Can a company that acquired my defaulted credit card account consistently delete and add a new charge off to my credit report?

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Can a company that acquired my defaulted credit card account consistently delete and add a new charge off to my credit report?

I lost my job a couple years ago and could not pay my accounts. I acquired a job and have been paying my accounts since then and not late for over a year now. An investment company purchased and outsourced my account to another collection agency. Every month, the investment company deletes the previous months charge off and adds a new charge off to the current month. This is consistently dropping my score even though I am paying. It’s as though the more I pay the worse my score gets. Is this legal? I average a drop of 20 points a month. This one account has driven me into the poor category.

Asked on June 26, 2011 under Bankruptcy Law, Texas

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

If there is a new credit card company that bought your credit card account from another credit card cmpany, it can add and delete charges from the balance allegedly owed. Whether or not it is allowed contractually under the credit card agreement that you signed for the card or the laws of your State is a different matter.

If you are making the minimum monthly payments on the credit card per each month's invoice which is typically the accrued interest that is arising on a monthly basis, at worst scenario, the amount owed would remain the same with the exception of the monthly interest.

It sounds that you need to speak with a representative of this credit card company to see what you can do to reduce the debt and eliminate the frustration you have over the situation.

 


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