CRA policy instructs debt collectors to delete their reported collection if their collection authority is terminated with the debt remaining unpaid.
The purpose of that CRA policy is based on the fact that the unpaid, delinquent debt can then be assigned or sold to another debt collector, who then has the right to report their collection to the CRA. If the prior collection also remains, the consumer's credit report will then include two simultaneous collections on the same debt. The CRA policy is intended to prevent that occurence.
A debt collector can have their collection authority terminated in one of two ways.
If they do not own the debt, and thus only have assigned collection authority, the owner can terminate that assignment.
If they do own the debt, their sale of the debt to another also would terminate their collection authority.
