If a debt is purchased by a collections agency, do both companies (old and new) show on your credit report?
Answers:
Very often, yes. The original company will report the debt as having been "sent to collections" or "charge off" if they sold it the collections agency at a loss. Elsewhere in the report the collections agency will often post under their own name too.
However, what you might be seeing is the same company showing in multiple locations. For example, on Equifax, the report shows all the collections accounts first and then later goes through all trade lines you have/had regardless of their status and lists them. You may just be seeing the the breakdown. If the former is true, then you are getting dinged twice for the same thing. If the latter is true, you are only getting dinged once.
Only one should show..you should not have two separate listing for the same debt.
Most times, yes. They are double-dipping into your credit score.
You can find out some interesting stuff at one of our webinars. We have them every Wednesday at 4pm eastern. We discuss quite a bit about credit repair. You can e-mail me if you would like and I'll be happy to send you an invitation.
Good Luck!
It may show up a few times because the Bureaus are not responsibile for maintaining your credit report but yours, the truth is it can be rectified because the information is considered to be old and no longer valid. The truth is, the big three, Experian, Tran Union, and Equifax, with all their net worth, still punish you by having the old informaiton on there developing a paper trail for others to see. You only it once even though it shows up twice depending on wich creditor or collections agency actually holds title too the debt. The truth is a lot of these 2nd and 3rd hand collections agencies buy the debt from the original creditor, when really they legal dont' own the debt because of all the legal documentation that colleciton agencies must go through in order to obtain the debt through there factoring process. The truth is there are over 483 to 500 laws that all collection agencies must go through before they even actually collect the debt but do you think they really do this? They don't! If they did then none of them would make money. The best thing I can tell you do is find someone reputable in your state that handls Credit Restoration, not Credit Repair, the term Credit Repair is a very dirty word now a days because a lot of people have been taken advantage of back in the day when the mortage boom was in affect. If you have any questions please call me so that we can discuss your options or if you just want informaiton as too how to resolve your issues.
Max Jackson
Credit Analyst
Mr. Good Credit
1:817:323:7343
It is possible that they might both show up but if they do you can dispute with all major credit bureaus showing that it is the same bill. Unfortunately their procedures require that they leave the most recently added instance of the bill which means that it will be on there 7 years from that time.
The trick is that the collection agency can then turn around and sell to another collection agency and then they also post against your credit report. If you are not careful there will be many companies listing the same bill.
It can be hard to clear up even if you pay the bill because you didn't pay the agency that once upon a time owned it and therefore they most likely didn't remove it. Taking the time to review all of their cases is costly and if a customer doesn't complain why bother.
Keep in mind that once a year you can get a truly free copy of your credit report from the 3 major bureaus by visiting https://www.annualcreditreport.com/cra/i...
Of course when you do this some of the bureaus will show you items you can add at a discount and typically they are truly cheaper this way but this is a government provided method and they are required by law to give you a report through this site once a year. It does go according to what month is associated with the government has set for your state.
My advise is to not do all of these at once. Experian and Equifax are used the most so I would do one of those and print your report and evaluate it for duplicated reported items.
Then once you determine any items that are duplicated or that are listed incorrectly in any way you can file a dispute for each item with that bureau online or in writing.
After that you can use another means to get a free copy of your report with the other companies if possible instead of wasting your once a year at one time.
If you have recently applied for anything and were denied it will allow for a free report and this includes a job that may have turned you down. Even if credit isn't the reason most of the time if the company requested your report you can ask for it and you will be given the report copy.
Do the same with them and dispute anything that looks wrong or duplicated. Be prepared to prove it. If you send it in writing send the proof up front.
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