Question on Paid Collection

[CS800]

IS there any law that forces/requires an OC or CA to report to the bureaus?

If no, it's up to the OC or CA to report it and they could just stop reporting it if they feel like it.

So if there are no law forcing them to report and they still report it, it's just them sticking it to you for messing with them.

I think since GW letters work, such law might not exist. Why not give people another chance if they paid the collection in full and even on a pyment plan and paid in full?

Why keep punishing someone if they paid you in full?

[CS800]

@Robert:

I should have given the background sorry.

On my CR's the collection said Kay Jewellers but the call to pay came from ERC. So when i called Kay, they told me that I should pay ERC since it was transferred to them. But the collection has always been reported on all my CR's as KAy Jewellers.

IS that strange?

[RobertEG]

No law requires either an OC or a debt collector to initially report to a CRA.  However, once they do report, yes, they are required to maintain the accuracy of their reporting.  They cannot just report a derogatory status, and then fail to update their reporting to maintain its current status and accuracy. 

If any credit reporting is made after an OC reports a referral of the debt to a debt collector, FCRA 623(a)(5) requires that they must follow that reporting up by providing the DOFD relevant to that collection referral or collection posting to the CRA within 90-days of any such reporting.  The CRAs need that date to calculate its continued inclusion of any such reporting related to any collection in your CR after the expiration of 7 years plus 180-days from that single, date-certain DOFD.  Reporting of the DOFD is not discretionary on the part of those who report to a CRA regarding a collection referral or a collection account.  They incur that responsibility by having posted collection-related information to a CRA in the first place.

It is not only strange, but it is not possible for an OC to report a collection.

OCs are not debt collectors, and thus cannot report collections to a CRA. 

What an OC reports is a status code of a referral for collection.  That is NOT a collection account, and does not report as a collection.

It only becomes a collection when a debt collector actually reports to the CRA.

Once a period of 7 years plus 180-days has expired from the DOFD on the OC account, and that date only, then the CRAs are charged with the responsibilbity to ensure that any information regarding the collection is not included in any credit report they issue.

You can always determine whether or not the parties have fulfulled their obligation under FCRA 623(a)(5) to accurately report the DOFD.  You can simply send the CRA a request under FCRA 609(a)(1) that they provide to you the DOFD contained in your credit file, and the name of the party who reported it.

[CS800]

This whole time I was wondering why my CR's said Kay Jewellers as collection written off $85 yet I was being harassed by ERC to pay this amount.

So now  that I finally paid ERC, they said they would notify Kay.

I will check my older CR's about what the status was reported as. I have a CR from EQ dated Nov 2010. I will post it in a bit.

[CS800]

Kay Oct 2010

Balance [?] Current Status [?] Past Due Amount [?]

$85	Bad debt/collection	$85

[guiness56]

I respectfully disagree RobertEG.  I have had several OC accounts report as collection.  And they were.  With their internal collection department. 

[CS800]

Latest info from Experian today:

KAY JEWELERS

Address: 375 GHENT RD  FAIRLAWN, OH 44333 No phone number available

Status:
Paid,Closed. $85 written off.

Account History:
 Charge Off as of Apr 2011

---------------------------------------------------

How can it be charged off as of Apr 2011 when i paid the balance in full to ERC?

DOFD Nov 2008

[guiness56]

It can't be.   It should report paid 4/2011.

[CS800]

What would be the best course of action?

Maybe leverage this mistake to have tham delete it?