Collection agencies adding 8 dollars every month

[StevenBoyer]

Can Collection agencies add 8 dollars every month to a balance that they got from a CC that was charged off? Also, can they report the collection debt a 120 days late and as an open account?

[cqdealer711]

if they are reporting as a factoring company, they seem to be able to report lates... its kinda BS, but somehow they are getting away with it.  Is it MIDLAND?

as far as them adding money.... im not sure, maybe someone else will chime in.

[llecs]

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@StevenBoyer wrote:

Can Collection agencies add 8 dollars every month to a balance that they got from a CC that was charged off? Also, can they report the collection debt a 120 days late and as an open account?

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Welcome to the forums!

I'd suggest reading the following:

Common Abbreviations

Credit Scoring 101 - great for knowing what is in your credit score and to see how your score is impacted.

What Steps Do I Take - great for learning the repair process.

and Example letters - PFDs, GWs, DVs, etc.

They can provided there's nothing in the agreement with the OC that they cannot and provided your state allows that. I'm in VA and the default rate is 18%, so any CA can add interest here provided the OC lets them. 

There's nothing in the FCRA that precludes a CA from doing that. In terms of FICO scoring it doesn't matter. It's viiewed as a CA and scored as such. Likewise, lenders would still view it as a CA. I certainly would fight for the removal of the baddie via a DV-PFD combo if legit, vs. spending months trying to fight how it reports. I also don't think it's the CA's doing. I too had CAs report as an account but I noticed it was a selcect number of CAs and it didn't report the same on TU and EX. I think it's something EQ is doing to get it to report that way.

[guiness56]

No CA, whether they call themselves a factoring company or not, are allowed to report late payments.  Sometimes it is a merging of the OC and CA TL.  I have no idea how th e CRAs manage to do that.

There is not even a place or code for them to use to report a late payment.

They can add interest and fees only if the agreement you had with the OC says they can.  And your state laws.

[StevenBoyer]

Yes, Midland. One of them says they are a Factor.