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Established Member
Posts: 18
Registered: ‎08-01-2011
0

Debt in accounts?

So I pulled my credit report yesterday and I have 8 collections (5 of which are medical), 1 should fall off this coming march, the other 2 Ipaid to delete. Now Im confused cause I have 3 accounts that are repoting bad debt and a $0 balance on them. They're not  in collections, but WILL they be sent to collectons? They have not reported since January 2012. What should I do? Pay them off?

EQ - 642 EX - 661 TU - 671
Moderator
Posts: 13,582
Registered: ‎04-15-2011
0

Re: Debt in accounts?

If they are reporting a $0 balance, then there's nothing to pay.  Who's posting to your CR?



Starting Score: 504




July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
Epic Contributor
Posts: 20,077
Registered: ‎03-19-2007
0

Re: Debt in accounts?

Reporting of a $0 debt balance by a creditor does not mean there is no longer a debt to pay.

It usually means that they no longer own the debt, and thus there is no debt owed to them.  If they sell a debt, they are required to timely update its reporting so as to maintain its accuracy.  However, the debt itself is still out there until paid.

 

There are often times when your CR will not show the amount of an unpaid debt.  The party who purchased the debt can report at any time.

The amount reported by the debt collector will thus reflect both the amount they are authorized to collect and the amount of debt owed to them.

 

Moderator
Posts: 13,582
Registered: ‎04-15-2011
0

Re: Debt in accounts?

I agree with you totally on that one Robert.  I was referencing that the creditor posting $0 no longer has the debt.   I should have continued on with the rest of the post.  Thank you! 



Starting Score: 504




July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
Established Member
Posts: 18
Registered: ‎08-01-2011
0

Re: Debt in accounts?

Should I contact the company (which is a check advance place that I got in 2006) to see who they sold it too? And pay it off before it hits collections?
EQ - 642 EX - 661 TU - 671
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