Collection Agencies are violating the law, if they report monthly, right?

[Anonymous]

I've read that as soon as a defaulted account is sent to a collection agency, either as a defaulted account, failure to pay or a charge off, that collection agencies "AREN'T supposed to report monthly, as if it's an active (open) account.

Am I wrong about this?

The reason, I asking is,  after the '08 finiancial crisis I was laid off, but at that time I had no debt, and being that I was getting unemployment, I didn't want to be tempted by credit cards and other loans, so from 2008 until 2018, I never applied for anything and I used the Dave Ramsey method of paying cash for everything and if I didn't have the cash, I simply didn't get it.

In 2012, used my G.I. Bill and went back to college, but because I waited nine yers to use it, the G.I. Bill only covered 80% of my tuition.

Due to being over-sharge for tution, I regrettfully allowed 17 separate student loans to go into default, and when i started to care about my credit in June 2018, they student loans, an Xfinity collection and a Medical collection were all o my credit report, but they only report "ONCE," unless the debt was sold to another collection agency, then they'd report "ONCE," as the old collection agency disappeared from my credit report.

Now, when I wasn't doing anything with credit, they reported once, which was the initail time they reported to the bureaus and that was it, BUT, as soon as I started the rebuilding process of my credit by obtaining secured credit cards and secured loans, all of which I've manged perfectly, now all of a sudden all 17 student loans, the Xfinity collection and the medical collection are reporting "MONTHLY" as if it's an open account and I've read forums and watched YouTube videos and even googled that they aren't supposed to do that, amd i right? Can I stop them or am I SOL?

Please help.

[thornback]

No.   They are not violating the law by reporting monthly.    So long as the debt remains unpaid,  collection agencies may update their tradelines monthly, or sporadically, until the tradeline reaches the 7 year reporting statute and is removed.  

If you pay the outstanding debts owed, the reporting will stop (after a final reporting of the debt being paid). 

For the student loans -- have you looked into Student Loan rehab services? Federal student loans do not fall under the same 7 year reporting statute as other debts -- so you should look into rehabbing these loans. 

For the medical collections -- have you been in contact with the original creditor / doctor's office / hospital to see if your insurance can be rebilled, or if the debt can be paid directly to them with a recall of the collection?  You can also try a PFD (pay for delete) with the collection agency if you can afford payment. 

For other collections -- if you provide the name of the collection agency handling the debt, someone with experience or knowledge of the agency may be able to tell you the best course of action to handle it. 

Starting to report again after some time of not reporting is a common tactic used by colleciton agencies when they see new, positive activity on your credit reports  -- it's a way to make you stop ignoring them and, hopefully, pay up.    But it's not illegal so long as they have acquired collection authority from the original creditor, or have purchased the debt from the original creditor. 

[Remedios]

Collection agency can report for 7 years (technically up to 7.5 years) from the day account went delinquent, not from when account was placed for collection
If you pay them, reporting will stop. Remaining unpaid is what makes them "open" and "active"
The reason they are reporting again, is to get your attention. They noticed changes on your credit report, and that's a perfect time for them to attempt to collect.
As you can see, it's working.
This is fairly common occurrence. You can pay them, settle, or wait till they fall off.
In any case, reporting within the time period specified above is permitted.
You should get a copy of free annual credit report to see DOFDs or projected removal dates.

Student loans are different, certain types will stay on your CR until paid, but I will defer to others on those.

Good luck with your future rebuild

[AllZero]

I saw the 'so-and-so is currently typing a response' icon so I didn't reply to the answer. 😉

[thornback]

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@AllZero wrote:
I saw the 'so-and-so is currently typing a response' icon so I didn't reply to the answer. 😉

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🤣😂 

[Remedios]

No one is typing right now.

[CreditInspired]

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@AllZero wrote:
I saw the 'so-and-so is currently typing a response' icon so I didn't reply to the answer. 😉

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Hi AllZero

Where do you see this?

[thornback]

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@Remedios wrote:
No one is typing right now.

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I really feel like we need this feature now... 

[thornback]

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@CreditInspired wrote:

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@AllZero wrote:
I saw the 'so-and-so is currently typing a response' icon so I didn't reply to the answer. 😉

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Hi AllZero

Where do you see this?

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Hysterical.... 

Get in on the joke, CreditInspired: https://ficoforums.myfico.com/t5/General-Credit-Topics/What-should-I-do-with-this-MyJewelersClub-inq...

[AllZero]

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@CreditInspired wrote:

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@AllZero wrote:
I saw the 'so-and-so is currently typing a response' icon so I didn't reply to the answer. 😉

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Hi AllZero

Where do you see this?

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As mentioned up thread, you need to activate the feature. It'll require a triple hard pull inquiry. 😉