Are these collection accounts not reporting correctly unnecessarily hurting my credit score?

[Pap22]

The reason I'm trying to reconcile this stuff now is because I'm trying to get an auto loan, and I'm finding my options extremely limited.

1) Three of the four entries show the balance as $0, but do not explicitly say "CLOSED". A loan officer I spoke to yesterday say I should get this taken care of because so my credit score improves. Is he correct?

2) The two US Dept of Education entries are both from the same exact loan. Isn't one a duplicate entry and should be deleted? Which one?

3) The two Bank of America/MBNA accounts are both from the same exact credit card account, but the story is that when I originally contacted Bank of America to pay off the loan in full, due to some "miscommunication" the balance paid did not include the post-writeoff "interest accrued" or something of $392.  I found out about this two years later when BoA decided to send that $392 to a collection agency, who prompty sent me an invoice, which I paid.

BANK OF AMERICA (from MBNA bank)
Address: PO BOX 17054 WILMINGTON, DE 19850 (800) 421-2110
Account Number: 431302499776....
Status: Account charged off. $4,384 written off.

Status Details: This account is scheduled to continue on record until Sep 2011.
Date Opened: 06/2000
Reported Since: 10/2000
Date of Status: 05/2005
Last Reported: 12/2005
Type: Revolving
Terms: NA
Monthly Payment: $0
Responsibility: Individual
Credit Limit/Original Amount: $4,500
High Balance: $4,384
Recent Balance: $0 as of 12/2005
Recent Payment: $0
Creditor's Statement: Purchased by another lender.
Account History:

Charge Off as of Dec 2005, Sep 2005, May 2005
150 days past due as of May 2005
120 days past due as of Apr 2005, Mar 2005
90 days past due as of Feb 2005
60 days past due as of Jan 2005, May 2004, Jan 2004
30 days past due as of Dec 2004, Apr 2004, Dec 2003

PORTFOLIO RECOVERY ASSOCIATES (from MBNA bank)
Address: 120 CORPORATE BLVD STE 100 NORFOLK, VA 23502
Account Number: 431302499776....
Original Creditor: MBNA AMERICA BANK
Status: Paid,Closed.
Status Details: This item was verified and updated on Aug 2007.
Date Opened: 12/2005
Reported Since: 08/2007
Date of Status: 08/2007
Last Reported: 08/2007
Type: Installment
Terms: 1 Months
Monthly Payment: $0
Responsibility: Individual
Credit Limit/Original Amount: $392
High Balance: NA
Recent Balance: NA
Recent Payment: NA
Account History: Collection as of Aug 2007


CBC/US DEPARTMENT OF EDUCATION
Address: PO BOX 4222 IOWA CITY, IA 52244
Account Number: 3200504019938 ....
Status: Paid in settlement.
Status Details: This account is scheduled to continue on record until Jan 2012.
Date Opened: 04/2003
Reported Since: 09/2005
Date of Status: 04/2006
Last Reported: 04/2006
Type: Installment
Terms: 36 Months
Monthly Payment: $0
Responsibility: Individual
Credit Limit/Original Amount: $3,552
High Balance: NA
Recent Balance: NA
Recent Payment: NA
Creditor's Statement: Account legally paid in full for less than full balance.
Account History: Collection as of Sep 2005 to Mar 2006


U.S. DEPT OF ED - DIRECT LOANS
Address: PO BOX 5609 GREENVILLE, TX 75403 (800) 848-0979
Account Number: 3200504019938 ....
Status: Collection account.
Status Details: This account is scheduled to continue on record until Nov 2011.
Date Opened: 04/2003
Reported Since: 07/2005
Date of Status: 07/2005
Last Reported: 07/2005
Type: Installment
Terms: 83 Months
Monthly Payment: $0
Responsibility: Individual
Credit Limit/Original Amount: $3,500
High Balance: NA
Recent Balance: $0 as of 07/2005
Recent Payment: $0
Account History: Collection as of Jul 2005

[RobertEG]

For the CC account with original creditor BOA, what you have shown is the posting by the OC, not the CA.  When the OC sold the debt to the CA, Portfolio REcover, then the OC no longer holds the debt, so the OC properly updates to show a $0 balance.  But the debt has not gone away.  When the CA reported, they would then post the amount amount of the unpad debt.  Did the CA additinally post a CA to your CR for this debt?

This account is a very serious drag on your credit score.  You have 10 separate reported monthly derogs on the OC account that each remain for dates ranging from 12/2010 up to 5/2012.  Seven of these are major derogs.  Then the charge-off and CA each added separate, major derog to you CR, which will probably each remain, from what appears to be your DOFD on the OC account of 12/2003, until 6/2011.

They may not show "closed," but they are.  When an OC does a CO, that closes the active status of the account.  When you pay a CA, that closes out the debt.

FICO does not score based on whether a debt is paid, it scores on whether not a delinquency occurs in payment of debt.  I would not worry about a lack of any explicit statement of "closed."

As for the education loan, it appears that the posted collections do in fact relate to the same debt.  Direct Loans (CA1) apparently purchased the debt from your DoEd  lendor in 7/2005, and then reported it to the CRA as a collection. They then apparently sold the debt to CBC (CA2), and you settled with them.  So zero current debt.  I am guessing, based on the dates you have profived, that the DOFD on on the Educ collection is probably sometime in mid-2004.

In that event,  CA1 should have reported deletion of that collection from your CR, as only CA can remain at a time.

In summary, you apparently have paid these two debts, one the CC debt and the other the revolding debt, so dont have debt hanging over your head.

Everything is "closed," if you want to use that terminology, with no payments due.  So I see no substantive inaccuracires in any of the "accounts" you have referred to and no reason to contest accuracy of information in your CR EXCEPT for the continued inclusion of CA1.

As an aside, are you sure the scores you are receiving are actual FICO scores?  With 10 prior monthly account delinguencies, 7 of which are major, and with an additional CO and possibly two CA's being reported, a FICO score in the upper 600's would be a real surprise to me....

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[Pap22]

Thank you for taking the time to read my post.  I will try to get one of the DoEd collection accounts deleted.

As surprising as it may seem, yes, those are MyFico.com FICO scores. On Friday 2010-04-30, the loan officer told me over the phone that my credit score (based on Experian) was 703.  And even though my latest Equifax pull shows 670, I expect the score to currently be 30 points higher due to my reducing my credit utilization from 47% in March to 4% in April (the same thing that caused my TransUnion score to jump 30 points since the last pull).  Perhaps further surprising is that fact that I also have 3 other collection accounts (same age as the others).

On top of all that, I managed to get approved for a Discover More card two weeks ago, and my local credit union just approved me for a $12K used car loan for 60mo@6.74% APR.  Then again, Wells Fargo denied me any loan.

I started opening revolving accounts like crazy in 2008 in the hopes of diluting bad payment history with good payment history. Including Discover, I now have 7 revolving accounts in good standing. Perhaps I should be a case study of some sort.