Can the Original Creditor and Debt Collector Report the Same Account Twice on My Credit Report? – John

“Dear Steve,

Can the original debt grantor continue to report your debt to credit bureau’s after they have turned the debt over to a collection law firm. They show one balance the debt grantor and the collection company shows a larger balance.


money narrow

Dear John,

There are a number of issues here. The first is if the collection company is just acting as an agent of the original creditor or is actually the buyer of the old debt. For the sake of this post I’m going to assume they are just a third party collection company.

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.

Debt collectors sometimes will list the original account as a new account to the credit bureaus. This is not permitted but happens a lot.

When they do they will adjust the balance and also the date of delinquency to make it look like a new debt and then try to leverage the entry to get a payment. Under the Fair Debt Collection Practices Act a debt collector cannot knowingly report false information to the credit bureaus. And the Fair Credit Reporting Act does not look at this favorably as well.

There are a couple of issues to consider here as well.

  • Has the debt past the statute of limitations in your state? If so they debt collector may not be able to sue you over the debt.
  • Is the balance the debt collector is claiming even an accurate balance?

If you do not believe the debt is being reported accurately then before you acknowledge you owe the debt you should dispute it and ask to have the debt verified. For a step-by-step guide on what to do, click here.

Let me know the results of your request to dispute and validate the debt and we can take it from there.

Please post your responses and follow-up messages to me on this in the comments section below.

Damon Day - Pro Debt Coach

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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.
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