Jump to content

Paid collections


JUPITER2928
 Share

Recommended Posts


9 minutes ago, JUPITER2928 said:

Is there any benefit or downside attempting to remove a paid collection? 

When did it last update on your report?

 

If it is updating monthly, then no, there is no real downside.  However, if it has been some time since it last updated, kicking the hornet's nest can result in a score decrease on many models because it becomes a more recent derogatory reporting. 

Link to comment
Share on other sites

2 hours ago, JUPITER2928 said:

Is there any benefit or downside attempting to remove a paid collection? 

is there anything incorrect in the reporting on paper copies of your four major consumer credit reports? When is it due to be removed?

Link to comment
Share on other sites

13 minutes ago, 99leftbaloons said:

Working to have a paid NCA account removed; no luck so far. Disputed twice, came back 'verified.' Really need to get this removed as it's the last baddie on a couple CR's.

What specific errors did you cite in a tailored and well-written letter?

Link to comment
Share on other sites

The amounts, other than balance and/or past due, are incorrect.
The credit limit and/or high balance are/is incorrect.
 
Admit to submitting online...Letter will now go out. (Now to decide what constitutes a 'well-written letter' when disputing a paid chargeoff...)
Edited by 99leftbaloons
Add
Link to comment
Share on other sites

On 3/16/2022 at 8:27 AM, 99leftbaloons said:

Working to have a paid NCA account removed; no luck so far. Disputed twice, came back 'verified.' Really need to get this removed as it's the last baddie on a couple CR's.

So NCA is now reporting my paid account as a collection. Decided to go with a complaint to the Consumer Financial Protection Bureau (CFPB) about this. The account is NOT in collections; it was paid-as-agreed, so the account being reported as 'Collections' seems incorrect. (And it is 'costing me' 50+ points on all my bureaus.)

Good approach/bad approach/lazy approach? Thanks!

Link to comment
Share on other sites

Who or what is NCA?  And are you looking at paper reports?

 

If this is a third-party reporting, then collection may very well BE correct as account type.  A paid collection remains a collection.  Your point loss (you do not say what model is showing this loss) would very likely be more attributable to an updating of the tradeline to a current month. 

Link to comment
Share on other sites

1 hour ago, centex said:

Who or what is NCA?  And are you looking at paper reports?

 

If this is a third-party reporting, then collection may very well BE correct as account type.  A paid collection remains a collection.  Your point loss (you do not say what model is showing this loss) would very likely be more attributable to an updating of the tradeline to a current month. 

NCA = National Credit Adjusters. Thanks for the reply:  agree on the date. So, if I paid the debt collector (in this case, NCA) off in April 2017, should it not be reporting as in collections this month?

Link to comment
Share on other sites

25 minutes ago, 99leftbaloons said:

NCA = National Credit Adjusters. Thanks for the reply:  agree on the date. So, if I paid the debt collector (in this case, NCA) off in April 2017, should it not be reporting as in collections this month?

A paid collection is STILL a collection.  It isn't ever going to be an R1 or I1 like a perfectly managed account would be.  And the account type will never change from Collection.

 

The mere fact that it has updated recently is the unintended consequence that we tend to advise people to be aware of as they formulate a plan of action...

Link to comment
Share on other sites

18 hours ago, centex said:

A paid collection is STILL a collection.  It isn't ever going to be an R1 or I1 like a perfectly managed account would be.  And the account type will never change from Collection.

 

The mere fact that it has updated recently is the unintended consequence that we tend to advise people to be aware of as they formulate a plan of action...

Yes on the unintended consequence. NCA responded very quickly to my CFPB complaint. I'm reading up on Witt vs Experian, the Rosenthal Fair Debt Collection Practices Act (for California residents), etc. Logically, to me, having something being reported as in 'Collections' when there is nothing to collect as the debt has been paid in full, makes no sense:  and I know logic doesn't always apply to the law, which is where I need to find 'relief' as it were.

Anyone use info from the below site to dispute past debts? Some very interesting cases cited:
https://casetext.com/statute/united-states-code/title-15-commerce-and-trade/chapter-41-consumer-credit-protection/subchapter-v-debt-collection-practices/section-1692g-validation-of-debts/analysis?citingPage=1&sort=relevance

Edited by 99leftbaloons
Add
Link to comment
Share on other sites

2 hours ago, 99leftbaloons said:

Logically, to me, having something being reported as in 'Collections' when there is nothing to collect as the debt has been paid in full, makes no sense:


Once an account is closed sent to collection, it becomes a collection account.  Our credit reports are a history.  Paying a collection account does not change the history and fact that it was in collection when it was paid.  

Link to comment
Share on other sites

40 minutes ago, Bluesie58 said:


Once an account is closed sent to collection, it becomes a collection account.  Our credit reports are a history.  Paying a collection account does not change the history and fact that it was in collection when it was paid.  

