Help! Collection and credit scores

[Anonymous]

I recently settled a collection on my credit report. It was with Jefferson Capital (original was Verizon) for $941. They settled with me for $500. However, my most recent update shows they closed the $941 collection and now I have new collection for $441. How can they do that? I have the letter from them stating the settlement amount and that the account was paid in full. Is there anything I can do? This caused my score to go down 78 points. 

[rmduhon]

It's normal for accounts to be updated showing the payment and then a second update to show a zero balance. A 2 step process.

[gdale6]

Are you saying there are 2 collections for the same thing on file?

[Anonymous]

Only one. They removed the original and then added a new one. But now it looks like I have a new collection instead of an old closed one. Can they do that? If it's a 2 step process will it cause my score to go back up when it's complete??

[gdale6]

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@Anonymous wrote:

Only one. They removed the original and then added a new one. But now it looks like I have a new collection instead of an old closed one. Can they do that? If it's a 2 step process will it cause my score to go back up when it's complete??

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Ahh okay, it had not updated in awhile. Yeah they can do it and unfortunately your Fico will take time to once again recover unless you can get them to remove it with a GW letter. Fico looks at the status date of the update not when it actually happened. You may recover some points for it updating to 0 and showing paid but not all.

[Anonymous]

They were updating it every month. That's why I paid it. This is so confusing and it caused my score to drop 78 points. It seems really unfair. 

[gdale6]

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@Anonymous wrote:

They were updating it every month. That's why I paid it. This is so confusing and it caused my score to drop 78 points. It seems really unfair. 

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Are we talking Fico score here or some other scoring model?? If Fico look for something else causing the drop as it should not have changed much if it was updating monthly.

[Anonymous]

It was on creditsesame and creditkarma.

[rmduhon]

In that case don't worry about the score change. Those sites use Vantage scores which are very volatile and quite often bear no relation to actual FICO scores. Plus, very few lenders use them. Do you know what your actual FICO scores are?

[Anonymous]

The fico scores have stayed the same. That makes me feel better. Thanks!