@kal9988 wrote:Hi All,
I have an "online lender" debt (5+ years old) on my TU and EXP credit reports, and they just sold the debt to a collection agency. This caused both scores to drop signficantly, as I now have two negative items for the same debt on each report -- one for the original lender and one for the collection agency. I submitted a dispute with both TU and EXP, but neither would remove any of the items.
Is there any way I can get one of the items removed from my report? It does not seem right that my score should be hit twice from the same debt?
Thanks so much!
Thank you. But how is it allowed that the same debt can affect me negatively twice?
If the OC (original creditor) sold the debt to a new owner and everything is being reported correctly, the OC should be reporting a zero balance. That means there is no longer any debt that is owed OC.
While the zero balance charge off would stop reporting monthly, the CO status would remain on reports as a notification to others the debt went into default with them, and they ultimately charged the account off as a loss, deeming it not having a reasonable chance of being collected. If the debt was paid by you there would be no further reporting of a remaining balance, or the reporting of a new collection account.
The CA (collection agency) who bought, and now currently owns the debt has a right to list that debt because you now owe them the unpaid balance plus any interest and fees. By them reporting it, it shows other potential lenders that the debt, while satisfied with the OC, still remains unpaid.
Fair? I guess that depends on one's vantage point. As a consumer that owes the debt, and it being reported... probably not. As a potential lender, they find it advantageous to have an accurate picture as to pertains to someone's ability and propensity to fulfill their obligations. While the debt never really goes away, the law is on the consumer's side in that it says after seven years from the DOFD it must be removed from credit reports. To be the devil's advocate, I'm sure the question of whether it's fair or not takes on a reverse role by those who are still owed money at that point.
