Credit reports: The original creditor and debt collector are both on my report – is this legal?

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“Credit reports: The original creditor and debt collector are both on my report – is this legal?”

Let’s say that I owe Discover $5,000, and that’s on my credit report. Assuming that’s accurate, that’s fair.
Well, what if Discover sends that debt to someone else? That happens sometimes.
However, what if that debt collector also shows up on my report? That’ll raise our eyebrows a little bit, and we should definitely look into that.
Sometimes we see cases where the credit card company will have the debt on your report, and the debt collector will have the debt on your report.
Now, you only owe X amount of money.  In my example, $5,000.  But what if both the debt collector and Discover show you owing $5,000?

This means that either the credit card company, or the debt collector, are doing something wrong.

That’s where we dispute with them under the FCRA (Fair Credit Reporting Act) and get this figured out.
If you’re seeing multiple charges for one debt, then you should definitely work on getting this false information removed from your reports.
Because you only owe one of these companies one amount. You don’t owe both of them money.
So you have a few options.
First, dispute only the original creditor balance because the debt collector says it has the debt.
Second, dispute only the debt collector balance as the original creditor says it still has the debt.
Or you could dispute both.  Send a dispute letter to the credit reporting agencies and also to the creditor and collector.  Explain that you want some answers as you obviously don’t owe $10,000 on a single $5,000 debt.  This way, whichever one is wrong will be removed.  (If original creditor, this means normally that the amount owed will be shown as “zero” which is correct).
Hope this is helpful to you!

You’re welcome to call our office at 1-205-879-2447 if you have any questions and live in Alabama.

If you live elsewhere, you should get in touch with a consumer attorney in your state.

We’d be glad to help you in any way we can.
Thanks for reading, and have a great day!
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