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Is it legal for an original creditor and a collection agency to have a listing each on the same account?
Wiki User
∙ 8y ago
It is legal for this to occur, just as long as the original creditor updates their tradeline showing the account has been "transferred or sold" and the balance is updated to "0". What is NOT legal is for a collection company to place a debt on your credit report that is just about to reach it's statute of limitations for the purpose of keeping it on your credit report beyond the 7 year statute ("resetting the clock" so-to-speak). In other words, even if the debt is transferred to 6 different companies and they each report a trade line to your credit report, once the 7 year statute has expired, the bureaus must remove all tradelines from your history regarding the debt.
I hope this is of some assistance!
Wiki User
∙ 8y ago
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If a collection account has been removed from credit report will it get effected by the 'last activity date' if a person pays the balance off?
It may. There is no way to tell what the repercussions will be. If the company (assuming that it is a collection agency and not the original creditor) is willing to take your payment and not update the now non-existant credit listing, then it may have no effect, except to clear your conscience. If it is an original creditor, like a credit card company; their processes of reporting and updating bureaus are so fragmented and automated, they may not be aware of, or able to control, the reporting of information to the bureaus. A paid collection with a recently reported date MAY find its way back onto your credit and impact your credit scores. Technically, the date the account was paid is NOT the date of last activity. However, this error is a common occurence and may happen in your case.
How do you remove charged off from your report?
Only the original creditor or the credit bureaus can remove a charge off from a credit report. You can negotiate to have them removed with the original creditor if they will let you. You can also dispute it to the credit bureaus and they will have 30 days to verify the listing or it must be removed from your credit report.
When filing bankruptcy do you list the original creditors or the collection agencies?
You will list on the petition the actual names of the creditors not the collection agencies. After you file your petition you will give your docket number to any of the creditors or the collection agencies who are trying to collect monies for the creditors listed on the petition when they call you or send their demand letters. Please be very careful to include ALL the creditors you wish to declare bankruptcy on. Once you file your petition you cannot add creditors later. You can actually amend your BK Schedules anytime prior to discharge, so if you forget someone, its not too late. However, you will have to mail the notices of Commencement of Chapter 7 yourself and will be responsible for renoticing the creditors if notices are returned due to a dead address or forwarding expiration. I recommend listing both the collection and the original creditor. The collection agency may have purchases the debt and be more than a collection agency at that point. Also, listing the collection agency means that that they will be notified of the automatic stay directly by the court and the phone calls will stop sooner. Regardless of what you do, remember that the new law that goes into effect in October 2005 requires you to list the original creditor at the address on your statements. I am a bankruptcy attorney and I always list both the original creditor and the collection agency or attorney representing the original creditor so that the creditor cannot later complain that they did not receive proper notice of the bankruptcy. I always pull a fresh credit report from all 3 bureaus on the date the petition is filed so that I don't miss any creditors who may have bought an account or that are representing a creditor in some way.
My credit report shows a delinquent account from 2005 a collection agency is listing it now reported as of 6 2009 is that legal?
No it is called re-aging which is federal violation, collection agencies do this to refresh the SOL so they have legal recourse to sue you for the debt.
Can you reopen a discharged chapter 7 BK due to the lawyers not listing my landlord as a creditor?
is this malfeasance on the lawyers part????
How can a co-signer file bankruptcy on an unpaid vehicle without interfering the credit of the primary signer?
By listing the creditor on the bankruptcy schedules.
What are library catalog?
It is the listing and description of items, subject, topics or materials in a particular collection.
How does a vehicle repossession affect your credit if everything else in your credit report is good?
Absolutely. Repossession, whether voluntary or involuntary, show on your credit report as a charged off account. This designation is similar to a collection account and shows that you did not repay the vehicle loan. Such a listing in your credit report would have a significant negative impact.
How do you pay off collections and is it possible to offer 50 cents on the dollar for the creditor to drop the listing on your credit report?
It's entirely possible to work out a payment agreement with your creditor, or even a collections agent. However, this is considered a charge-off and will remain on your credit regardless of whether you pay it off. Once an account has gone late, there's really nothing you can do but wait the seven years it will take to drop from your record.
What field on the listing is critical to your control of the items listed on your account?
The serial number
If your charged off credit card is sold to a collection agency that sues you how does this show up on your credit report if they're paid?
The appearance would depend upon whether or not a lawsuit was filed and granted. The original credit card account should appear on your credit, its' delinquent status, history, Date of Last Activity (DLA), zero balance and some indication of sold or transferred. The collection agency account will comprise a 2nd listing, referencing back to the original account and contain the current balance, the DLA (which should NOT have changed), and the dates the track when the account came to be in their possession. If a suit is filed and judgment is granted against you; that would comprise a third listing of this account on your credit report. This would appear in the public records portion of your credit and have the starting date of when the judgment was filed. It has its' own length of time for reporting purposes and would need a legal disposition (a satisfaction of judgment) in order for it be closed. Once a judgment is granted against a consumer, creditors may then undertake any legal remedies available under (your) state's laws. These include wage garnishment, freezing of bank accounts and attaching liens to real property.
If an account is charged off and then sold to another company can both companies report on your CR?
Yes, both accounts can show on your credit report and this is typical. The first listing should show the history while the account was with the original creditor, including the charged off notation, a zero balance and some statement indicating that it was sold or transferred. The second listing should show the dates relating to that purchase or transfer and the current balance. The date of last activity should remain consistant on both accounts. This is the date you last paid on the account immediately prior to it becoming delinquent. This date triggers the (7 year plus 180 days) countdown for how long both listings are supposed to show on your credit report. If you get sued over this debt and a judgment is granted against you, that would constitute a third listing of this same account. A judgment would be in the "public records" portion of your credit report. It would have its' own beginning date and 7 year reporting time period.
