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I had an account that couldn't pay. It went to collections. Now, in my credit report, the original account shows status " derogatory" and the collections account shows "derogatory" also.
In the credit report's summary it says that I have 2 derogatory accounts! instead of one that has been bought.
So, if some other collection agency buys my debt again, would that change to 3 derogatory accounts?

Can I have my original creditor change the status to closed? instead of derogatory since the collection agency is also claiming "derogatory"?

2007-05-02 17:04:38 · 2 answers · asked by Mary 1 in Business & Finance Credit

2 answers

There can be two trade lines for the same account with a charge off - the original creditor can report and ONE collection agency can report.

If the collection agency has purchased the account and reports it, the original creditor MUST show a zero balance.

If the collection agency at some point sells the account to another collector or junk debt buyer, then they MUST remove their own trade line and the new owner of the debt can report.

2007-05-02 17:34:13 · answer #1 · answered by echo 7 · 1 0

This is normal and there is no way to get either report removed.

2007-05-02 17:07:44 · answer #2 · answered by Still reading 6 · 0 0

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