cancel
Showing results for 
Search instead for 
Did you mean: 

Weird issue with Collections and credit reports

tag
Anonymous
Not applicable

Weird issue with Collections and credit reports

I m trying to fix and rebuild my credit. I have 9 collections all mine no disputing that. After reading on here for some time I decided to try some PFD. I pulled my free credit report 2 months ago but couldn't get Equifax. I couldn't pass the verification questions for some strange reason. So I looked at my 2 other reports and said well I'll write the letter ad try to get the Equifax later on. Today I said man let me try to get EQ I really need to work on this. I was able to pass the questions and started reading my report. When I looked at the summary it said 0 collections. I was thinking this can't be right. I looked at the collection part and they all said closed.

 

For example first one is MIDLAND CREDIT MGMT INC (CLOSED)

 

It says this for all collections. Now my question is have these accounts all been closed? I looked at day reported and it was on 06/16 for Midland and 06/08 for Portfolio Recovery but all say (Closed) after the name.

 

What does this mean? Did the companies close out these collections? Did they write them off as a bad debt? I have been reading conflicting information and just wanted to know what was my smartest and best next step?

 

Thanks

Message 1 of 2
1 REPLY 1
RobertEG
Legendary Contributor

Re: Weird issue with Collections and credit reports

A debt collector must report closed for an unpaid collection once they no longer have active collection authority, such as the owner has terminated assigned authority to collect on their behalf OR the debt colector owned the debt but has sold it to another.

 

Some debt collectors have apparently also established a practice of reporting closed for any period in which they have suspended active collection, such as when they have received a timely DV request and thus are under a cease collection bar.  Thus, while reporting of closed will normally indicate that the debt collector no longer has collection authority, that may not necessarily be the case.  it may only be a temporarty suspension.

 

If in doubt, contact the debt collector and inquire as to whether they no longer have collection authority.

The importance is that CRA policy instructs debt collectors to delete their reported collection if they no longer have collection authority and the debt remains unpaid.

Message 2 of 2
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.