The simple answer to your question is no, two creditors should not report a balance due and owing on the same credit account. When a creditor sells an account to a new creditor, the first creditor cannot continue to report that you owe it money on the sold account (assuming that the entire balance of the account was sold). The old account will continue to appear on your credit report, but it should show a $0 balance. The new creditor’s listing should show the balance of the account.
In addition, the new creditor cannot legally change the information regarding the date first delinquency, which dictates when an account will fall off your report. One creditor selling the account to another is not considered “account activity” in the sense that it does not reset the clock for the account falling off your credit report. You can read a summary of your rights under the Fair Credit Reporting Act.
If any creditors are reporting inaccurate information to the credit bureaus, you may want to file disputes with the bureaus. First, you need to pull a copy of your report from each of the three bureaus; you can obtain a free copy of each credit report once every 12 months at AnnualCreditReport.com
Once you have a copy of each report, carefully review them for any information that you feel is inaccurate, then file disputes with the appropriate bureaus. Each credit bureau has a process for disputing inaccurate information, which can usually be done online. See the Federal Trade Commission document FTC Facts for Consumers: How to Dispute Credit Report Errors for more information.
For more information about credit scoring, credit reports, and how they affect you, I encourage you to visit the Bills.com Credit Resources page.
I hope this information helps you Find. Learn & Save.