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New Contributor
Posts: 69
Registered: ‎06-28-2011

Collection agencies practice question..

I notice I have amount 5 collection accounts and at least 2 state closed but still reporting at least 1.00 increase  monthly is this even legal/right for them to do?

and can this cause score drop?

Lender pull:
10/2010: EQX 568 EXP 622 TU 555
02/2011: EQX 575 EXP 605 TU 571
06/2011: EQX 601 EXP 598 TU 593
07/2011: EQX 612 EXP 622 TU 598
07/2011: EQX 594 EXP 602 TU 654...Ultimate goal 700+
Moderator Emeritus
Posts: 32,865
Registered: ‎08-04-2007

Re: Collection agencies practice question..

I'd argue that it's legal. Per FICO scoring, opened or closed, it doesn't matter. If "closed" is wrong, then what's the alternative? Have them say "open"? It doesn't diminish the debt any or make it less collectable. With regards to the balance, YMMV based on your state. In most states, the CA can add interest. You'd may also have to check your agreement with the OC to see if interest can be added. Unfortunately, their monthly updates can have an impact in certain circumstances; it depends on the version of FICO and how it is reporting.


If ready to tackle them and assuming you have the $$$ set aside or assuming SOL had expired, then send each a DV. If they verify and agree, then send a PFD. Of the 5, I bet one or two might give up and disappear.

Valued Contributor
Posts: 2,830
Registered: ‎06-05-2008

Re: Collection agencies practice question..

pphilpot wrote:

I notice I have amount 5 collection accounts and at least 2 state closed but still reporting at least 1.00 increase  monthly is this even legal/right for them to do?

and can this cause score drop?

You have some work ahead of you...  I recommend you spend some time here and read the sticky's.  Learn how to DV where applicable, and try to PFD what you owe.


Good luck!

3-26-15: FICO EXP: 828 - EQU:820 - TRAN: 828 - AVG: 825 +275 points from JUN 2008 - MY CREDIT JOURNAL

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