2006-09-28 10:28:49 · 4 answers · asked by pancho9514 2 in Business & Finance ➔ Credit
For example a cc that was closed/charged off bec of non payment is sold to somebody else. This should be removed correct?
2006-09-28 10:29:52 · update #1
Like the others said, it's not illegal to sell your account.
But, it is illegal for both the original creditor and the collection agency report a balance on your reports.
If the original creditor sells your account, they can still report it but it MUST be reported with a zero balance if the collection agency is also reporting.
You might want to go to the site I've listed and do some reading. Start in the newbie forum and then in the credit forum.
2006-09-28 10:46:58 · answer #1 · answered by echo 7 · 1⤊ 0⤋
No, I'm afraid it is perfectly legal. If, for example, your original debt was $1000. Your original creditor will have written off the debt from their accounts but may have recouped some of their loss by selling the debt to a specialist company for, say $200. They get money they would not have otherwise got, and the new company only has to recover a small amount of the original debt from you in orde to make a profit too.
When you signed the original agreement you would have probably signed, in the small print, to agree to this course of events happening.
Sorry, it's not what you want to hear but I hope everything works out for you.
2006-10-01 21:13:58 · answer #2 · answered by Andrew 4 · 0⤊ 0⤋
Nope, it happens all of the time. Professional collections agencies will buy the accounts for a percentage of the actual debt and attempt to collect that debt at the full rate that is owed.
2006-09-28 10:31:52 · answer #3 · answered by cabjr1961 4 · 1⤊ 0⤋
No such luck. They sell the debt to another company for so many cents on the dollar. You now owe the new company the money. They will hound you forever unless you settle with them. Plus it will be another bad mark on your credit report.
2006-09-28 10:32:56 · answer #4 · answered by WJVV 4 · 0⤊ 0⤋