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CR Confusion!

K7Kate
Established Member

CR Confusion!

I wish I had a better understanding of laws, right and general information of how credit reports work.  I've been working for a few years now on cleaning up my credit.  As an example, my TU credit score did improve 81 points in 1 year.  I don't know if that's good or not but I was proud.  I have 4 account (credit card accts) in collections showing on my CR that the "date opened" was as recently as 2008.  They're showing I'm 120+ days past due.  To me (again, I don't understand this!), it appears that I opened accounts and quite quickly defaulted on them.  How do CA's have to report this stuff?  I was in a "debt relief" program for a couple of years, starting in 2005, and one of the rules was I could not take out any new credit, such as credit cards - which I didn't.  In 2008 I finally got a good credit card which I give credit to really giving my score the boost in the right direction.  So I know that from 2005 and 2008 I had no new credit cards.  What are these collection agencies doing?  Can they report that the "date opened" on the accounts of mine are as recent as they claim?  They're not.  I hope I'm making sense, I know what I'm trying to say.  I have a couple of charge/offs which have 0 balances, and accurately show how old the accounts actually are. 


I realize its going to take time for my credit to be repaired but I wish it would reflect more that in the past 5 years I have been a responsible borrower and have no been late on anything since then.  I know I'm not a star student but I think my recent borrowing habits should be just as obvious as a rough time in my life 8 years before. 

 

Again, I guess I'm asking, can an account in collections, that hasn't had any activity since 2005 be reported as being opened in 2007?  Ugh!  I'm so confused.

 

Thanks!  Sorry to ramble!

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2 REPLIES 2
guiness56
Epic Contributor

Re: CR Confusion!

Did you have 4 CC that went to collections?  If you did and these were included in the debt relief program, there should be some sort of annotation on your report about this. 

 

The "open date" is the date the CA received the account in their office and has no bearing on when it will come off your report.  The date they reported will have an impact.  If they get the account in 08 but don't report until 2010, it will drop your score due to it being a new collection.  It does not matter when the account was opened with the OC for this. 

 

As for the lates, a CA cannot report lates themselves.  They are reporting what the OC reported to them, which is legal.

 

So, to answer your question.  Yes, an account in collections that has not had any activity since 05 can be reported as being open in 07.  If it was in collections with a prior CA, they probably sold it to another CA later down the road.

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RobertEG
Legendary Contributor

Re: CR Confusion!

A lot of the confusion comes from the way commercial credit reports present their information.  They merge information from different portions of your credit file, often in a very confusing manner.

In very basis terms, you have,for any debt, two possible and separate "accounts" in your credit file.  The OC account, and a CA account.

 

The first thing I would do, in attempting to understand how credit reporting works, is to get a free and complete non-commercial credit report from annualcreditreport.com.  This report will separate the various accounts, and allow you to see the dates and reporting under each.

 

The first type of "account" is the OC reporting.  Everything in there is reported only by the OC. This includes date of opening of your account with the OC, any monthly delinquencies reported on the OC account while it was open, teh DOFD on the OC account, and any charge-off of the debt taken by the OC.

 

The second, and totally separate, type of "account" is that posted by a debt collector.  The date of first reporting of this CA wont be the same as that reported on the OC account as date opened. REporting dates by the CA only refer to their reporting, and never reset anything reported to your OC "account."

There are some fields in your CA account that permit the CA to report dates they obtain from the OC, such as monthly delinquencies, or DOFD.  That does not mean that this information can be "reset" by a CA.  This reporting is permitted primarily because there are some situations where no OC has previosly reported, and the CRA must have certain dates, such as  DOFD on the OC account, to determine the drop off date of the CA from your CR after 7 1/2 years.

 

 

 

 

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