Question on Paid Collection

[CS800]

3 weeks ago i paid a collection to the CA that Kay Jewellers had. I check my report today and it says 'Paid,Closed. $85 written off.'

The totla of the collection was $85 that I paid in full. Should the status say that?

I'm thinking that laybe the CA hasnt told Kay that I paid this off in full?

[guiness56]

It says paid and closed. 

They COd the account and got a tax write off for it. 

[CS800]

 So it should say 'Paid and CLosed' ?

[guiness56]

No, it is still a CO and they can report that way.

[CS800]

Unless I can get it removed, it would still impact my score the same way for 7.5 years?

[guiness56]

Yes. 

[Shogun]

Clear this up for me guiness because I believe that it's displaying wrong.  If the $85 was paid then they couldn't get a tax write off.   Let's say it was $8500 and they did that.  They would have to 1099-c you for the remainder that was written off, but if you paid through the CA then this would be double jeapordy.  It should say, paid, closed, collections.

[guiness56]

A CO is only an accounting term.  The company writes off the debt and get a break on their taxes.  Until it is paid, it is still owed.

A company does not have to give you a 1099-C.

The CO comment is not hurting the score, it is the collection itself that is causing the damage.

But, yes, if it is a CA reporting it should say paid collection.

[Shogun]

Good to know.  Now that it's paid start the GW writing campaign.

[RobertEG]

To clarify things a bit, did the OC do the charge-off, or was it the debt collector?

If so, did the debt collector ever own the debt, or were they just a collection agent assigned by the OC?

Unless the debt collector owned the debt, they could not do a charge-off.

If the debt collector owned the debt, they could have done a charge-off prior to its payment.  If not, the CO could only have been reported by the OC, and only before they sold the debt to the debt collector.