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This was brought up in another thread, but I think it deserves a thread of its own. I am wondering where we got the idea that both an OC and a CA can report the same account.

I was looking through the FCRA and I didn’t see specifically where it mentions no duplicate accounts, if anyone knows the number to that particular section, please let me know.

Now my question stems from the assumption that an OC and a CA both can report on the credit report. Where does it say that this is so? If it only says that there can’t be duplicates of the account, then isn’t that want it is when a OC reports it, then a CA goes and reports it? No matter how you look at it, it is still the same account. Couldn’t it be argued that since the OC is on there, the CA has no business posting the same account?

Can someone explain the difference between two CAs being reporting or a OC and a CA reporting.

Posted: Tue Apr 08, 2008 6:00 am Subject:

If you look at § 605, it defines what cannot be listed on a consumer report. And you're correct, it says nothing about duplicate accounts.

Since the FCRA doesn't specifically prohibit the OC and CA from both reporting, then it is lawful for them to do so. To argue otherwise is simply "wishful" interpretations and conjecture at best.

The OC reports the fact that they extended credit and it defaulted; the CA then reports the fact that the defaulted account was sent to them for collections. It may not seem fair, but it accurately depicts where money is owed (OC) and who is collecting for it (CA).

Posted: Tue Apr 08, 2008 9:37 am Subject:

Then what is stopping every CA who ever has hold of the account from reporting and making it stick?

I find it quite interesting that the CRAs will readily remove any account they find as a duplicate without even asking them for the verification. Usually it is like pulling teeth to get them to do things, but that they do quite easily.

I did find one point that may be of use (now can't recall where I saw it) but that if a OC is reporting an account, a CA can only place that account if the OC has it listed as charge-off. Now this makes a bit of sense, since a charge off means that account is done, then technically it becomes a 'new' account. This makes my head hurt. Smile

Posted: Tue Apr 08, 2008 10:34 am Subject:

Fortunately collection trade lines do not hurt your FICO score as much as that of the original creditor.

Guest · Posted: Tue Apr 08, 2008 7:03 pm Subject:

Massachusetts law:
18.17: Unfair Practices

A debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt. Without limiting the general application of the foregoing, the following conduct is a violation of 209 CMR 18.17:

11.#

For a debt collector to report to a consumer reporting agency on its transactions or experiences with a consumer in the debt collector's name. However, a debt collector may, with the express written authorization of the creditor, report to a consumer reporting agency in the creditor's name.

Posted: Tue Apr 08, 2008 7:13 pm Subject: debt

So..your saying, GUEST, that only ONE of them can report..or BOTH can report on the same account?

Guest · Posted: Tue Apr 08, 2008 7:46 pm Subject:

From the looks of it, only the original creditor can report in Massachusetts law. Once the account is taken over by a debt collector, I would think the Original Creditor would stop reporting so the debt collector can only report under the Original Creditors marking leaving only that entry and not a duplicate.

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