Is this closed collection reporting correcty?

[Anonymous]

I have been trying to figure out if this account is being reported correctly and whether or not I should pay it? The DOFD is in April of 2014 I believe, so it is just about 2 years old. They do not seem willing to do a PFD, however, they have offered to settle for half. They appear to be updating each month, and I am not sure if it is effecting my score. However, on my Experian Fico report it shows the date of my last late as 6 months ago, which is the date this account was first reported. My issue is it is currently shown as a closed collection account. I have read several different things regading how closed collection accounts should report. Is this reporting correctly or should it be disputed? Any insight and recommation on how to proceed would be helpful. I plan on purchasing a home in the next year, so I am trying to move forward with the best course of action, even if it means it has to be paid. Thanks for your help!

[dman23]

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@Anonymous wrote:

I have been trying to figure out if this account is being reported correctly and whether or not I should pay it? The DOFD is in April of 2014 I believe, so it is just about 2 years old. They do not seem willing to do a PFD, however, they have offered to settle for half. They appear to be updating each month, and I am not sure if it is effecting my score. However, on my Experian Fico report it shows the date of my last late as 6 months ago, which is the date this account was first reported. My issue is it is currently shown as a closed collection account. I have read several different things regading how closed collection accounts should report. Is this reporting correctly or should it be disputed? Any insight and recommation on how to proceed would be helpful. I plan on purchasing a home in the next year, so I am trying to move forward with the best course of action, even if it means it has to be paid. Thanks for your help!

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What is the issue in deciding whether to pay or not? I know your basing that decision on how it affects your credit. How about basing it on the fact you stiffed the company.

And now you want a mortgage. I wouldn't  lend you a dime. Don't people have any pride and dignity?

[Anonymous]

Your post wasn't the least bit helpful. While I do plan on paying the debt, I do understand that there may be consequences for paying, as such I would like to pay accordingly. Unfortunately this was a medical bill that I did not have the ability to pay at the time. Thank you for your unhelpful post, thankfully I am not asking you to lend me "a dime". 

[RobertEG]

A debt collector usually does not report their collection as closed unless they no longer have collection authority, either because their assignment has been terminated or the debt has been sold.  However, while a bit confusing as to why they would report closed if they still have active collection authority, it is not in and of itself conclusive that they no longer have collection authority.

The relevance is that if you KNOW that a debt collector factually no longer has collection authority, that is basis under the CRA reporting manual for their deletion of their collection.  If you wish to dispute to determine whether they still have collection authority based on the inference from their reporting as closed, then you are certainly free to do so.  Howver, there are easier ways to make that determination without resorting to a dispute based on an iffy inference.  You can simply call them and ask.

A dispute will only require either verification of the accuracy of that specific reporting, or correction so as to overome any inaccuracy should they agree.

The result will not require the deletion of anything, and might serve only to create unecessary confrontation with the debt collector.

I would not dispute.

Perhaps a pay for deletion offer, which will result in deletion of their collection should they accept, and by making the offer,you will certainly become aware of whether they still have collection authority.....

[Anonymous]

Thank you Robert. From my conversations with them, I do believe that they have collection authority. It seems like the best course of action would be to pay the debt, hopefully with a pay for delete negotiated. 

[gdale6]

There is a post in this thread that is approaching flaming, a TOS violation and is borderline nonFSR. Lets all remember to be respectful of one another in our responses. Thanks!

[Anonymous]

You've got to be realistic, friend ...this debt looks like it's less than a year old, a PFD doesn't seem that likely

especially if you're asking them to resort to a 50% hit with months of creating the debt....

Now as far as your mortgage app next year you probably have enough time for the age of this account (that would be an aged old paid account by then)

to not be 'that' strong of a factor, so handle it NOW!

In addition, if you were to dispute some aspect ('wink') of this account several months (like 8-10) after it was paid ..not many places would even respond b/c

at that point it's 'old already resolved business' not worth their TIME, money or effort  thus the deletion is then done by the CRA (w*ink)

That's how to get it done back door ( it works b/c the other party w/ a dog in the fight is off fighting other battles, newer battles where money hasn't been collected) not worth their effort to research and validate files they settled and gotten paid (and especially 'old ( by then) files)

There is a difference between a) 'Please, I paid half that can you do me a favor a delete accurate info vs

b) "I believe this account is in total error, please validate it CRA or promptly removed it within the next 30 days'

a) Can easilty be answered NO , which is easy, fast and CHEAP...causing less labor for creditor/collector

b) Ignoring even answering, challenges to accounts in the WIN column...doing no new work researching or raising a finger also = LESS labor cost

Thjeir goal is easiest, fastest, cheapest

good luck

[RobertEG]

One of the biggest misconceptions about the dispute process is that if you find any inaccuracy and dispute, if the furnsher does not respond by verifying or correcting in the manner asserted in the dispute, then the account/collection must be deleted.

The dispute process is to correct inaccuracies, not to require deletion of other accurate information or impose a penalty for inaccurate reporing.

The dispute only applies to the info that is identified as inaccurate, and the accuracvy can either be verified or the information corrected.

Deletion is only required if neifher of those two can be done, and deltion does not extend to any entire account or collection.

In most cases, a consumer documents or asserts how the reporting is inaccurate by stating how it shoud be reported.

The CRA can, if the futnisher does not respond, simply correct in the manner asserted by the consumer without any requirment to delete anything

Finding small items to dispute under the assumption that no verifiction by the furnisher will compel deletion, for example, of an entire collection is based on a misinterpretation of the dispute process.