Do you have a question about consumer credit? You may find an immediate answer by using the search engine. If you can't find what you're looking for, please fill out the form, being as specific as possible.
Please note: The Ask Experian team cannot respond to each question individually. However, if your question is of interest to a wide audience of consumers, the Experian team will include it in a future column.
Our policies
The information contained in this column if for educational purposes only and is not legal advice.
You should consult your own attorney or seek specific advice from a legal professional regarding
your particular situation.
Please understand that Experian policies change over time. Column responses reflect Experian policy at the time of writing. While maintained for your information, archived responses may not reflect current Experian policy.
Credit Advice
Topics addressed on February 2, 2011:
Collection accounts may be for more than original debt
Dear Experian,
When an account has been purchased by another lender, or transferred to another lender, and the new lender starts collections on the account, can the “Credit limit/Original amount” that is been recovered be higher than the amount shown on the credit report? This amount has not changed from the original lender to the new one.
- CTR
Dear CTR,
An unpaid balance continues to accumulate interest and fees. When a collection agency purchases the unpaid debt, it typically adds the fees and interest to the unpaid debt and reports the new total amount to your report.
As a result, the total amount of the debt may be more than the original loan amount as reported by the first lender.
Thanks for asking.
- The "Ask Experian" team