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Collection Closed

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Anonymous
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Collection Closed

Hey guys I have been reading quite abit on myfico lately to repair my credit.  I have 2 negatives for experian.  One is showing Closed-Paid.  Says it was open in 2006, does not say when it was closed.  Is this hurting me alot and if so how can I get this removed?  It's from Credit Protection Association.

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RobertEG
Legendary Contributor

Re: Collection Closed

Some basic terminology.

You have two totally different types of "accounts" in your CR.

 

First are accounts you have with an OC.  They are based on legal agreements directly between you and the creditor.  They have a date opened, and a date closed when one of the two parties to that contract chooses to terminate it.

 

Second are "accounts" in your credit file posted by a debt collector.  They are not contracts with you, in any legal fashion.  They are just credit reporting "accounts" that are strictly between the debt collector and the credit reporting agency, for the purpose of recording debt collection activities.  The date of "opening" of a CA can be anytime after the debt collector obtained assignment or sale of the debt to them.  CAs are never really "closed" in the sense of an OC account.

Two things can ultimately happen upon payment/fulfillement of a debt previously reported by a debt collector.  If, upon payment, you get an agreement by the debt collector to delete the CA, then the CA is simply deleted.  It is gone.  Not reported as "closed".  However, if it is paid with no agreed CR deletion, then the payment status is updated, if paid,  to $0 balance owed. But no deletion of the reporting done by the debt collector.

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