Collection reporting as open debt?

Anonymous · ‎10-20-2015

Hello, was hoping to get some guidance. I have an old Sprint bill that was recently sold and is reporting as open and negative. I've disputed online, but they do not budge. The company is Sources Recovery or something like that. I have heard a collection cannot be reported as a new line of credit since they are not the OC. Any ideas?

Secondly, I also have some collections that are paid but are refusing to be removed. I paid them off before I knew about PFD. What are my options here as well? I have 10 paid collections/charge offs I am trying to remove.

Anonymous · ‎10-20-2015

@Anonymous wrote:
Hello, was hoping to get some guidance. I have an old Sprint bill that was recently sold and is reporting as open and negative. I've disputed online, but they do not budge. The company is Sources Recovery or something like that. I have heard a collection cannot be reported as a new line of credit since they are not the OC. Any ideas?

Secondly, I also have some collections that are paid but are refusing to be removed. I paid them off before I knew about PFD. What are my options here as well? I have 10 paid collections/charge offs I am trying to remove.

Hi ljeeter,

I was so confused about situations like this when I started out. I'm still new to this, but here is what I've learned. (I hope this is correct, but don't quote me yet until the experts respond.) I believe Account Type and Account Status are two different things. Also, cell phone and uitility collections tend to look like revolving accounts. If you are looking at this via a membership service, it may show under 'Revolving' or 'Other Accounts'. If you are looking at your reports, it may show under other accounts and include payment history and have a CO status(from my experience). This was confusing to me when I started but I learned that it's just the way the CRAs classify it. Unless, the account has been purchased. In your case, you state that it has been sold, so it should not be reporting that way and is a violation.

As far as the paid collections and COs, from what I have read, I believe you will need to send GW letters and be persistant.

Anyone please correct me if I am wrong.

Anonymous · ‎10-20-2015

@Anonymous wrote:
Hello, was hoping to get some guidance. I have an old Sprint bill that was recently sold and is reporting as open and negative. I've disputed online, but they do not budge. The company is Sources Recovery or something like that. I have heard a collection cannot be reported as a new line of credit since they are not the OC. Any ideas?

Secondly, I also have some collections that are paid but are refusing to be removed. I paid them off before I knew about PFD. What are my options here as well? I have 10 paid collections/charge offs I am trying to remove.

Blue - A CA cant report as a new line of credit because they cant lend money. They get more attention from creditors because they are causing a bigger hit to our scores this way. They should report as a Collection account. I believe it can be disputed with the CRBs.

Collections that are paid do not have to delete, and they are not supposed to, according to the CRBs. If you did not get them to agree to a PFD before paying, your option is to send GW letters to the CA asking them to voluntarily delete. It often takes multiple letters over multiple time periods to get it accepted, if ever.

HTH

Anonymous · ‎10-21-2015

Thank you! I appreciate the responses. The 10 negative paid collections are just a hinderance in obtaining higher credit limits. I will do the goodwill deletion option and see what happens!