Credit Report / Credit Score

The Original Creditor and Collection Company are Reporting the Same Balance

Written by Steve Rhode


Dear Steve,

Query about the question a reader sent to you that I read and that you answered

Clarification, please, if a credit card debt is SOLD by a creditor not put into the hands of a debt collection agency to COLLECT the debt on their behalf.

I note the answer you gave to this questioner. It reads as follows “Have settlement letter from collection company and complete the last payment in Oct.

The original creditor shows the remaining balance of debt and reduces it with each payment to the collection company. The collection company is also making monthly reports that I have the debt but no balance. Is it legal for the original company (R.C.Willy to report the debt balance each month to the 3 bureaus and their collection company to report that I have a collection to the three bureaus? I.E., the collection company does not state that the debt is with R.C. Willy ?”

My question for clarification is, what if the original Creditor SELLS the debt to a debt agency rather than employing a debt collection agency to collect payments for the original creditor? Would it be correct to show both accounts as being owed on a credit report, i.e., if an account is SOLD that has a debt, for example of $1,000.00 why would both accounts show on credit report showing total debt of $2,000.00 as surely the creditor who SOLD the account should have the account they SOLD removed and the company who bought the debt should have their purchase of the debt showing on the credit report Thank you

Do You Have a Question You'd Like Steve to Answer? Click Here.



Dear Dennis,

The original creditor should no longer report a balance due since they no longer owe the debt.

That would be an item to dispute with the credit reporting agency that lists that incorrect data.

To be clear, the creditor that sold the account would not have the account history removed but the balance owed to them corrected.

READ  I Would Like to Clear Up My Credit A.S.A.P. - Ginger

Choice1 Choice2 Choice3 Big Hug!
Get Out of Debt Guy - Twitter , Facebook
If you have a credit or debt question you'd like to ask just use the online form .

About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.


Share a Comment / Leave a Reply

Scroll to Top
%d bloggers like this: