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Closed Collections Accounts

Established Contributor

Closed Collections Accounts

I read that paid collections fall off your report after 5 years in NY (as opposed to 7).  We have a number that would be due to fall off in the next couple of months if that rule was applied, but they are closed unpaid collections.  If we pay them do they open up again?  Would that start the 5 year countdown again?  Is it even possible to pay them once the account is closed?  
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DH starting scores 02/10/09: EX - 543, EQ - 543, TU - 554
Current scores: EQ - 750, TU - 732
My starting scores 03/13/10: EX - 711 (LO pull), EQ - 692, TU 701
Current scores: EQ 736, TU - 732
Message 1 of 4
3 REPLIES
Moderator Emeritus

Re: Closed Collections Accounts

Paying does not reopen or reset the clock.

Paid collections should be removed from DOFD in New York State (2 years before the natural 'fall off date' ). However, sometimes it must be addressed to them as not everybody knows it.
Message 2 of 4
Frequent Contributor

Re: Closed Collections Accounts

I thought that when u pay a collection it resets the age of the account. I live in Georgia so if I pay off a collection that originated in 2006 it has to fall off once its paid?
-------------------------------------------------------------------------------------------------Fico Score Range 600-625 across the board
Message 3 of 4
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Established Contributor

Re: Closed Collections Accounts


shalane85 wrote:
I thought that when u pay a collection it resets the age of the account. I live in Georgia so if I pay off a collection that originated in 2006 it has to fall off once its paid?

I was thinking this too, but I trust the expertise on here!

 

It would make more sense to me not to reset the age if you pay the account - that way there is an actual incentive for you to pay.  But then, none of this stuff really seems to be logical. LOL.

______________________________________________________
DH starting scores 02/10/09: EX - 543, EQ - 543, TU - 554
Current scores: EQ - 750, TU - 732
My starting scores 03/13/10: EX - 711 (LO pull), EQ - 692, TU 701
Current scores: EQ 736, TU - 732
Message 4 of 4