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Closed vs Collection

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Anon
New Visitor

Closed vs Collection

Hellooooooo, 


This last year I have actively been attacking my bad credit from old dumb mistakes. So I have 5 collections left to remove but I recently pulled my credit again and I noticed a change. My collection accounts are also being reported as closed accounts but not with the OC but the collection agency. Would this be considered double reporting? Also, these same collection accounts are being reported with a past due balance or open account which I know they can't do, I've disputed but it came back verified. How is that possible? Thank you in advance for any feedback!!! Smiley Happy 

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1 REPLY 1
TheKid2
Established Contributor

Re: Closed vs Collection

Collection Accounts are special reporting animals, they are very penal on a report. There are different types of CAs, in some cases, they buy the debt at a discount and take all the responsibility for collecting it. In other cases, they represent the Original Creditor and try to collect for them. In all cases, the original account will be listed on your report. Once you settle a CA it will work through the process of updating properly. Do some reading here as many CAs will do Pay For Delete, and remove the collection account if you pay it off. When that happens the original account updates to paid, but the CA disappears which is a benefit to your scores. Your original account will stay on the report for 7 years.

 

If you owe the money, don't dispute, it will most likely just make things worse as your report gets updated as verified and many times additional negative info appears. Work with the collection agency and /or creditor to get the debts paid off, don't file disputes.

 

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