topic Re: can CA post a TL as being an open account? in General Credit Topics

can CA post a TL as being an open account?

amber1 — Thu, 19 Nov 2009 03:14:04 GMT

Hello All,

I'm new to this so please excuse my ignorance. Quick question; can a CA post TL for account type as being open? OC posting closed; this is a CO account.

Also, if I had a CO from OC and account sold to a CA and the original high balance was $1609. Does it sound right that the CA is now asking for $3328? If it doesn't sound right does anyone have any suggestions?

Thanks in advance

Re: can CA post a TL as being an open account?

llecs — Thu, 19 Nov 2009 13:51:44 GMT

There's some debate whether or not is can report as open. Per FICO scoring it doesn't matter at all. FICO still reads it as a CA.

Can a CA report double? Yes, over a multi-year period. A CA can add interest. How far of a time frame was it between the time the OC reported the $1600 and when the CA reported the $3300? Also, which CA is this?

Re: can CA post a TL as being an open account?

amber1 — Thu, 19 Nov 2009 14:32:27 GMT

Thank you for your reply. The OC transferred the account in 2007 and the CA is NCO.

Re: can CA post a TL as being an open account?

llecs — Thu, 19 Nov 2009 14:38:51 GMT

If you have the $$$ to PIF (if you had to) or your SOL expired on the debt, then send NCO a DV. If they verify and you agree, then send off a PFD to get rid of it.

Re: can CA post a TL as being an open account?

amber1 — Thu, 19 Nov 2009 14:46:08 GMT

I'm sure the SOL expired and I did send a DV to them a few days ago. I am desperately attempting to clean up my report. There is nothing worse than having bad credit. I wish when I was growing up that I had parents or some adults that could have explained the whole credit process. I have been getting lots of education recently on this. I have been teaching my children how to avoid falling into debt and be smart consumers; especially since they are all teenagers.

What I did accomplish thanks to this forum is I just had a paid medical deleted from TU via a Pre HIPPA letter. Yeah! My FICO score is 600 and hope to join the 700 club by next year

Re: can CA post a TL as being an open account?

IOBA — Thu, 19 Nov 2009 17:25:43 GMT

lol - my kids know about credit scores, credit cards, bank accounts, IRA's, etc.

We've come a long way from the 2 yr old saying, "Just go to the bldg and get money." That is what Nana and the other adults did with this child.

I use to say no and explain that I did not have the money for that activity (eating out, or whatever). Or explain, if we eat out tonight, then we can not go to the movies this weekend. Which would you like to do better?

This kid has several credit cards, no debt, and is on a cash basis.

I hope you will pass along the knowledge to others.

Re: can CA post a TL as being an open account?

amber1 — Fri, 20 Nov 2009 01:21:58 GMT

You can count on me to spread the knowledge. Every tidbit that I learn is passed on to everyone I meet up with. Hopefully I can save someone else from making foolish mistakes and paying for it for seven years. Ugh!

Re: can CA post a TL as being an open account?

AndySoCal — Fri, 20 Nov 2009 02:22:05 GMT

The Open being reported as the account type ? In the same place on other trade lines you would see the words,revolving installment or mortage. If so the open does not refer the account being either open or closed. This account type can also be seen on some American Express cards wher the balance in full is due each month. The Open account account type also can refer to a single payment account such as a collection account.

Re: can CA post a TL as being an open account? Update! Weird stuff!

amber1 — Wed, 25 Nov 2009 23:22:06 GMT

Yes, the account type is listed as open.

Here's the newest thing that has happened. I sent a DV to NCO on 11-03-09 and it was received by them on 11-06-09 I have now received a letter from California Recovery Systems, Inc. trying to collect on the same debt for the amount of $1615.38. This is quite funny because NCO is trying to collect the amount $3328.00 and the original creditor is Capital One. This letter from California Recovery Systems, Inc. has the account identification number and it says current creditor : NCO RE: Capital One, Principle assigned to us: 1608.53, interest accrued: $6.85, Total now due: $1615.38.

Hmm, what is going on with this account? Does it sound like NCO has passed this account onto California Recovery Systems. What do I do with the DV that I sent to NCO? Obviously, I wait out the 35 day waiting period to see if they validate the debt and if they don't then I guess I will try with the CRA to have them delete the account because NCO didn't validate. I guess I will have 2 points to stand on; the first maybe NCO won't validate and the second is I never received any notification from NCO about this debt. I only found out about it because I noticed it was on my CR. Am I on the right path?

