I had a car lease, turned the car in after the term ended in November 2011. The car had damages and I made arrangements to make monthly payments to the car bank. The damages owed balance was never listed on my credit report (I guess because it wasn't really part of the lease it's more of an after lease thing) and the account was listed as closed on my credit report. 10 months later, I was unable to make the payments, the car bank refused to reduce the $420 monthly payments till I got back on my feet and the account was sent to a non reporting collection agency (I had no idea there were non reporting agencies till I spoke to them). So I have resumed making monthly payments which are still made out to the car bank but are sent to the agency. Is it possible for the car bank to change the current "closed or paid account / zero balance" description where my car lease is listed on my credit reports to open and that the account is now in collections?
Any insight into this would be appreciated, I'm really worried about having an account listed as under collections because I'm still in school and rely solely on my own credit for student loan approval. I don't have any family so it's not possible to just pay the existing balance off or ask anyone to co-sign for anything in the future.
I'd continue making the payments and leave the OC alone. Don't poke the bear. Hopefully it will just stay that way, I wouldn't be proactive.