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Can the Creditor and Collection Agency Both Show the Same Account On My Credit Report? – John

Written by Steve Rhode

“Dear Steve,

Have settlement letter from collection company and will complete the last payment in Oct.

The original creditor continues to show the remaining balance of debt and reduces it with each payment that I make 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 ?

Thanks for all you do


Dear John,

Well it seems what you describing is the your account is with RC Willey and you fell behind. They must have assigned the account out to a third-party collection company who is collecting payment from you.

In that case your account should show the current balance with RC Willey, which it does, and that the account is in collection with the collection agency, which it does.

thumb upSo it seems to be reporting accurately. When the account is finally settled there should be no new collection activity reported and the part of the debt you repaid to RC Willey should be reported as paid with the delinquent history and the part of the debt that was forgiven will show as a bad debt that was written off.

Whatever you do, never, ever, ever lose that settlement letter and proof of your settlement payments. Keep both of those things with all your other important papers and never let them go. You never know when in the future someone might claim you still owe the part of the debt forgiven and the only way to prove it would be with that documentation.

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

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.


  • Steve is correct , they have not sold the debt apparently. It still seems odd that they both can report the debt. The agreement in the settlement letter is that the collection company will delete the collection from all 3 credit bureaus . I will then need to ask if R.C. will do the same. That will be God’s business all I can do is take the steps.

  • Correct me if I am wrong, but once the original creditor sells the debt to a third party collection company, it should report as CO zero balance with the OC. Last time I checked you couldn’t report the same amount twice on a credit report with two seperate companies.

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