Account Sold to...........

by Sean
(Tennessee)

If your account is sold (pennies on the dollar) to another agency. Are you responsible for the debt to the new owner?

If yes, and you pay the new owner of your account is this reflected on your credit report? Or does the charge off from the original creditor stay on your credit report?

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Dec 08, 2010
 Assignment of Debt
by: Gerri

Creditors and debt collectors frequently sell uncollected debts to collection agencies or "debt buyers." Whether or not you are "responsible" to them depends on several factors. For example, has the statute of limitations expired? Is the amount incorrect? Are they licensed in your state to collect debts (if required)? In addition, some consumers have successfully challenged lawsuits by debt buyers because they lack proper documentation when they sue debtors.

As to your other questions, if you pay a collection account that is listed on your credit report, it should be updated to reflect that it has been paid. This does not improve your credit in any way, unfortunately. And it does not affect the charged-off account that may remain on your credit report for up to seven years.

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