Revolving Credit

[Anonymous]

I have a collection from Verizon on my account that is showing up as revolving credit.  They do not own this collection anymore and have sold it to another company.  I havent contacted the new company yet.  

Why is a collection showing up this way?  Since they do not own the collection anymore can I dispute it so they remove it from my report?  

[Anonymous]

They are the original creditor, whether or not they still own the debt is not relevant. Only junk debt buyers are required to delete their reporting when they sell the debt.

It normal for phone, cable and utility account to be reported at "revolving" account type.

[Anonymous]

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@Anonymous wrote:

They are the original creditor, whether or not they still own the debt is not relevant. Only junk debt buyers are required to delete their reporting when they sell the debt.

It normal for phone, cable and utility account to be reported at "revolving" account type.

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If they sold the account is it still right for them to show a remaining balance on there?

[Anonymous]

Just because a collector has it, does not mean its been sold. Telecomms like Verizon do not like to sell their bad debts, and instead they just "hire" a CA to do the dirty work of collecting it. Is the collector also reporting it? How old is this debt?

[RobertEG]

There are three basic types of consumer debt.

Revolvng is where the creditor provides an approved amount of crdit that the consumer can then use at their discretion, with the resulting balance and monthly payments "revolving" around the amount that the consumer has chosen to use.

Installment credit is where the consumer receives a defined chunk of money, and repays it in (usually) equal installments at defined, fixed due dates.

Open account is a form of credit where the full amount is due when billed, and the consumer is not permiited to selectively carry over the debt to a next billing period.

They include utilities, apartment rentals,, etc.  The use of the term "Open account" is not to be confused with the use of the term open to reference whether it is open or closed ot consumer use.

The CRAs divide revolving and installment credit each into two sub-categories, and thus provide for five defined types, which they refer to as the "Portfolio Typr." and is desginated in the consumer's credit file undr that degsination.

The 5 Portfolio Types stored under Field Code 8 of the consuemr's base segment are:

C = Line of Credit

I = Installmlent

M = Mortgage

O = Open Account

R = Revolving

Yes, you can dispute a collection that is reporting as Revolving if the debt was an Open Account.

However, a dispute only applies to the accuracy of the information under dispute, which in this case would be the desgination of the portfolio type.

Resolution of any dispute can be accomplished either by verification of its accuracy as reported, or by correction so as to overcome any inaccuracy.

Deletion is only mandated when neither of those can be done.

A disptue of the Portfolio Type would necesarily require you, when asserting it to be inaccurate, describe what it shuld be.

The CRA cannot have a reported debt without a type,and thus will not delete it.

They will either verify or correct.

Botton line is that if you are disputing for the purpose of getting the collection deleted, you wont get that result.

You will either get a verification of accuracy as reported, or a correction to what the CRA considers to be accurate.

[Anonymous]

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@RobertEG wrote:

There are three basic types of consumer debt.

Revolvng is where the creditor provides an approved amount of crdit that the consumer can then use at their discretion, with the resulting balance and monthly payments "revolving" around the amount that the consumer has chosen to use.

Installment credit is where the consumer receives a defined chunk of money, and repays it in (usually) equal installments at defined, fixed due dates.

Open account is a form of credit where the full amount is due when billed, and the consumer is not permiited to selectively carry over the debt to a next billing period.

They include utilities, apartment rentals,, etc.  The use of the term "Open account" is not to be confused with the use of the term open to reference whether it is open or closed ot consumer use.

The CRAs divide revolving and installment credit each into two sub-categories, and thus provide for five defined types, which they refer to as the "Portfolio Typr." and is desginated in the consumer's credit file undr that degsination.

The 5 Portfolio Types stored under Field Code 8 of the consuemr's base segment are:

C = Line of Credit

I = Installmlent

M = Mortgage

O = Open Account

R = Revolving

Yes, you can dispute a collection that is reporting as Revolving if the debt was an Open Account.

However, a dispute only applies to the accuracy of the information under dispute, which in this case would be the desgination of the portfolio type.

Resolution of any dispute can be accomplished either by verification of its accuracy as reported, or by correction so as to overcome any inaccuracy.

Deletion is only mandated when neither of those can be done.

A disptue of the Portfolio Type would necesarily require you, when asserting it to be inaccurate, describe what it shuld be.

The CRA cannot have a reported debt without a type,and thus will not delete it.

They will either verify or correct.

Botton line is that if you are disputing for the purpose of getting the collection deleted, you wont get that result.

You will either get a verification of accuracy as reported, or a correction to what the CRA considers to be accurate.

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Thank you for your information.  I am not trying to get it deleted.  When I called Verizon to settle the debt they told me they did not own the debt anymore and I needed to contact Collector (i think thats the name).  Its not showing up twice on my report, but it is still showing that verizon owns it.  

It may be reporting wrong than as its being reported next to my credit cards as open credit.