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Valued Member
Fancyron
Posts: 36
Registered: ‎03-20-2007

Another collection question?

About 4 months ago, I was shocked and horrified to see a new collection account show on all 3 credit reports.  Turns out that the original creditor should have never sent the account to collections in the first place.  I contacted the Collection agency and the original creditor to get it deleted.  Originally they had only stated that it was paid in full, but the collection was still showing.  It appeared that my score did go up when the collection showed that it was paid.  I had to fight to get them to agree to delete it completely.
 
The big question is,  when the collection is deleted, as agreed by the Collection agency, should I see a an increase my score?  This collection was from September of 2007, so it is very recent.  The amount is small ($86.00) so I wasnt sure if it would make a difference.   
Moderator Emeritus
fused
Posts: 16,243
Registered: ‎03-12-2007

Re: Another collection question?

In FICO scoring it doesn't matter if the collection is paid or unpaid, they are treated the same. Same goes for the dollar amount, a $10 collection is just as bad as a $20,000 collection. I know it stinks! I have a few questions before I make any guesses. Do you have any other bad stuff on your reports? Late payments, etc.? If you have CCs, how high are the balances in relation to their credit limits? And finally, did you know what your FICO scores were before the collection reported? What are they now?
Valued Member
Fancyron
Posts: 36
Registered: ‎03-20-2007

Re: Another collection question?

[ Edited ]
Last late payment was 12-2006.  My uti has stayed pretty much the same from the time the collection appeared until now (current report as of today).  I will say that due to payments made this month My uti will drop 30% once all updates are made.  No inquires, no new accounts or any other thing that may affect my score has occured.


Message Edited by Fancyron on 01-11-2008 04:59 PM
Established Contributor
scramblingin2007
Posts: 749
Registered: ‎08-19-2007

Re: Another collection question?

HOw did you get them to remove it? I have been back and forth with my oc. I have a paid collection that they agreed to remove but I am getting nowhere with them...
Valued Member
Fancyron
Posts: 36
Registered: ‎03-20-2007

Re: Another collection question?

Scramblin-
 
Original creditor had to contact the Collection agency and tell them that they made an error and the account should have never went to them.  I had to make over 15 calls to make sure it will be done.  Not quite done as of today however, but I have correspondence from the Collection agency saying that it will be deleted. 
Moderator Emeritus
fused
Posts: 16,243
Registered: ‎03-12-2007

Re: Another collection question?



Fancyron wrote:
Last late payment was 12-2006.  My uti has stayed pretty much the same from the time the collection appeared until now (current report as of today).  I will say that due to payments made this month My uti will drop 30% once all updates are made.  No inquires, no new accounts or any other thing that may affect my score has occured.


Message Edited by Fancyron on 01-11-2008 04:59 PM


If I knew what your scores were before and after the collection reported, and how many late payments you have and how severe, I could make an educated guess. Without this info, it will be tough to have any good idea. A good rule of thumb in FICO scoring is the two-year window. What this means is anything derogatory that's less than two years will almost always have a greater impact on scores. Depending on your answers, you could see an improvement from 15-75 points, maybe more but not likely.

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