Open collection now closed?

[Anonymous]

I had a collection account that was reporting open for the last 2 years. I haven't settled on it yet cause the company is a pita to work with. They just closed the account. What does this mean? Are they possibly selling it? Could it be getting recalled and resold by OC? Does it mean nothing? It happened after I removed the dispute remarks that were reported on it.

[RobertEG]

In most cases, when a debt collector reports that their unpaid collection is closed, it is because their collection authority has been terminated, either because the current owner has terminated their assignment of collection authority, or if the debt collector owned the debt, they sold it to another.

However, there are some isolated instances reported here in the forum where a debt collector has chosed to report their collection as temporarily closed to collection activity if they are placed under a cease collection bar by receipt of a timely DV request from the consumer.

Did you send any request for debt validation?

If closed due to termination of collection authority, current CRA policy (not a requirement of the FCRA or FDCPA) instructs the debt collector to report deletion of their collection.

That CRA policy is intended to prevent subsequent inclusion of plural collections on the same debt, as once a first debt collector has their collection authority terminaed, a second debt collector can acquire collection authority and then report at any time.

If sure that their collection authority has been terminated, you can dispute with the CRA, citing their reporting policy as basis for deletion of the collection.

[Anonymous]

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@RobertEG wrote:

In most cases, when a debt collector reports that their unpaid collection is closed, it is because their collection authority has been terminated, either because the current owner has terminated their assignment of collection authority, or if the debt collector owned the debt, they sold it to another.

However, there are some isolated instances reported here in the forum where a debt collector has chosed to report their collection as temporarily closed to collection activity if they are placed under a cease collection bar by receipt of a timely DV request from the consumer.

Did you send any request for debt validation?

If closed due to termination of collection authority, current CRA policy (not a requirement of the FCRA or FDCPA) instructs the debt collector to report deletion of their collection.

That CRA policy is intended to prevent subsequent inclusion of plural collections on the same debt, as once a first debt collector has their collection authority terminaed, a second debt collector can acquire collection authority and then report at any time.

If sure that their collection authority has been terminated, you can dispute with the CRA, citing their reporting policy as basis for deletion of the collection.

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I didnt dispute it or request validation. The last time I spoke to them was last spring after they verbally assaulted me over the phone and I filed a consumer complaint against them. They responded and put a dispute comment on my account. I finally requested it get removed from my reports two weeks ago stating that I never disputed the account. The CRAs removed the comment. 

How would I find out if the CA right to collect has been terminated? Would it be safe to say their collection authority was terminated because I didnt send a DV to them or anything? I know they don't own the debt. When I contacted the OC last year about it they told me it was not sold but that the CA was hired to collect on the debt and it was "nontransferable" so the OC couldnt work with me on payments or anything regarding the account. Honestly, Id love for a different CA to get this debt so I could actually work out a settlement without being verbally assaulted for not having the money to pay it in full right then. 

[RobertEG]

Yes, if you did not impose any cease collection bar by sending a DV request, then you can logically infer, and thus argue, that closing of the collection designates closing (termination) of their collection authority, and argue that as basis in a dispute filed with the CRA for deletion of the collection.

[Anonymous]

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@RobertEG wrote:

Yes, if you did not impose any cease collection bar by sending a DV request, then you can logically infer, and thus argue, that closing of the collection designates closing (termination) of their collection authority, and argue that as basis in a dispute filed with the CRA for deletion of the collection.

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Great. Thank you so much for your feedback.