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Reporting sold debt

Date: Fri, 03/02/2012 - 11:35
Submitted by fivestarcredit on Fri, 03/02/2012 - 11:35
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Hello everyone like to say its grate community , i have question that keep bother me , when a OC is sold !! your debt to a collection , that mean they don't own the debt any more , now my question is hoe they allowed to keep reporting negative in info ( charge off ) wile they no longer own the debt , my point is if the fact that they keep reporting negative is considering attempting to collect by the low ? which i believe it is , so how can you attempting to collect on debt that no longer belong to you . i hope u get it pleas explain ,
is their any low or case low ,that proving the pact that reporting negative info to the CRA is considering an attempt to collect on behalf of the source of the info ?



Tnx 4 All


When the OC charges off your account, it means they are writing it off as a bad debt/loss and therefore they report it to the CRAs. The OCs have the option of 'selling' off the debt to a collection agency for a fraction of what its worth or they can also contract a collection agency to collect the debt on their behalf. In your case, the debt has been written off and then sold. The OC reported it since it appears as an item of loss in their books.


Submitted by StevenDoyle on Fri, 03/02/2012 - 23:34

StevenDoyle

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Yes the original creditor can report it to the CRA's and it will stay on your reports for the next 7 years. That's legal. As for the CA reporting it to CRA's...that may vary depending on your situation. First off, did you send the CA a validation letter within 30 days of receiving their letter?


Submitted by BD85 on Sat, 03/03/2012 - 12:57

BD85

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