I guess I will have to DV the new CA. The new CA offered a settlement of 45% off but I must accept within the 30 days from the date of this notice. Eek! I guess I won't be getting the offer because I will be sending a DV to them.

Also, I am unsure but I thought I read someplace that the CA must be registered in your state in order to collect on a debt. If that is true then I don't think this CA can collect because when I checked on the business it stated that the business create date was 11/2008 but the status was expired. Any suggestions or opinions?

Re: can CA post a TL as being an open account?

Anonymous — Wed, 25 Nov 2009 23:29:29 GMT

@llecs wrote:
There's some debate whether or not is can report as open. Per FICO scoring it doesn't matter at all. FICO still reads it as a CA.

Can a CA report double? Yes, over a multi-year period. A CA can add interest. How far of a time frame was it between the time the OC reported the $1600 and when the CA reported the $3300? Also, which CA is this?

I respectfully disagree that having CA reported under accounts or collections is scored the same, at least IME.

I had a CA with Midland Credit Management. On EX and TU they were properly reported as a collection in the collections category. On EQ Midland reported as an account 120+ late open.

And the score difference: EX and TU scores were right around 700 while EQ was 806. I successfully got PFD. When this was deleted, my EQ score went up 2 points to 809 while my TU shot to 810 and EX to 788 (EX had shorter AAoA).

TU and EQ reports were identical in every way. EX was identical with the exception that I did not have 2 older closed accounts reporting. This was my last CA and last derog and caused over a 100 point FICO difference.

While a LO review may look at them equally, the FICO scoring did not. Again, this IME and FYI.

Happy Thanksgiving to everyone!

Re: can CA post a TL as being an open account?

amber1 — Wed, 25 Nov 2009 23:37:19 GMT

I Haven't purchased my scores through the CRA's but my FICO is really low at 600. I hope to improve it by removing the medical bills.

Thank You and I hope you have a great Thanksgiving Day!

Re: can CA post a TL as being an open account?

RobertEG — Fri, 27 Nov 2009 02:28:02 GMT

A CA is never a TL. Trade lines are accounts between you and the creditor, not a collection agency. You dont open an account with a CA.

CA "accounts" are solely between the CA and the CRA for reporting collection activity, and are not a TL. A CA cannot update any data in your OC account.

You have a closed OC account, and have a separate, open collection account with the CRA.

Re: can CA post a TL as being an open account?

AndySoCal — Wed, 02 Dec 2009 02:37:10 GMT

Collection accounts are trade lines always have been. The open as an account type is not refecting if the account is open or closed. The open account type is reflecting a balance in full in a certian time frame (30, 60, 90 days etc). American Express offers or used to offer a credit card where it was balance in full each time the card was used. Collection accounts fall into this account type catagory they are not a revolving or installment or a mortgage account type.

Re: can CA post a TL as being an open account?

Anonymous — Wed, 02 Dec 2009 06:05:12 GMT

@RobertEG wrote:
A CA is never a TL. Trade lines are accounts between you and the creditor, not a collection agency. You dont open an account with a CA.
CA "accounts" are solely between the CA and the CRA for reporting collection activity, and are not a TL. A CA cannot update any data in your OC account.
You have a closed OC account, and have a separate, open collection account with the CRA.

True, this is how it is supposed to report. However, that isn't always how it ends up reporting. On my EQ report, Midland is showing up as an open account 120+ days past due, not as a collection. When I pull my report from myFICO, it shows up under Accounts, not Collections. The OC is not reporting at all.

At one point I had a "single" collection reporting on EQ (Pinnacle). Once it was deleted, my score shot up 28 points because my "last" collection was deleted (even though I still had other derogs on my report). I even checked an old EQ report I pulled through annualcreditreport.com (it was pulled the month before Pinnacle was deleted). On that report only Pinnacle was listed under Collections. Midland was listed as an account.

I've seen others post about Midland reporting as an account vs. a collection on a report. On EX & TU they appear to be reporting correctly as a collection. They are scheduled to fall off my report next summer, so I'm just going to let it fall off. It sucks, though, that they update every month on my reports.

Re: can CA post a TL as being an open account?

RobertEG — Wed, 02 Dec 2009 08:13:50 GMT

I must disagree. A trade line is an account opened into by contract between a consumer and a creditor.

CA reporting to a CRA establishes zero agreement with the consumer, and is just an FCRA reporting function between the CA and the CRA.

There is absolutley no reporting provision for a CA that entitles them to ever enter anything relating to monthly delinquencies as an OC.

They report only the date the CA was reported, and therafter its status as open, paid in full, paid in part, or deleted.