Understand:  I'm not trying to change the history just 'freeze' the reporting so to speak. There is no longer a collection as there is nothing to collect on.

Link to comment
Share on other sites

1 hour ago, 99leftbaloons said:

Understand:  I'm not trying to change the history just 'freeze' the reporting so to speak. There is no longer a collection as there is nothing to collect on.

if you pay a mortgage in full shouldn't the tradeline still report as a mortgage?

Link to comment
Share on other sites

24 minutes ago, hegemony said:

if you pay a mortgage in full shouldn't the tradeline still report as a mortgage?

Understand, agree:  but the difference is that one has 'frozen' in the sense that there is nothing left to report on. When a mortgage is paid off, the reporting ends

I know I'm throwing lots of stuff against the wall, and really appreciate the input/feedback/comments.

Link to comment
Share on other sites

3 hours ago, 99leftbaloons said:

Understand:  I'm not trying to change the history just 'freeze' the reporting so to speak. There is no longer a collection as there is nothing to collect on.

Is NCA still updating each month?

Link to comment
Share on other sites

6 hours ago, 99leftbaloons said:

 

Can't speak for others here, but "no".  I presume you think there are one or more case references that might be helpful in your circumstance (?).  If you're looking for feedback, you should cite what specific case(s) are germane.

Link to comment
Share on other sites

Again, really appreciate all the input/comments - and @hdporter, I'm going through the cases. Some very interesting challenges...So I looked at my CR's and reporting stopped in 3/2018 and was restarted in 2/2022. Is this legal? Almost seems like a reinsertion.

 

- 'Date of Last Activity' is different between bureaus as is the 'Last Payment.'
- Account Status = 'Closed'

- Past Due Amount = '$0'

Link to comment
Share on other sites

No creditor is required to report account history to the CRA's.  The fact that one reported, discontinued for a period, and then resumed, in itself is not a violation of the FCRA.

 

"Reinsertion" is a very specific reference to a case where data is removed from a tradeline through a dispute and the creditor subsequently reports the same inaccuracy.  The only circumstance under which such reinsertion is permissible is where the creditor has subsequently verified the accuracy of that information.  The creditor must notify you of the reinsertion within 5 days.  If a creditor has reinserted inaccurate information, then the act is a FCRA violation.

 

With regard to disparities in tradeline data between CRA's on a collection account (DLA / Last Payment), if you have records that document dates different that have been reported, you have cause for a dispute.  Upon dispute, the creditor can elect to modify their reporting accordingly to close out the dispute. 

 

While these particular discrepancies have no impact on the overall reporting (reporting time frame is solely determined by DOFD) and the credit score impact of the adverse tradeline, many choose to pursue such disputes in hope that the creditor won't respond to the dispute, whereupon the CRA must delete the tradeline.  (Subsequent to such removal, the creditor has the right to report/validate the information and restore the tradeline, provided the information is accurate.  In practice, this almost never happens.)

Link to comment
Share on other sites

1 hour ago, 99leftbaloons said:

 

 

- 'Date of Last Activity' is different between bureaus as is the 'Last Payment.'

 

the data reported does not have to match across the four major CRAs. If it doesn't it just means at least one CRA is reporting inaccurate data. (or rather, the data furnisher is not providing accuraate data)

Link to comment
Share on other sites

15 hours ago, 99leftbaloons said:

Again, really appreciate all the input/comments - and @hdporter, I'm going through the cases. Some very interesting challenges...So I looked at my CR's and reporting stopped in 3/2018 and was restarted in 2/2022. Is this legal? Almost seems like a reinsertion.

 

- 'Date of Last Activity' is different between bureaus as is the 'Last Payment.'
- Account Status = 'Closed'

- Past Due Amount = '$0'

Not a reinsertion at all.  It would seem to have gone dormant until you kicked the hornets nest with a dispute.  That triggered a new report update...

 

When you say that "date of last activity" is different, how different are you seeing?  Some bureaus use a full date while others will basically be [month]/01/[year].  Something that reports as March 01, 2022 is not different on a credit report for legal purposes than March 12, 2022.  The ONLY time specific dates become relevant is in litigation when literal days can matter as to whether a court has jurisdiction under the controlling limitations expiry statute.  

Link to comment
Share on other sites

On 3/25/2022 at 5:35 AM, Bluesie58 said:

I apologize if you already posted this information, but what is the date of first delinquency (date account went into default and never returned to a current status) with the OC?

Sent to collections 1/14/2017; debt buyer purchase date of 3/2/2017.
TU date of last activity:  2/19/2018
Experian date of last activity:  2/1/2022
Equifax date of last activity:  11/1/2016 (had prior loan w/same lender). So EQ seems to be 'mixing' the two loans

Edited by 99leftbaloons
Add
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share




  • Member Statistics

    • Total Members
      185056
    • Most Online
      2046

    Newest Member
    aresw
    Joined
×
×
  • Create New...

Important Information

Guidelines