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question about a collection reported

New Member

question about a collection reported

Here is my situation. I have been working on building my credit score and successfully got my score into the high 700's thanks to information found in this community! I checked on it last month and all of a sudden it was mid 600's! I took a hit of over 100 points. I looked into it and found out that an old (from 2009) reoccurring monthly bill was reported as a balance due (never paid, sent to collection). It was supossed be paid by the Ex in our divorce settlement but never was. Ugh. So now my question is, once I pay this, how long will it take to not negatively affect my score? And, how do I go about making sure it gets reported paid once I pay it? Thanks everyone, this site has helped me a lot!!

Message 1 of 6
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Re: question about a collection reported


NPrince wrote:

Here is my situation. I have been working on building my credit score and successfully got my score into the high 700's thanks to information found in this community! I checked on it last month and all of a sudden it was mid 600's! I took a hit of over 100 points. I looked into it and found out that an old (from 2009) reoccurring monthly bill was reported as a balance due (never paid, sent to collection). It was supossed be paid by the Ex in our divorce settlement but never was. Ugh. So now my question is, once I pay this, how long will it take to not negatively affect my score? And, how do I go about making sure it gets reported paid once I pay it? Thanks everyone, this site has helped me a lot!!


If the DoFD was in 2009 its illegal to continue to report it its past the max 7.5 yrs allowed by law. At this point its most likely past states SOL as well so I would just offer them a percentage and not full payment at this late date. You need to verify it was in fact in 09 that it went delinquent and If so I would dispute it as past time for reporting. If they have actually reaged it then a complaint to the CFPB would be in order as that would be illegal as well.

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Message 2 of 6
New Member

Re: question about a collection reported

Thank yo for the information. I called the collection agency to find out details and found out it was not closed and reported as delinquent until 2012, so I guess they are still within their rightfull time frame to report it.  I am currently trying to ge a hold of the original lender to find out what exactly it is for before I pay it off, as I thought it had been paid off.  So now my question is, once I do pay this, can it be removed from my credit report? Am I better off paying the original lender or the collection agency since they are the ones that reported it? Thank you in adavance!

Message 3 of 6
Community Leader
Epic Contributor

Re: question about a collection reported

Once a debt collector reports a collection, they are required under FCRA 623(a)(5) to obtain the date of first delinquency under the OC account, and report that DOFD to the CRA no later than 90 days after they have reported their collection.

 

The reported DOFD, and that date alone, determines when their reported collection must be excluded by the CRA from any credit report they issue.

When the collection was reported to the CRA is irrelevant to its ultimate credit report exclusion date.

Once a period of 7 years plus 180 days from the DOFD has expired, no collection on the debt may continue to be included in any credit report issued by a CRA.

FCRA 605(c).

Message 4 of 6
New Member

Re: question about a collection reported

Ok so I think what I am understanding is, since the account was closed as delinquent in August of 2012, that is the beginning of the 7.5 year reporting window? I just got of the phone with the original lender and they had a detailed explaination of the charges so I will indeed pay what I owe. How should I best approach the collection agency in order to ensure they remove the collection once paid, or is that even possible? Do I just have to live with the negitive impact until it hits the 7.5 year point and is no longer able to be reported?

Message 5 of 6
Community Leader
Epic Contributor

Re: question about a collection reported

The DOFD is defined as the date that you first became delinquent on the account with the creditor, and thereafter remained delinquent until the collection was opened.

It is not necessarily the date of your first delinquency on the account.

 

If a delinquent account is returned to good-standing before a charge-off or collection is taken, then there is no longer a DOFD.

A new DOFD is set when a new first delinquency occurs, and the delinquency continues until a collection or charge-off is taken.

 

Paying a debt is not basis for deletion of a reported collection.

You can request the debt collector to voluntarily report deletion of their collection, but any such deletion is voluntary on their part, and CRA policy instructs them not to delete based on payment of the debt.

Message 6 of 6