sent to a debt collector who is no longer collecting on the debt, the cease collection bar that it imposes will be moot. So send if you are in doubt as to their status, and if not now collecting, they will simply ignore.

As for a requirement that a first debt collector delete their reporting once their collection authority is terminated or they assign collection to another, no such requirement is imposed under either the FDCPA or FCRA. You can have only one debt collector conducting active collection, so if debt collector 2 reports, debt collector 1 must update their collection to show closed, with $0 under collection.

Re: CA sold debt to another CA ...

Anonymous — Sat, 26 Jan 2013 18:37:20 GMT

Robert, thank you very much I will get working on the DVs now.

Re: CA sold debt to another CA ...

Anonymous — Sat, 26 Jan 2013 19:44:15 GMT

if they do validate the debt, I would write a pay to delete letter. if i read your message right, its only 57 dollars which means the collection agency isnt making much by collecting the debt. Ive heard pay to delete letters can cost about 50 bucks to have them remove it but its worth it.

Re: CA sold debt to another CA ...

RobertEG — Sat, 26 Jan 2013 21:36:35 GMT

Before you just shoot out a DV to debt collector 2, you might consider the following.

If I understand the scenario, debt collector 2 has not yet reported?

If not, then yes, a DV will gain a temporary respit from their reporting, but they can verify at any time and immediately report. That is under their control.

A DV has no time limit in which they must provide verification. They can sit on it.

Meanwhile, the same cease collection bar that prevents their credit reporting also precludes them from any negotiations on a pay-for-not reporting offer on your part.

As I see it, you have the option of making a pay-for-not reporting offer that wont require them to delete anything, and thus may be more favorably received than requesting deletion after they have reported.

A DV would take away that option.

An alternative to ponder....

Re: CA sold debt to another CA ...

Anonymous — Sat, 26 Jan 2013 22:12:19 GMT

Robert,

That is correct. National Bond sent me a dunning notice last week. They have yet to report to the CRA's yet.

I have 3 medicals on my CR that are just annoying ... less than $200 for all 3 but just killing my scores! I know that the one showing NCO (Which is now National Bond) is the one the topic is about, but I will show you all 3 in case you have any other advice.

FREDERICKSBURG CR BUR
Address: 10506 WAKEMAN DR FREDERICKSBURG, VA 22407
(540) 834-4400
Account Number: 6201060XXXXXX
Original Creditor: XXX EMERGENCY PHYS
Address Identification Number: 0049XXXXXX
Status: Collection account. $67 past due as of Apr 2011. Status Details: This account is scheduled to continue on record until Mar 2017.
Date Opened: 02/2011
Reported Since: 04/2011
Date of Status: 04/2011
Last Reported: 04/2011
Type:
Collection Terms: 1 Months
Monthly Payment: $0
Responsibility: Individual
Credit Limit/Original Amount: $67
High Balance: NA
Recent Balance: $67 as of 04/2011
Recent Payment: $0
Payment History:

Account History:
Collection as of Apr 2011

NCO FINANCIAL SERVICES/99
Address: PO BOX 15636 WILMINGTON, DE19850
Account Number: 741XXXXX
Original Creditor: XXX EMERGENCY PHYS
Address Identification Number: 0045XXXXXX
Status: Collection account. $57 past due as of May 2012. Status Details: This account is scheduled to continue on record until Dec 2017.
Date Opened: 10/2011
Reported Since: 11/2011
Date of Status: 11/2011
Last Reported: 05/2012
Type: Collection
Terms: 1 Months
Monthly Payment: $0
Responsibility: Individual
Credit Limit/Original Amount: $57
High Balance: NA
Recent Balance: $57 as of 05/2012
Recent Payment: $0
Payment History: Account History:
Collection as of May 2012, Mar 2012, Nov 2011

VALLEY CREDIT SERVICE INC
Address: PO BOX 83 STAUNTON, VA 24402
(888) 992-2313
Account Number: 31112XXX

Original Creditor: XXX XXX HOSPITAL

Address Identification Number:0045XXXXX
Status: Collection account. $176 past due as of Dec 2011.

Status Details: This account is scheduled to continue on record until Dec 2017.
Date Opened: 09/2011
Reported Since: 12/2011
Date of Status: 12/2011
Last Reported: 12/2011
Type: Collection Terms: 1 Months
Monthly Payment: $0
Responsibility: Individual
Credit Limit/Original Amount: $176
High Balance: NA
Recent Balance: $176 as of 12/2011
Recent Payment: $0
Payment History:
Account History:
Collection as of Dec 2011