My questions are regarding exactly how the relationship process between an Original Creditor and a Debt Collection Agency goes and how they transact business with one another: Q1: Even though the original creditor has already sold a debt to a collection agency, can they still have that person’s information in their database? Q2: Can a person go back to the original creditor and call them to see if they still have their information in that database? And if so, can they request it to be removed since they no longer are trying to get the debt from you? Q3: Does the collection agency notify the original creditor that the debt has been paid, even though that debt wont be paid to the original creditor?
Hi Bstevieg. Welcome to Creditnet! Sharing some quick thoughts that will hopefully help you out. 1.) Yes, I don't see why they couldn't hold on to your info. since you were a customer. I think it's highly unlikely that the OC would delete all customer information from their database even once a debt has been sold. 2.) You could certainly make contact with the OC to see what information they have on file. They've likely reported the debt as a charge off and it will show up on your credit reports as such. Getting them to remove that info. from your credit reports often doesn't work, but you can always try. Each case is different. 3.) No, but they should report to the CRAs that the debt has been paid in full. Did you have a 4th question you wanted to ask too? Didn't see that one.
Thank you for your response Joshua. I put my fourth question, I felt, was mentioned in the second numbering (About contacting to see if they still have your info in the database and can it be requested to be moved). I felt as if I asked two questions in that one and you answered both. But the latter question within that second numbering, I was specifically asking, "And if so, can they request it to be removed since they no longer are trying to get the debt from you?", can you request your personal information to be removed from the OC's database since you're not currently doing business with them because you've been charged off by them. I understand that the OC has no control over what the credit bureaus have in their database, but what about your information in the OC's database, even well after the charge off has been executed.
You're welcome. Different states have different laws when it comes to consumer data deletion and I don't claim to be an expert on them all, but there's no reason why you couldn't make the request. That said, they may be reporting the charge off on a monthly basis to the CRAs and they have the right to do so if it's accurate. Is it showing up on your credit reports as a charge off with a $0 balance since it's been sold to a CA?
Its currently showing up as a "collection" with a $2,007 balance. I'm asking about it because I want to see what are my chances of getting it removed from my credit report. From my understanding, the collection agency has to have the legal right to the debt and the have to validate it. I heard that they validate it by going back to the original creditor. But if my information is not in the original creditors database, that would help my chances of getting it removed. I figure to go to the original creditor and have them remove my information? And to be honest, I'm not sure whether to send a dispute letter to the credit bureaus about the debt, or send a debt validation letter directly to the CA about this same debt and other debts. I don't even recognize who this creditor is in the first place.
If the OC has sold the debt, they should be reporting a charge off on your credit reports with a $0 balance. The CA should be reporting the collection. Do you have both showing up on your credit reports, or just the collection from the CA in the amount of $2,007? I would definitely send the collection agency a debt validation letter. Are you still within the 30-day timeframe? You can also dispute with the CRAs if you don't recognize this debt and the balance appears incorrect. I'm not sure I would spend time trying to get the OC to delete your information from their database. The CA could still validate without going back to the OC.
I dont believe the OC is reporting the $2,007 balance. I believe its a collection agency. Are you saying that the OC shouldnt be reporting it as "collection/chargeoff"? Are you saying the same thing about how a collection agency reports it as well? And no Im not in the 30 day timeframe. That was a long while back. And how does a collection agency validate your information?
No, I'm saying the OC could report it as a charge off with a $0 balance. If the OC isn't reporting anything, like in your case here, that's good. Then you only have to deal with the CA reporting the collection. You may want to try disputing the collection with the CRAs if something appears incorrect about it. Sometimes they magically go away, but you never know. Regarding debt validation, a collection agency just needs to to provide information on the OC, the balanced owed and the name of the person who owes the debt. They can do this in many difference ways, but imagine something like an account statement from the OC with your name on it. That type of thing is sufficient. Make sense?
