Original Creditor vs Collection Agency Question

Anonymous · ‎05-31-2020

Hi All,

Question - if a debt was sold to a collection agency but the orginal creditor is the only one reporting the debt on my credit report, is this something that I can dispute? I'm so confused about this because I thought once the debt was sold, the original creditor no longer has rights to report the debt and the account belongs to the collection agency. The status reporting is "Account transferred to another office". I paid the full balance to the collection agency but they never reported the debt to the credit bureaus and once I satisfied the balance the orginal creditor updated the balance to zero.

Brian_Earl_Spilner · ‎05-31-2020

No, they have the right to report it for up to 7.5 years from default. That's why it's recommended to pay a chargeoff before it gets sold to a CA. If they report it, you'll have 2 negatives reporting for a single account

Brooklyn2018 · ‎05-31-2020

@Brian_Earl_Spilner wrote:
No, they have the right to report it for up to 7.5 years from default. That's why it's recommended to pay a chargeoff before it gets sold to a CA. If they report it, you'll have 2 negatives reporting for a single account

I had a Verizon CO that was sold to Jefferson Capital and I was able to get that settled and deleted(deletes are eligible 2yrs after DOFD.)

I contacted Verizon and reminded them that my debt has been settled with JC and since the account has been sold, Verizon could not validate a debt of which I owed them. The CSR agreed and immediately put in a request to all 3 CRA's to delete their entry since they no longer owned the debt. Can't validate? Must Delete! JMOE....YMMV?

ETA: Verizon updated entry to $0 bal, as well, but deleted entry when I phoned them(above)

Goal Score: 600(within a year)**MET MY GOAL** | Goal Score: 700**MET MY GOAL** | Goal score: 800
Take the myFICO Fitness Challenge

>

I❤️NY

Anonymous · ‎06-01-2020

@Brooklyn2018 wrote:
@Brian_Earl_Spilner wrote:
No, they have the right to report it for up to 7.5 years from default. That's why it's recommended to pay a chargeoff before it gets sold to a CA. If they report it, you'll have 2 negatives reporting for a single account
I had a Verizon CO that was sold to Jefferson Capital and I was able to get that settled and deleted(deletes are eligible 2yrs after DOFD.)
I contacted Verizon and reminded them that my debt has been settled with JC and since the account has been sold, Verizon could not validate a debt of which I owed them. The CSR agreed and immediately put in a request to all 3 CRA's to delete their entry since they no longer owned the debt. Can't validate? Must Delete! JMOE....YMMV?

ETA: Verizon updated entry to $0 bal, as well, but deleted entry when I phoned them(above)

Congrats! That is like hitting the credit lottery!

For the OC to do that is 1 in a million. They have every right to report on your credit even after selling to a CA, so I would definitely say that is extremely YMMV. If they haven't updated in quite some time, disputing it will update the account if only somes back verified, dinging your credit again, so one should always proceed with extreme caution when disputing absolutely valid accounts.

Again, congrats on your major score!

Also, I am surprised Verizon was reporting on your CRs in the first place, I have never had a cell company report monthly.

vntrsc · ‎06-01-2020

@Brooklyn2018 wrote:
@Brian_Earl_Spilner wrote:
No, they have the right to report it for up to 7.5 years from default. That's why it's recommended to pay a chargeoff before it gets sold to a CA. If they report it, you'll have 2 negatives reporting for a single account
I had a Verizon CO that was sold to Jefferson Capital and I was able to get that settled and deleted(deletes are eligible 2yrs after DOFD.)
I contacted Verizon and reminded them that my debt has been settled with JC and since the account has been sold, Verizon could not validate a debt of which I owed them. The CSR agreed and immediately put in a request to all 3 CRA's to delete their entry since they no longer owned the debt. Can't validate? Must Delete! JMOE....YMMV?

ETA: Verizon updated entry to $0 bal, as well, but deleted entry when I phoned them(above)

As has been pointed out, the OC's deletion was not common. Verizon had a right to verify. The purpose of the FCRA is accurate reporting. Verizon would have been verifying that the information it had reported about the account during the period of time it owned that account was accurate.

Anonymous · ‎06-01-2020

Thank you for responding! It would be nice since they refuse to update the account to paid in full. Not sure what else I can do but to let it fall off in the next two years.