Collections removing themselves?

Anonymous · ‎01-11-2018

Special greetings to everyone.

I am new here, but I'm here for a reason so I'll cut to the chase.

As little as two months ago my Equifax report cited three collections attributed to past debts. All only about a year old, when I was experiencing some financial difficulties. I have done a bit of research and was going to try a 'payment for removal' letter for each one. Last month, as I was sorting the letters out, I logged into Equifax and one of the collections was completely gone. I was surprised; my score even went up a few points as a result. A few days ago, I'm preparing to send out the remaining two letters. I needed the account numbers to attach to the letters, so I called the collections agencies. Low and behold, one agency told me that they no longer held the account. They mentioned that the original creditor had withrawn their claim. He also told me that they reported it for the last time on the same day that the account was moved.

So, of course, I have questions. Should I expect, as the first account has done, that the second be removed from my report on its own? The reporting date was the 17th, might it be gone by the 18th of this month if not reported? What would cause creditors to remove accounts from collections agencies? Can I assume that the original creditors will re-report the debts? Should I be worried?

I'd appreciate ANY insight. I'm working hard to sort things out so I can purchase a home in about 9 months.

Many thanks.

RobertEG · ‎01-11-2018

CRA policy instructs debt collectors to report deletion of their collection to the CRA if/when they no longer have collection authority on the debt, and the debt remains unpaid.

The purpose of that CRA policy is to prevent plural collections from simultaneously showing in your credit report on the same debt.

If a debt collector has their collection authority terminated, the owner can then either sell or assign collection authority to another debt collector, and the new debt collector can immediately report their collection on the debt.

It is not automatic. It relies upon the terminated debt collector following the terms of their credit reporting agreement, and following thru on reporting of deletion promptly after termination of their collection authority.

If a debt collector fails to report deletion and you have clear showing that they no longer have active collection authority (such as the reporting of a collection by a new debt collector with a later Open date), notify the CRA and request deletion per their internal policy.

Anonymous · ‎01-11-2018

Thank you, RobertEG!! This is very helpful information.

@RobertEG wrote:
CRA policy instructs debt collectors to report deletion of their collection to the CRA if/when they no longer have collection authority on the debt, and the debt remains unpaid.
The purpose of that CRA policy is to prevent plural collections from simultaneously showing in your credit report on the same debt.
If a debt collector has their collection authority terminated, the owner can then either sell of assign collection authority to another debt collector, and the new debt collector can immediately report their collection on the debt.

It is not automatic. It relies upon the terminated debt collector following the terms of their credit reporting agreement, and following thru on reporting of deletion promptly after termination of their collection authority.
If a debt collector fails to report deletion and you have clear showing that they no longer have active collection authority (such as the reporting of a collection by a new debt collector with a later Open date), notify the CRA and request deletion per their internal policy.