Deleting Collection

[Anonymous]

We would like to buy a house in the near future, and my scores are ok, but I would like to get them a little higher. I have 2 paid judgements ($277 and $551) on my credit report (both from 2010), and 1 paid collection (06/2015). I would really like to get that collection off of my report. It was a $50 utility bill from a previous residence that somehow got overlooked and sent to collections. Once I received a collection notice, it was paid immediately. My question is, how do I go about having it deleted from my report? Do I contact the utility company or the collection agency? Thanks!

[RobertEG]

Only the party who reported to the CRA can then report its deletion.

Contact the debt collector and request their good-will deletion.

[Anonymous]

Hopefully it's from a reasonable collection agency and not from, say, Midland.

[RobertEG]

It is a bit more than whim or "reasonableness."

CRA policy instructs them not to grant subjective deletion of their collection based on payment of the debt.

The CRAs wish to retain as much prior history as possible in their files, thus increasing the value of their product.

[Anonymous]

Sure, I understand about the policy, but adherence to that policy ranges widely -- on the consumer-friendly end of the spectrum, with goodwill deletions, and on the opposite end of the spectrum, with reps quoting policy as "law" and rogue agencies misreporting and falsely freshening dates. Fortunately, we have the dispute process, however flawed and arbitrary it may be, and with enough patience can often overcome such obstacles.

In my mind, seven years is a long time to hold on to negative information. I think the system should have a shorter memory, and reward positive behavior by clearing things earlier.

[Anonymous]

Well, from everything I've found researching, it might not do any good. Online Collections is the collection agency that reported, and I don't know that they're very willing to work with anyone. When I got the call from them that the amount was owed, I tried to pay for delete that day and they would not. I paid the bill that very day, though. Hopefully it won't be too much of a negative since it is paid and the amt. owed was only $50. 

[Anonymous]

If the collection is on your credit report, then the damage is already done. A collection for $1 is the equivalent as a $10,000 collection. Amount is insignificant in terms of credit reporting.

[Anonymous]

That's an interesting assertion, I'm not sure I've heard that before. It sort of makes sense from a logical point of view (either you're penalized for getting in over your head and letting it go as far as collection, or you're penalized for letting a paltry amount be ignored and go to collection). I wonder if manual reviewers would look at it that same way.

[driftless]

I would certainly contact the CA, send off GW letters, and then challenge it. I had a $25.00 medical co-pay that was sent to a local, non-professional collection agency. The CA did not respond to my letter saying that the bill had been paid and that the medical group billing was incorrect. The CA reported it to one CRA. I direct disputed it online and the CRA removed it within an hour.