Why is a new company showing up on my credit report?

In some cases, Happy Money sells charged off loans to a debt buyer.

When a loan is charged off, it means the account has been closed and the remaining balance was written off as a loss after an extended period of missed payments. Even though the account is closed, the balance is still owed.

Debt buyers specialize in working with customers whose accounts are in this status and can provide options to resolve the balance directly with them. This is a standard financial practice that allows us to recover a portion of the loss and continue offering affordable lending options to other customers.

Once a loan is sold, the debt buyer becomes the new owner of the account and is responsible for collecting and reporting on it going forward. You would have received a notice from us at the time of sale with your balance and contact information for the new owner.

It can take up to 90 days for credit bureaus to update your credit report to reflect the new company’s name.

If you believe your credit report is inaccurate:

• For current reporting issues or questions about the sold account, please contact or submit a dispute directly with the new owner, since they now manage the account.
• If you believe your loan was sold in error (for example, it should not have been charged off or the balance was incorrect before the sale), you can submit a dispute with Happy Money. Please see How to Dispute Errors on Your Credit Report for more information.