I was wondering how long an OC has to keep records in case validation is requested?
I'm talking about if an account goes to collection, is paid off, then the OC continues to report sent to collection. As I understand the validation process, at any time you request validation from an OC or CA they must provide it as long as it is being reported, correct.
So if you try and validate accounts and they have goten rid of the paper evidence of the account for whatever reason, can you not have it removed from your record?
That is my thought. I know that the same people will state here that it has to stay on for seven years, blah, blah, but doesn't this seem like a loop hole to remove paid (or unpaid) debt reporting as negative if they can't validate?
Thanks for the input..
ADam
If the original credit sell of the debt to a collection agency, they hand over the records to the collection agency as they no longer remain the owner of the debt legally. However, if the OC do not sell off the debt, they need to keep the documents at least till the time the Statute of Limitation for the debt has expired because they have the legal right to sue you to the court to recover the debt till the SOL expiry and so they need to validate the debt till that time.
Yes, so long as the debt gets reported to the credit bureaus, the original creditor who owns the debt must keep the original documents with them in case they need to provide debt validation. After the debt is sold off to a CA, the OC stops reporting it to the credit bureaus but the outstanding debt, till date, with the original creditor stays there for seven years and six months from the date of your first delinquency.
If the the OC sell off the debt to the CA, they no longer require to validate the debt as they do not claim the debt. So the documents is transferred to the CA, who purchases the debt. Now the CA is required to validate the debt as well as provide proof to the debtor that they have purchased the debt.
ok, so...
So the debt is sold, is paid, but only the OC is reporting it as negative (Transferred to another lender is what it says). So this situation is a dead end to try and get it removed?? Can't I challange them in some way at all?
Thanks for ny info.
The Fair Credit Reporting Act allows a negative listing to remain in your report for seven years once it gets reported, even if you pay off the debt in full. Now, when a debt is sold off to a collection agency, the OC gets paid by the CA and so they have no incentive to remove the debt from your report. Now, if the CA lists their name in the report against the debt and if they agree to pay for deletion agreement, then the CA listing no longer remains in your report after the debt has been paid off. However, to remove the CA listing, you should always make the PFD agreement in writing.
There is no use in challenging the OC, because the FCRA allows the OC to have their name listed against the debt in your report.
OC selling acct over and over
But, what happens when an OC states that this account has been purchased or sold to 4 seperate collection agencies within a 4 month period. i continue to dispute ans account with HSBC but they dont validate it and have sent 4 letters in response stating it was sold everytime to a different collection agency. i have all the letters. in fact the first collection agency, IDT Carmel, they say it was sold to is now reported on my credit report as the origional creditor being IDT/HSBC. what rights do i have when i would think its not legal to sell the same account to different agencies. sounds like lies and documented fraud to me. what do i do now. how do i get it to stop and off my credit report. when i file a dispute with experian, they say each time that it has been verified. how can this be. i have send validation requests to each one of them and none give me anything to validate the account. it just gets resold to another collection agency. can i sue at this point?