Open derogatory trade line and collection

[Anonymous]

I'm new to forums but have done a lot of reading. I thank all of you for the helpful information.

I'm working to improve my credit worthiness but have struggled with past debts. I currently have an open derogatory trade line which indicates "charge-off" but this same account was apparently sold to a collection agency. The account now reports twice on my report as an 'open derogatory' and 'collection.' I have another account that reports twice as closed derogatory and collection, which is how I believe it should be reported if it should even be reported twice at all. I think the open derogatory hurts my credit monthly and I would like to know what I should do to correct this? Thank you

[RobertEG]

Are you sure that the account was sold to the debt collector, or was it possibly only assigned to them for collection on the debt?

If sold, the account should be updated to closed, but that is a formality.  It does not affect the derogs reported on the OC account, and does not affect the legitimate reporting by the debt collector of their collection on the debt, be it based on assigned authority or ownership.

[Anonymous]

That's a good question that I hadn't thought about. How would I be able to determine if the account has been sold to the CA? 

Also, are you indicating the status of open/closed derogatory is only a formality and does not affect my score differently?

[gdale6]

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@Anonymous wrote:

That's a good question that I hadn't thought about. How would I be able to determine if the account has been sold to the CA? 

Also, are you indicating the status of open/closed derogatory is only a formality and does not affect my score differently?

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The OC has to report a 0 balance if the debt has been sold. I would not worry about the open/closed notations what Fico looks at for scoring purposes is the status date (last date of update of the TL)

[Anonymous]

Thank you, that answered my questions.