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.



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

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