They can both report the debt but only one can report a balance.
The OC should be reporting a $0 balance and that the debt was transferred or sold. I don't believe they have to report the debt as paid UNLESS the CA was only assigned the debt.....and collecting on behalf of the OC.
It sounds like the debt was sold to the CA. If that's the case, then all they have to report is that is was charged off/written off. Not paid.
Hope that makes sense.
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