Removal of a Sold Collections from Credit Report

[Anonymous]

Hello, I have a unpaid Credit One Bank collection on my credit report that was sold to LVNV Funding.  I am making monthly payments to LVNV Funding through a 3rd party.  Can anyone tell me how to get the Credit One Bank collection removed and what should I include in the letter to Credit One Bank?     

Thanks so much

[Brian_Earl_Spilner]

Credit One and LVNV are owned by the same company. Who's the 3rd party?

[Anonymous]

A judgement was granted to LVNV Funding.  I received a letter from Scott & Associates, PC stating that they were collecting for LVNV Funding.  So, LVNV as the same company.  I wonder why they are both reporting the same collection?  I think I need to try to get one or both of them removed.  I've made two payments to Scott & Associates.  Scott & Assciates mailed me an agreement for making monthly payments.  I wasn't comfortable with signing the agreement, so I didn't and have been just making the payments.  I need to get both of them removed.  But, should one or the other be working to the credit bureaus and not both?

Thanks so much

[RobertEG]

An original creditor reports information on their account to the CRAs, including payment history derogs.

A debt collector can also report a collection that is based on the same debt.  They are reporting the fact that the debt collector was authorized collection authority, either by way of assignment from the owner, or by way of their purchase of the debt.  It is additonal information relating to the history of attempting to obtain payment of the debt.

Both can, and commonly do, appear on the same credit report.  That is totally proper.

What is not proper is the simultaneous inclusion of multiple collections on the same debt.

While not explicitly prohibited by any provision of either the FCRA or FDCPA, the CRAs have established internal policy guidelines, incorporated into their common credit reporting manual, the "Credit Reporting Resource Guide," instructing a debt collector who either sells or assigns their collection authority to another debt collector, to delete any collection they have reported.

That CRA policy is implemented in order to prevent two collections from simultaneously reporting on the same debt.

In the posted scenario, the original creditor can report their account, and if they sold the debt to LVNV, then that debt collector could also report their collection.  The orginal creditor would, if they sold the debt, have been required to have updated the debt balance reported on thier accout to $0.

If LVNV then assigned collection authority to Scott % Associates, and Scott then reported their collection, CRA policy would require LVNV to then delete their reported collection in favor of their assigned debt collector.

[Anonymous]

Thank you very much.

LVNV Funidng is what shows up on my credit report.  Scott & Associates is the firm that sent the letter in the mail about the lien being granted.  I make payments to Scott & Associates and I am assuming they will update LVNV of the balances so the bureaus can be update.  

I'll  try to google the Credit Reporting Resource Guide and get any references I can so I can write to Credit One and ask them to remove the collection since they've sold it to LVNV. 

I appreciate all the guidance.  Thanks !!

[RobertEG]

There appears to be some confusion as to terminology regarding a "collection."

I thought Credit One was the ortginal creditor, not a debt collector? 

LVNV is now apparently the debt collector who purchased and still owns the debt.

There is no "sold collection" to be removed, only a debt that was sold by an OC to a debt collector.

The original creditor cannot "remove the collection" that has been reported by any debt collector.

It is not their reported collection, and only LVNV can report the deletion of their own reporting.

You will not find anything in the Credit Reporting Resource Guide that instructs/permits one party (e.g., Credit One) to report deletion of reporting made by another party (e.g., LVNV).

LVNV, as a reporting debt collector, would only be subject to deletion if they passed collection authority on to another debt collector.

Smith & Associates is apparently acting only as a legal counsel, and has not acquired status as a debt collector, and thus the ability to separately report their own collection to the CRAs.

As I understand the posted scenario, I see no basis for compelling the deletion of the collection being reported by LVNV.