Car Repo Showing $0 Balance?

[cherokeemom]

I co-signed for my son's car. Eventually he stopped paying. The car was repo'd and eventually the account was sold to an outside independent collection agency. Now I have this collection agency calling me (the third collection agency btw) to collect a balance when my credit report show's the item at a ZERO balance?? Has this happened to any one before, can you help explain this?? :confused: Thanks......

[Trish]

Yes, once the original creditor writes off the amount and sells/transfers the debt to a 3rd party collector, they will zero out the balance. It doesn't mean you don't owe the debt, it just means they wrote off the balance for tax purposes.

If the CA acct pops up on your CR, they will report the balance.