Question about collections/score

[SDMarik]

So it looks like I had a collections account show up on my credit report, I don't really know what it is. The only thing I can think of is that it's from a old electric bill that did not get paid when we moved from our old house 4.5 years ago. However that's unlikely and I doubt I wouldn't have paid it.

It seems the collection agency parked it on my report, I did not receive any calls or written notification about this possible debt.

I am obviously going to dispute this, however in the meantime it has sunk my credit score 45 points.

I have exceptional payment history on everything else and have a credit utilization under 10 % all of the time.

I have heard from people that credit card issuers can close someone's account t if their credit report gives the issuer reason to worry. I do know some of the larger issuers do periodic soft pulls to check on things.

Do I have any reason to think I may get one of my credit cards canceled while I take care of this rogue collection for $400? 

Thanks in advance!

[Anonymous]

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@SDMarik wrote:

I have exceptional payment history on everything else and have a credit utilization under 10 % all of the time.

I have heard from people that credit card issuers can close someone's account t if their credit report gives the issuer reason to worry. I do know some of the larger issuers do periodic soft pulls to check on things.

Do I have any reason to think I may get one of my credit cards canceled while I take care of this rogue collection for $400? 

Thanks in advance!

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There is always the possibility that a lender could take adverse action and either reduce your limits or close your account.

That being said, I do not believe one rogue collection would cause this. If other factors changed, such as credit utilization spiked, late payments started being reported, etc. then you would have cause to worry. My wife just had multiple rouge collections show up on her reports, 6 items around $50 each, there were no adverse actions taken by lenders during the ~3 month time span it took us to get these sorted out.

You should be fine and I wouldn't worry too much about it.

[FireMedic1]

Call the old electric company and ask them if it was them who gave collection authority to this company. If so ask if you pay them directly if they would kindly have the CA removed from your reports. Try that first before contacting the CA. You should have a 30 day grace period before the CA will then say its valid for not contacting them.

[SoCalGardener]

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@SDMarik wrote:

So it looks like I had a collections account show up on my credit report, I don't really know what it is. The only thing I can think of is that it's from a old electric bill that did not get paid when we moved from our old house 4.5 years ago. However that's unlikely and I doubt I wouldn't have paid it.

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Did you contact the collection agency that reported it? That's where I'd start. If it's a mistake, why waste your time and energy chasing possibilities, like the electric company? It sounds like you're very responsible, which makes me think this is most likely a mistake. Let us know how it turns out!

[FishingGuy]

Sevral years back I had a situation like this when selling a house, I believe I didn't get the mail, and it went to collections.....  I disputed it's validity, though paid it in full since it was a small amount (less than yours) asking for it to be removed.... score went up 60 plus points.  Sounds like a similar situation....  don't know what your outcome will be..... but that was mine.

[FireMedic1]

@SDMarik 

Who is the CA? It may be one who PFD. You never mentioned the name.

[FireMedic1]

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@SoCalGardener wrote:

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@SDMarik wrote:

So it looks like I had a collections account show up on my credit report, I don't really know what it is. The only thing I can think of is that it's from a old electric bill that did not get paid when we moved from our old house 4.5 years ago. However that's unlikely and I doubt I wouldn't have paid it.

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Did you contact the collection agency that reported it? That's where I'd start. If it's a mistake, why waste your time and energy chasing possibilities, like the electric company? It sounds like you're very responsible, which makes me think this is most likely a mistake. Let us know how it turns out!

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Its always better to contact the OC to see if they own the debt. If the OC owns the debt the CA is only collecting on their behalf. Pay the OC and the CA can be recalled. Its not a waste of time actually. Main goal is to find out who owns the debt. Thats who you want to work with. They hold the power when it comes to PFD.

[SoCalGardener]

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@FireMedic1 wrote:

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@SoCalGardener wrote:

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@SDMarik wrote:

So it looks like I had a collections account show up on my credit report, I don't really know what it is. The only thing I can think of is that it's from a old electric bill that did not get paid when we moved from our old house 4.5 years ago. However that's unlikely and I doubt I wouldn't have paid it.

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Did you contact the collection agency that reported it? That's where I'd start. If it's a mistake, why waste your time and energy chasing possibilities, like the electric company? It sounds like you're very responsible, which makes me think this is most likely a mistake. Let us know how it turns out!

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Its always better to contact the OC to see if they own the debt. If the OC owns the debt the CA is only collecting on their behalf. Pay the OC and the CA can be recalled. Its not a waste of time actually. Main goal is to find out who owns the debt. Thats who you want to work with. They hold the power when it comes to PFD.

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Since the OP doesn't know *who* the original creditor is, it seems easier [to me anyway] to contact the collection agency, rather than go on a wild goose chase trying to track down what it MIGHT be. The CA can tell the OP who the OC is. That's how I'd handle it.

[SDMarik]

Oh sorry about that, the CA is Eastern Account Systems.

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@FireMedic1 wrote:

@SDMarik 

Who is the CA? It may be one who PFD. You never mentioned the name.

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[Ellifino]

Curious how this turned out?  I'm in a similar boat with eastern account systems- rogue collection from 5 years ago showed up out of nowhere, just when I'm preparing to buy a house... I'd pay in full today if it would delete the collection it from my credit report!