Debt “Purchased by another lender”?

[Lillian]

I’ve noticed a new negative item on my credit report from TdBank, that mentions in the Creditor statement: “Purchased by another lender“.

I want to resolve this item, but who should I pay? Do I pay Td? Do they still own the debt? It’s the only negative item on my report, and I intend to apply for a car loan.

Any good advice?

[Tracy Winters]

Best to contact TdBank

First, I assume that the debt does belong to you. You should know that paying won’t erase it from your credit report, and will not improve your score.

What paying does is to change the status of the item to “Paid”. When applying for a loan, it looks much better than unpaid debt (See why-pay-off-debts.html).

If TdBank sold your debt to a collection agency, the balance of this entry should show $0. They negative entry itself remains on your report. It will age off 7-1/2 years from the date of first delinquency (default).

You should be able to see that same debt under a name of a collection agency. I’m surprised you do not mention it. It may be that they have just sold it, and the collection agency didn’t report it yet. It will probably appear on your next report. That is just the way it works.

BTW, it’s unusual that TdBank sold the debt. They have their own in-house collection dept and are very aggressive. They normally just sue rather than sell the debt.

I’d try to contact TdBank and inquire with them. If it didn’t actually go to collection, settle it with them.

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