You are apparently referring to closing of a collection, and not closing of an account you have with a creditor.
Closing of a collection is a statement by the debt collector that they are no longer pursuing collection on the debt.
It could simply be an error in their reporting, or it could signify a positive statement to the CRA that they are no longer pursuing collection on the debt.
The usual reason for closing a collection that still has an unpaid debt is that the debt collector has had their collection authority terminated.
If the debt collector did not own the debt, that usually signifies that the owner has terminted their assignment of collection authority to the reporting debt collector. If the debt collector owned the debt under their collection, closing is required if they sell the debt.
Howver, there are instances where some debt collectors have chosed to report closing of their collection even if they still retain legal collecition authority. Some debt collectors, for example, have chosen to temporarily report closed status if they have received a timely DV request, which temporarily imposes a cease collection bar upon them.
CRA policy, as clearlly stated in their common credit reporting manual, instructs debt collectors to delete their collection if their collection authority has actually been termnated and the debt remains unpaid. That is an internal CRA policy intended to prevent two simultaneous collections from showing on the same debt, and the policy is not a requirment of either the FCRA or FDCPA.
I would begin by calling the debt collector and making inquiry as to whether their collection authority has been terminated.
That is particulary important if under a payment plan with them, as the payment plan may now legally have been acquired by a new debt collector. You should be advised if that is the case.......
