Credit report Confusion

[aliciannalston]

I am looking over my three reports from each bureau. Can someone please clarify for me. On my EQ and TU report I have two accounts that went into collections and report shows CO. On my EX report the same accounts are listed for the last year as CO but also has 11 - 90 days+ late for those same months. Is that how it should show and what impact does that have on my score? I am thinking it does because my EX score is 50 points less than the other two. 

[RobertEG]

Look at the reporting of a CO as simply an additional comment placed in your file that the creditor has determined that you are not going to pay the debt.

It stems from an accounting measure they took, and is not actually an additional delinquency, and its reporting does not affect the consumr's continued obligation for the entire debt, or the accural of further delinquencies

There will invariably be prior delinquencies before a CO is taken.  They may or may not have been reported.  Ignore the CO, and determine whether you were actually delinquent in the months so reported.

AS to how FICO scores increasing severity of delinquencies, it appears to be somewhat of a mystery, as I have never seen a specific statement from Fair Isaac.

There are, or course, two possibilities.

One, each and every delinquency is scored, and thus each has compouned effect.  For example, a 30 late followed by a 60 late is scored as two separtate neg pts.

Two, higher levels of delinquency inherently account for the scoring impact of the lower level, and thus the CO, for example, would be scored the same regardless of whether and wtat other monthly delinquencies were reported.  If a 90-late, for example, were to be deleted, then scoring would revert to the effect of the next highest level of reported delinquency, such as a 60-late.

The second option makes more sense to me, as the CO, for example, necessarily has prior monthly delinquencies, and thus whether or not the creditor chose to report them, the end result is the same.

[aliciannalston]

Its for an account that was sold to a third party for collection in which whom I never received anything from or never arranged any payments or anything with them. So with me not ever hearing from or communicating with them for payments is it accurate for them to report the 90 + late?

Example in the timeline it shows.....  CO one month, then OK every month for that year and then CO again the beginning of the next year when I never paid or even heard anything from them let alone paid them and then stopped. Im so confused. 

[RobertEG]

You can only have lates occur on an OC account, as reporting of a late requires that you have an account agreement that permits them to set billing due dates, and thus have lates with them.  YOu dont have reportable lates accruing under a debt collector.

Debt collectors can report prior history with the OC, but not their own lates.

The CO is really immaterial as to the occurence of lates on an OC account.  It is a separate reporrting.

So the issue is, were you actually late with the OC in the months they reported?

Once they sold the debt, all new monthly delinquencies would cease.

[Shogun]

A CA can list the status of the OC.  Say you were 90 days late with the OC, the CA can list  Status;  90 days late.  A CA however cannot list monthly lates in your payments, this is for the OC only.