if a credit company returned a collection account back to the original crediter does it stay on credit report?

Answer 1

If a collection agency returns the account back to the original creditor - then they no longer have assignment of the account or they no longer own the account - so they can no longer legally report it or try to collect on it.

edit++++++
As for what mphsblue posted - having more than one collection agency reporting at the same time is illegal and may be actionable by the person who's reports they are reporting on.

If a collection agency does not own the account or does not have (or no longer has) assignment of the account and they continue or start to report - again it is illegal and may be actionable by the person who's reports they are reporting on.

If the account is an account that has a 7 year reporting period, it does not start at the DOLA.

DOLA is the last activity on the account, which may be the charge off, among other things. But not necessarily, and not usually the true obsolescence date.

The 7 year reporting period starts from the obsolescence date.
The obsolescence date for credit cards that would be the first time the account holder was 30 days late and never brought the account current leading to the charge off, for loans it would be from the last payment, for repo's it would be from the date of sale that created the deficiency, for medical it would be from the date of service.

As for the clueless CRA's remark - I would have to totally agree. The CRA's don't seem to be happy unless they can have an 85% (or higher) error rate.

Answer 2

I wouldn't take too much comfort from the answers you've gotten so far. Generally, a collection company takes on the debt from the creditor or internal collection agency of the creditor for 120 days. This is called 'first paper.' From there, it gets transferred back the where it came from and another agency may take it on. '2nd paper.' It goes on and on. Each of these companies reports it on your credit and it stays for 7 years from DLA. So, instead of it showing as one debt, it is reported on your credit several times. Never underestimate how clueless the CRA's are. What you find out when you get into the nitty gritty with these agencies is astounding.
Can't leave you with only bad news:
As these items are ping-ponged around and sold and transferred and aged the chances of getting them removed gets greater. You just need to know how to do it or deal with someone who DOES know. You can always try and dispute it. Go for it!

Answer 3

Thomas the account can only stay on your report for 7 years from the Date of Last Activity, the only legal way to update the DLA is to make a payment, doing so would reset the statute. Otherwise the other contributors are correct, take them to small claims court or hire a good FCRA attorney in your state to assist you if you can find one and worst case scenario dispute it but I recommend disputing in writing and not through the bureaus websites.

Answer 4

I have never heard of an outside collection company returning the account to the original creditor. They have bought your account and the original creditor has written it off their books. They are out of the picture once they sell it.