A collection can become closed with a zero balance remaining under active collection in one of two ways.
First, if the debt is paid, or second, if the debt remains unpaid but the debt collector has had their collection authority terminated.
If the debt is paid, then CRA policy instructs the debt collector to promptly update the collection to show paid, $0 balance, but explicitly instructs the debt collector NOT to delete the collection. They should remain until they reach the required exclusion date of no later than 7 years plus 180 days from the DOFD.
However, in the case of a reported collection in which the debt remains unpaid and the debt collector has had their collection authority terminated for some reason, while they are required to promptly update the collection to show closed, $0 balance, CRA policy additionally instucts that they delete their reported collection.
Were your reporting collections updated to closed with $0 balance because they were paid, or was the debt unpaid and the debt collector updated due to termination of their collection authority?
