Asset Acceptance

[Anonymous]

I've been reading that Asset Acceptance is posting accounts to the CB's in the wrong place.  I think they're doing that to me too.  How exactly are they supposed to report?  They purchased a revolving account from Chase in December 2008.  I paid Asset in March 2009 only 3 months later.  Had I found this site sooner I would have known about the PFD but live and learn.  I called them but they won't delete.  I resently sent a GW.  Asset continues to report every month as a "paid collection" on one CB and I think it's under revolving on the 2 others.  If they purchase a revolving account, do they get to also report a revolving account?  Is it better for my score to have a "new" deliquent account or to have a "new" paid collection?

[llecs]

FICO is reading it as a collection, either way. It will never report as revolving.

Neither is good. The mere presence of the CA is damaging your score. The only improvement you'll see with that is it's removal.

[Anonymous]

so it won't help my score to have the CA in collections and not revolving?

[nothingman02]

Hmm..as mentioned, when CAs report collection accounts accurately and thus when the account is being listed accurately as a collection account, then whether they are paid or unpaid does not matter. They would score the same. FICO  scores the unpaid and paid collections the same.

Whats hard to determine though is how is FICO reading the account.Study and analyze your reports.

Is it counting in your UTL? Is it counting in your Age? Is it counting in your Accounts with balances? etc...

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Here are my guesses and only that! 

1) If it is reporting inaccurately, my guess is that there will be a score change even if FICO identifies it as a collection account. It might ding you more for say, a collection and also a "120 days past due" listing for instance.

So when you pay it off, there will be a ding, only for a collection account.  So you might gain a bit in this case. Again, its only a guess. Im not positive about how FICO reads accounts. Im guessing it reads the accounts by their codes. The mods would have the inside scoop on it along with their free scores and other perks..

On the other hand,if FICO scores all colection accounts the same,and also ignores all other data other than that its a collection account and dings only for that, then it should not matter. Once its identified by FICO, it does not matter where it is showing on the CBRs. 

2) If it is reporting inaccurately, there will be a score change if FICO DOES NOT identify it as a collection account. So once paid, there should be a gain. But if relocated to a 'paid collection' listing after you pay it off, then you would lose points for a "new" collection account, albeit paid, which you didn't have before.

3) If reporting accurately, then there should be no change whether you pay it off or not. If in fact the collection account has not been updated for a while, you would lose some points, as it would be updated now and would look to FICO as a recent collection. If you have no choice, better to pay it and take that hit now so that the paid CA would age a fair bit by the time you want to app for something. 

[RobertEG]

CAs dont report account type as anyting other than their collection account.  They are not an OC.  You have no account with a CA, revolving or otherwise.  CAs cant report delinquencies. Their monthly reporting is confined to simply paid or unpaid (with maybe some special terms payments comments).

The CA "account" is only their post with the CRA, not an account with you.  So a CA account is NEVER revolving.

OCs and CAs report to entirely different fields of your CR.  CA account status is either open or paid.

A CA can NEVER report a new, revolving account.  No way.

Message Edited by RobertEG on 06-05-2009 06:11 PM

[RobertEG]

FICO would never go to your CA account fields in your CR to determine anything to do with current OC account utiliization.

The CA reporting will never impact OC credit history or % util of OC accounts.  A CA cannot update an OC account.

[Anonymous]

So...I have 2 collections, one paid and one unpaid.  The paid one is NOT reporting in the same spot on 2 of the credit reports with the unpaid one.  I'm pretty sure it's being reported with the other accounts, but exactly how it's being counted, I don't know.  I haven't really check if it's counting with balances or UTL, but it's definitely not with the other collection acct.  One report does say "revolving".  One report reports "paid collection" in the remarks but also says "120+ past due" even though it's paid since March.  It wasn't even 120 days past due when I paid it.  One report says "collection since May 2009" and continues to report that way every month even though it's been paid since March.  I was already "dinged" really hard (-60 points) in May because paying it off made it look like a "new" collection account (or so I'm told).  So I need some advice here so I don't make another stupid mistake.  Who knew (now I do) that doing the right thing and pay off your bad debts whould make you lose 60 points?

1) Should I have the paid collection moved to the collection section on the 2 reports where it's not or will that again make it look like a new collection?

2) Should I leave the paid collection where it is and just request that they remove the "120+ days late"?

3) Should I request that they stop reporting "collection since....(whatever the current month is)?

4) Should I do nothing?