Question about multipe tradelines for the same debt

How did you dispute it? advise the CRA they are the same account and one needs to be deleted as a duplicate.

In each case I disputed it as "debt reported twice", and referenced the other account number in the notes.

So is this true then? I just want to make sure before I dispute it again.

vikingshelmut, if I am not mistaken, the debt was reported correctly. The original debt was reported as charged off. It was also reported by the collection agency as paid. You have cleared your debt with the collection agency, however, the original debt with your original creditor was charged off, which can be reported for up to seven years. If I am misunderstanding the situation please correct me. But as stated, I think the report is correct.

dmj210,

This is why I'm asking this question. I'm unclear because some have reported this is not accurate, and you are stating otherwise. If you are correct, this seems like "double jeopardy" if you will. If one company sold the debt, then they should relinquish the right to report on this debt.

When I get my updated credit report, post again and let you know what was removed, and why. I just wish this issue could be answered and put to bed!

I have been reading few articles online about this particular case. There are confusions, but my understanding is that, once creditor places a charged-off account in collection, creditor report the account as charged-off with zero balance. And collection agency will also report the same account as in collection with ???balance.

Now if more than one collection agencies are there for the same account, then it is a mistake and you have to dispute it.

I have also read at many places that when a charged-off account is placed to collection it should be updated as charged-off/collection, hence no question of two trade lines. It would be better if you call the toll free # of credit bureaus and get the correct information.

Vikingshelmut, I can see why you would think that this does seem a bit unfair. The thing is, the original creditor is not reporting that you still owe them money. The original creditor is basically reporting that you did not pay your debt as agreed, and that they had to hire a third party to collect the debt. This is still a negative for them, as they do not receive the full amount when a third party collector recoups the debt for them. They simply sold the debt to the collection agency. Hence, they report the debt as charged off, and your "new" debt is with the collection agency.

Couple of questions for dmj,

1. Does it make any difference if they debt was sold or OC hired a CA?

2. What if the account goes rolling from one CA to other?

It still seems that there are 2 negative listings for one account. Even if you pay the collection agengy in a timely and agreed manner as agreed, the debt still shows as a collection account and the origianl creditor shows the debt as a charge off (also a negative). Since both listings are for the same account, it seems like this would be a duplicate listings.

I had one debt that showed as a chargeoff/never late.
Does that make any sense?

Stella's guess: the account went default one time and that led to charged-off. No other late payment was there.

Thank you stella