05Special Condition Codes
Status Code 05: Account Transferred
Account transferred to another office or sold to another lender
Overview
- Used when an account is sold or transferred to another creditor
- The original creditor reports this status when transferring the account
- The new creditor will establish a new tradeline
- Should include K2 segment with purchaser/transferee information when applicable
Common Use Cases
- 1Debt sold to a collection agency
- 2Account transferred during company merger or acquisition
- 3Portfolio sale to another financial institution
Reporting Guidelines
- Report final balance as zero after transfer
- Include Date of Account Information reflecting transfer date
- Use K2 segment to identify the new creditor when required
Other Special Condition Codes
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