Double Whammy?

[stormtrac]

I have something on my CR that looks to be a double posting. It is for a Credit Card Account from HSBC. It is listed twice, both by the bank and by a CA. Here are the two postings:

HSBC BANK #466309000906****

PO BOX 5253
CAROL STREAM , IL 60197
(800) 477-6000

Balance:
$0
Date Updated:
04/2008
High Balance:
$508
Credit Limit:
$0
Past Due:
$0
Pay Status:
>Charged Off as Bad Debt<
Account Type:
Revolving Account
Responsibility:
Individual Account
Date Opened:
02/2007
Date Closed:
07/2007
Loan Type: Credit Card
Remark:
Purchased by another lender
Estimated date that this item will be removed: 03/2014

PORTFOLIO RECOVERY #466309000906****

120 CORPORATE BLVD
NORFOLK , VA 23502
(800) 772-1413

Balance:
$662
Date Updated:
09/2011
Original Balance:
$549
Original Creditor:
HSBC
Past Due:
>$662<
Pay Status:
>Collection Account<
Account Type:
Open Account
Responsibility:
Individual Account
Loan Type: Factoring Company Account
Remark:
>Placed for collection<
Date placed for collection: [ 03/2008]
Estimated date that this item will be removed: 03/2014


My question is this: Can they list this twice on the CRs?

---------------------------
Chris

[Better Credit Reports]

Yes, it is legit as long as the original creditor shows $0 balance as in this case HSBC does and the collection agency shows the balance.

[Better Credit Reports]

To take it a step further....if the original contract allows for interest to be charged then the collection agency can continue tacking it on as allowed by law. Thus, you see the original balance of $549 increased up to $662.

[Lian]

It is legitimate even if the original creditor still shows a balance.

If the OC merely assigned the debt to the debt collector for collection and retained ownership, then the OC can continue to report the balance owed to them, and the debt collector can also report the balance they are attempting to collection.

It may appear as a double-reporting of the same thing, but it is not.

The OC reports the amount of the debt still owed to them, and only has to update this to $0 of they sell the debt.
The debt collector, while just an assignee, is not reporting debt owed to them. They are reporting debt upon which they are authorized to collect. They can be the same amount, or either can update to reflect accrual of additional legitimate interest and/or charges.

Only one can report ownership of debt, so if the OC sells the debt to the debt collector, the OC is required to update the debt balance to $0, and the reporting by the debt collector now reflects both the amount upon which they are collecting, and the amount they own.

There are, in fact, more than just two "whammies." There were probably also monthly delinquencies reported by the OC that are not reflected in the portion of the CR provided. The OC account also reflects a charge-off, which is a separate and additional derog. Then the collection.