A collection agency is reporting themselves as an open account

[Anonymous]

I have a collection agency reporting themselves as 120++ days late on the accounts section of my credit file. Aren't they supposed to list themselves in the collection section?

[RobertEG]

Is this based on the prior reporting by the OC of a 120 day late?

You are correct, a collection account report to a CRA is stored under a totally different reporting account than those previously reported by an OC.  Reporting by a CA does not provide for or permit them to report delinquency dates on the original accouunt.  You are never, by definition, 120-days late based on their collection activity.  Late goes back to the legal due date on the OC account.

However, if the OC never previously reported to the CRA, then if the CA makes a first post of its collection activity, they report the DOFD on the account.  Maybe that is what happened, and what is showing?

[Anonymous]

Collections are to be reported as collections and IMO, can not report late payments.

[palmbeachwife]

How do you resolve this? If a collection account is posting in the accounts section should you dispute it? If so, what do you dispute?

[corkyduckfan]

That is a fantastic question.  I am very curious to see the response.

[Anonymous]

When I got my mortgage, the lender took care of getting the CA to report correctly.  As a result of their communications, the TL was removed.  The CA was reporting a 120+ late payment and they had not responded to my requests for validation (except by filing an affidavit from a CA employee). 

I think if you are persistent (letters and calls), you can get the 120+ late payment removed through the CRA.  However, if the CA has clearly violated the FDCPA, then I would talk to an attorney who practices in that area.  I had spoken with an attorney who was interested in taking my case, but the lender suggested I let them make an inquiry first.  The 120+ day late was removed right away and the TL was deleted 45-60 days after my mortgage was funded.  I haven't heard from the CA again. 

Keeping my fingers crossed until the OC TL is removed at the beginning of next year.

[palmbeachwife]

I just filed a complaint with BBB on Asset Acceptance about reporting a paid account collection account as 120+ days past due. I have had some success recently with a second collection from this same agency by reporting them to BBB. I don't know if it will help, but I've got to try something.

[Anonymous]

Palmbeachwife,

What was the outcome of your filing to the BBB on Asset Acceptance?  I have a similar problem with an account that was paid and they recently updated the status to paid, but 120 days late.

Urgh, I just written them a letter, crr, waiting for a response. 

Thanks

[RobertEG]

Actually, it is not possible for a debt collector to report as an open account, or to report monthly account delinquencies.

There are NO reporting codes available to debt collectors to report monthly 30/90/120+ deliquencies.  Not possible.

When you open an account, it is with the original creditor.  Dates of pament terms, late payments, etc, are specified in  your OC account.

If you miss a billiing due date, they can impose terms on the OC account, such as late fees, and mabe reset of your APR.

They cant report a late to a CRA until you have gone more than 30-days past the billing due date.  So then, monthly derogs can begin to show up on your CR.

If the OC then reports the ovedue debt to a debt collector, the debt collector has NO account with you.  No due date.  NO ability to report any 30/60/90+ lates.

You dont have any account with the CA.  The collection "account" is only one of credit reporting between the CA and the CRA.

CAs dont determine which portion of your CR they are listed under.  That is up to the party that is selling you a consumer CR to properly report how it is listed,.

Consumer credit reports are notoriously known for reporting a mixed bag of both OC and CA separate reportng, and making it look like it was all reported by eitehr the OC or the CA, 

What you are probably seeing is a crappy commercial credit report, rather than incorrect reporting by a CA,

[RobertEG]

When an OC opens, and subsequetly reports information to your credit file, it is reported and stored under the "base segment" portion of your credit file.

When a debt collector who is not your legally-contracted original creditor reports to a CRA, their reporting is stored under a totally different portion of your credit file, called the "K-segment.."  K-segment reporting does not include any reporting of monthly derogs on the OC account.  It cant.  That is not their business, or abillity.

When you receive a commercial credit report, they might list, under one heading, information extracted from both your base and K-segments, but that is usually a fault of the one merging information from different portions of your credit file in producing their sale to you of their commercial  "credit report," and not necessarily an indication of false or improper reporttng by the OC or debt collector.