cancel
Showing results for 
Search instead for 
Did you mean: 

2 Yr old debt sold to collection agency and reporting as new

nhlbluesgirl
Valued Member

2 Yr old debt sold to collection agency and reporting as new

Not sure what to do. June 2019 I took out a Rise loan. It defaulted and was placed with National Management Recovery Corporation in December 2019. January 2021, Rise contacted me and said the loan is no longer with NMRC and is back with them. September 2021 I received another email from Rise stating that the loan was sold to NCB Management Services. NCB reported the account on my credit as opened Aug. 2021, which is having a high impact on my credit. Is this normal? It's a legitimate debt, but was from 2019, so shouldn't it have less of an impact? I'm assuming this would seem as a new debt to a mortgage lender, which is not the case. I'm looking to buy around July of this year.

FICO 8 as of 1/8/2022:


2 REPLIES 2
Revelate
Moderator Emeritus

Re: 2 Yr old debt sold to collection agency and reporting as new

Check the Rebuilding forum, see if you can get a PFD.

 

You could dispute it for being inaccurately reported but if you're heading into a mortgage you're better off seeing if you can just get it addressed completely: disputes do wonky things and while it *should* be resolved by the time you hit the apply button, a tradeline in dispute is going to get kicked out of automated underwriting and that isn't ideal at all.  I'm in a similar situation but my mortgage is a little later than yours... a utterly dumb $180 CO wound up on my credit report: like F me mail me or call me I would've thrown a dozen different credit cards at you to pay it off but ultimately my fault.

 

I'm pretty sure based on some research here from others that they will whack it if I pay it, but I just need to get through their phone queue.  See if you can get the same, but this is one of the few places I'd suggest digging into cash instead of squirreling it away for the mortgage.  The CO literally dropped me from 780-800 mortgage scores to 680 mid score: not a deal breaker, but I need to get rid of it if I can.




        
Message 2 of 3
Cowboys4Life
Regular Contributor

Re: 2 Yr old debt sold to collection agency and reporting as new


@nhlbluesgirl wrote:

Not sure what to do. June 2019 I took out a Rise loan. It defaulted and was placed with National Management Recovery Corporation in December 2019. January 2021, Rise contacted me and said the loan is no longer with NMRC and is back with them. September 2021 I received another email from Rise stating that the loan was sold to NCB Management Services. NCB reported the account on my credit as opened Aug. 2021, which is having a high impact on my credit. Is this normal? It's a legitimate debt, but was from 2019, so shouldn't it have less of an impact? I'm assuming this would seem as a new debt to a mortgage lender, which is not the case. I'm looking to buy around July of this year.


Yes, this is normal.  While the account being in default is not new it is new to the CA or JDB.  This is the major downfall to the consumer when an account is moved from CA to CA and then sold in that it can be reported as new each time the new entity reports it.  The CA/JDB cannot report for time prior to their assignment of the account.  It does NOT re-age the length of time it can be reported despite the new date showing a current one.  The DOFD still applies to the debt and reporting.  

 

Depending on how much you owe they are going to want it dealt with.  I would do so BEFORE they pull your reports.  

Message 3 of 3
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.