Have a collections that was paid off in July 2018, which is relfected correctly in the tradeline pasted below. But it also shows the CA keeps updating the balance/status/reporting dates, as shown below. Is this allowed? I am already fighting this agency because they never informed me of the debt before reporting and didn't even start reporting the debt until a week AFTER it was already paid off, which i believe is not allowed either.
It was a utiltiy bill and due to moving, the utility company sent me an email for my last bill instead of a paper bill, so I wasn't even aware anything was owed until 2 months later when I called the utility company to start new service. I paid them that same day and also learned, from the utility company not the CA, that they had already sent the bill to collections after only 15 days late (which, i found odd in itself). By this time it had already been in collections 2 months, but had not been reported yet. 7 days after I paid, the CA reported it. In addition, each credit reporting agency is reporting this information differently. Thanks in advance for any info.
|L J ROSS & ASSOCIATES|
|Agency Address:||6360 Jackson Rd Ste 1|
Ann Arbor, MI 481039597
|Date Reported:||10/2018 (Is this allowed?)|
|Date Assigned:||06/2018 (Incorrect: OC told me in was assigned to CA on 16 May 18. And each credit report shows different assigned dates)|
|Original Creditor Name:||COMED|
|Account Owner:||Individual Account.|
|Original Amount Owned:||$128|
|Date of 1 st Delinquency:||05/2018|
|Balance Date:||10/2018 (Is this allowed)|
|Last Payment Date:||16/07/2018 (Incorrect: I paid off the acct on 12 July, they started reporting on 19 Jul)|
|Status Date:||10/2018 (Is this allowed)|
|Status:||P - Paid|
There is no formal, statutory or regulatory prohibition against continued,, updated reporting after a collection is paid.
The requirement is that the debt collector promptly report the collection as paid, with a $0 balance.
In fact, if any other previously reported information is ever, at any subsequent point in time, determined to be inaccurate or in need of update, FCRA 623(a)(2) requires the debt collector to make updated reporting so that the information reflects its current accuracy.
The common reporting manual used by the big-4 CRAs includes instructions to discontinue regular updates after a collection is paid and updated to show $0 balance if no changes are involved. That is based on a business need by the CRA to reduce unnecessary and redundant work on their part, and is not a violation of any formal prohibition.
The primary issue is whether the updates contain any inaccuracies, and from a practical viewpoint, whether the updating is affecting scoring.
Once a collection is reported as Paid (or settled for less), with a $0 balance, any updating reporting provides a current status of non-delinquency, and thus does not extend the reporting of time since initial delinquency. Thus, there is no increased negative scoring impact created by the update, and thus unless the updated reporting creates some other negative perception upon a manual review, I would lkely not dispute.
In the posted scenario, the date that the collection authority was assigned to the debt collector does not impact scoring or affect the credit report exclusion date of the collection, and is not a specific item that I would contest by way of a formal dispute.