Hello everyone like to say it's great community. I have question that keeps bothering me. When a OC has sold your debt to a collection agency, does that mean they don't own the debt any more? Now my question is how they are allowed to keep reporting negative in info ( charge off ) when they no longer own the debt. My point is if the fact that they keep reporting negative is considered attempting to collect by the law, which i believe it is. So how can you attempt to collect on debt that no longer belongs to you? I hope u get it please explain. Thx 4 All Nirchoo
The OC can continue to report a charge off because that's exactly what it was for them. They charged off the debt and sold it to a collection agency, so yes, they no longer owe the debt. It was charged off, and that's the way it will live on your credit reports. They're not attempting to collect on the debt any longer because they don't own it anymore.
I disagree. Once the debt has been sold to a junk debt buyer, only the JDB and/or their collection agency should appear on your credit report. All of my defaulted debts which were sold to JDB's--including a Citibank credit card, T-Mobile account, and medical bills--show ONLY the JDB and in some cases their collection agency. The original accounts have disappeared from my reports.
B: if they've dropped off of your reports, that's great - BUT the LAW allows them to report the HISTORY of the ACCOUNT, including the fact that it was CHARGED OFF.
richoo: One thing that I just noticed in your original question; regarding reporting = attempt to collect. The best case on point is Sullivan v. Equifax, that case specifically says that reporting INACCURATE information is an attempt to collect a debt, as defined by the FDCPA. Secondly, the FDCPA only applies to debt collectors, except for some very rare occasions, so you need to understand that it doesn't apply to the original creditor in an overwhelming percentage of the time. A credit report is for company's that you've had business with to report that history with you. That history isn't extinguished by their sale of the alleged debt at a percentage of the alleged debts value.
