@RobertEG wrote:
There are simply no reporting codes availble to a CA to update OC account when reporting their collection account.
If a CA is doing this, then it is a GROSS violation of the FCRA.
When a CA posts to a consumer credit file, it is an entirely separate posting than the OC account.
The CA has no legal authority to change the prior reporting of anything in the separate OC account with the CRA.
A CA may only post the collection as open (upaid) or closed (paid in full or settled in part), the date their collection activity commenced, and any legal actions taken on their collection account.
True. But not the point. Its not about a CA changing the OC a/c listing. Its about the CA reporting inaccurately.
Yes, ideally a CA cannot report payment history and hence cannot report lates as there are no codes to do so. But they do often misreport their collection a/cs under the 'accounts' section (where OCs report) and not under 'collections'. In such a scenario where they are reporting the collection a/c in the regular accounts section, they can possibly report payment history or other information indicating a late. For instance, they may perhaps report the a/c as 120 days past due in the a/cs status section where they are supposed to report as 'a collection a/c'.
Or they could report the a/c type as installment a/c instead of 'open(or closed)' as you mentioned thus enabling them to report a late. The CAs should not use those codes but the codes are there and the CAs misuse them.
So they are misreporting and using codes they are not supposed to and in such a case, they would end up reporting lates or reporting inaccurately, which might end up being considered by FICO which would end up tanking the score and the consumer would end up with lousy scores although a savvy consumer could possibly end up with the TL deletion or $1000.00 or both.
Message Edited by nothingman02 on 05-20-2009 11:42 PM
