2 "Collections" NOW showing as "Accounts"

[prolificjinx23]

My hubby has 2 medical baddies thru MedClear, Inc. that where listed as collections but as of last week they were "moved" to show under accounts & this has caused a drop of his score by 55 points...... Is this legal???  It's the ONLY change/alert he's received in weeks!

[LIGHTNIN]

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@prolificjinx23 wrote:

My hubby has 2 medical baddies thru MedClear, Inc. that where listed as collections but as of last week they were "moved" to show under accounts & this has caused a drop of his score by 55 points...... Is this legal???  It's the ONLY change/alert he's received in weeks!

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Collections reported under account section, FICO still scores it as a collection.

I understand that's why you received an alert/change,but I don't think that's why your CS dropped 55 pts.

Check your CR's line by line. Check to see, if any balances have changed, or if there was a late reported.

Let us know what you found, after looking at your CR's again.

[valley_man0505]

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@LIGHTNIN wrote:

Collections reported under account section, FICO still scores it as a collection.

I understand that's why you received an alert/change,but I don't think that's why your CS dropped 55 pts.

Check your CR's line by line. Check to see, if any balances have changed, or if there was a late reported.

Let us know what you found, after looking at your CR's again.

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Are you sure about that?  I once had two collections showing on all 3 CRA's.  However, on my EQ report, one of those two was listed under accounts.  I later had one of my two collections deleted.  The one that was deleted was the one that EQ was showing as a collection.  This led to a HUGE score boost on EQ since my EQ was now showing no collections since the other one was listed under accounts.  However, TU and EX barely moved since they still showed one collection.

However, with that said, if collections were scored differently if listed under accounts, I would expect the score to INCREASE, not decrease if collections were moved to accounts since this would essentially rid you report of CA's.  But, then again, rebucketing is possible.

Another thing to consider is where you are getting your "report" from.  Many credit monitoring services will show collections under "accounts", while a report directly from the CRA will still show them properly as collections.

[LIGHTNIN]

When a debt is coded as a collection,then reported to the CRA's, it is scored as a collection. 

The location of the collection, on the CR  shouldn't matter.

[valley_man0505]

In my case, I had a collection that was coded as a collection.  When I paid it, they updated the balance to $0.  On TU and EX, it remained a collection.  On EQ, though, it somehow changed from a collection to an installment loan 120+ days late with a $0 balance. 

It is correct that the "location" of the tradeline doesn't matter--it is how it is coded.  However, it typically will not move from one category to another unless it gets re-coded for some reason.  Of course, as I mentioned in a previous post, the "location" on your report will often depend on where you are getting the report.  Some credit monitoring sites will show collections under "accounts" while others will show them under "collections", which is why I (and Lightnin) say the "location" isn't important.

In other words, if you pulled a report from Monitorning Service A and a particular tradeline was listed under "collection" and then you pull your report from Monitoring Service B and that same tradeline is listed under "negative accounts", there really isn't any difference--it is just how that particular service choses to display it.  The coding (and, therefore, the scoring) is the same either way.

[LIGHTNIN]

valley_man050, Thanks,  your detailed advise was better then my post.That was exactly what I was trying to say, but yours was better.

[RobertEG]

To empahsize the point, reporting done by a debt collector is stored in a totally different segment of the consumer's credit file, called the "K-Segment."

OC reporting is stored in the "Base Segment."

The only type of account code permitted for a collection is "collection."  It is not reported with any account type under an OC account.

What you have is probably just poor credit report formatting.  A credit report is not your credit file, and FICO runs against your credit file.