Collection accounts

[senseidab]

Can someone please explain to me how ro read my credit report.  The TU report staes Account Charged off Paid  -0- Balance.  2nd question is I am making payments to a collection agency who purchased the account from the OC.  The collection agency is not listed on credit report, but the OC is with a charge off  and a 200.00 balance. Once  pay the Collection Agency will they report the account paid to the OC and does the OC now report the account paid. Thank you any help is appriciated

[RobertEG]

When an OC charges-off a debt, the amount of the debt remains in the credit report until paid, or until the OC sells the debt.

When an OC refers a debt, with or without a prior charge-off, to a debt collector, and the OC retains ownership of the debt, then both the OC and debt collector will report the debt..  If you pay the CA, they will then report the debt as paid with a %0 balance, and report the payment back to the OC, who will then update the balance to $0.

Payment does not result in any deletion from your CR, just an update of the status ot paid.

However, if the OC sells the debt to a collection ageny, with or without a prior charge-off by the OC, the OC will then report a $0 balance.  That does not mean the debt is paid, only that the OC has sold the debt, and thus it no longer resides with them.  The purchasing CA does not have to report their collection activies to a CRA.  If they do, they will report the amount of the debt.  If you then pay the CA, the CA will update the debt balance to $0.  There is no reason for them to contact the OC, who is already out of the picture.

If the CA has purchased the debt, the OC should be reporting a $0 balance.