Can One Debt Be Listed Multiple Times?
My question involves collection proceedings in the State of: NY
Is it legal for a debt to be listed more then once on my credit report?
I had a debt with a credit card company, they sold it to a collection agency.
I have since paid it off to the collection agency.
My problem is that it is listed as two separate items on my credit profile, once from the credit card company and once from the collection agency.
Is there anything i can do about this?
Re: Can One Debt Be Listed Multiple Times?
Although it does seem like you are correct , well you are not.
YES, a bank can not list the debt more then once. HOWEVER, if they sell the debt then the new creditor can post account with a NEW account number on your credit report.
The bank has charged you off as a loss. They are NOW done reporting on you. You never paid them.
NOW a collection agency purcheses the charge off (perfectly legal) and goes after you for the debt (again very legal)
No laws broken here, sorry
Re: Can One Debt Be Listed Multiple Times?
Thanks.
I was afraid that would be the answer, I figured it couldn't hurt to ask...
Re: Can One Debt Be Listed Multiple Times?
That is not correct. A company that purchases a debt that is already in default for the purpose of collecting the delinquent debt is a debt collector.
Pollice v. National Tax Funding, L.P., 225 F.3d 379 (3d Cir. 2000). The purchaser of sewer and water service debts from a municipality, after default, was a debt collector for the purposes of the FDCPA.
Brannan v. United Student Aid Funds, Inc., 94 F.3d 1260 (9th Cir. 1996), cert. denied, 521 U.S. 1106 and 521 U.S. 1111 (1997). A student loan guaranty agency which acquired the loan after default in order to pursue collection was a debt collector under § 1692a(6).
Asset Acceptance Corp. v. Robinson, 625 N.W.2d 804 (Mich. Ct. App. 2001). An entity that purchases a debt in default is a ‘‘debt collector’’ as defined by the FDCPA.
Harris v. BWS Credit Servs., Inc., Clearinghouse No. 27,693 (D. Neb. 1980) (order on motions to dismiss). A motion to dismiss based on the assertion that the debt collection agency owned the debts was denied. The term ‘‘debt collector’’ is broad enough to cover persons collecting debts they own, and the record is not clear on whether the collector is covered or not.
Long v. G.C. Servs. Corp., Clearinghouse No. 31,345 (S.D. Ga. 1979). Collector’s motion to dismiss was denied where collector argued it was not a ‘‘debt collector’’ within § 1692a(6) since it purchased the debt which it sought to collect.
The best discussion available on the subject is What Constitutes "Debt Collector" for Purposes of Fair Debt Collection Practices Act, 173 A.L.R. Fed. 223.
Re: Can One Debt Be Listed Multiple Times?
Quote:
Quoting
divemedic
That is not correct. A company that purchases a debt that is already in default for the purpose of collecting the delinquent debt is a debt collector.
What does this mean practically speaking?
Does this mean the 2nd company should not be reporting it a 2nd time?
Re: Can One Debt Be Listed Multiple Times?
It means that each company collecting on the debt can report it, as long as that tradeline is complete and accurate. Technically, that same trade can be listed an unlimited amount of times on your report. This is one of the loopholes in the system that is designed to make more money for the bank.
Think about this: the worse everyone's credit is, the more banks make in interest and fees. It is in the best interest of the banks and the credit reporting agencies to make everyone's credit as poor as possible.