CA just now began reporting deliquency on credit months after payoff

[Anonymous]

Last December I was getting calls from almost every one of my family members telling me a CA had been calling them looking for me (this was the first I had ever heard of them, they had NOT been reporting on my credit). I called them back and ended up arranging a payment plan with them, I gave them my debit card and they automatically withdrew $84 a month for 6 months. The last payment was May 2012 and I never heard from them again. I cringe when I think about this because this was my first run in with a collection agency and I was mortified they were calling my relatives, including a step parent's sibling who I have met once 10+ years ago. But anyway, Ibought all three credit reports in the end of January because I was getting alerts from CSesame/CKarma that there had been a change on my credit and I couldn't think of what it could be. As it goes, this CA that I had paid off in June decided they were going to report this to all three bureaus over 6 months after it was paid! Can they do this? Not to mention that on my Experian report they have it to look like they were the original creditor. Technically this should fall off the report in May of this year but my blood is boiling with the fact they just now are reporting it after I have gone and paid it.

[RobertEG]

Unfortunately, yes they can.

They had legitimate collection authority, and can report that fact at any time.  Satisfaction of the debt does not negate the fact that they had collection authority.

They are also required to report the DOFD on the OC account, which provides the CRAs with the date upon which to calculate its required credit report exclusion date of 7 yrs + 6 mos thereafter.

CRAs usually use credit reporting as a tool to assist in collection, and dont have a real business purpose for reporting after paid, so usually wont.

However, they are not precluded from doing so.

In their reporting, they must show the debt balance under their collection as $0.

[Anonymous]

I see.. That doesn't seem fair, but I guess no one ever said it was. I cant understand why they would chose to report it after all wais paid and it is only vaild for a few more months anyway, my guess is just because they can. Strange.. Thanks for your reply!