Closed Collection Account

[Anonymous]

So I am currently in the process of disputing a medical collection account on Transunion. It is still "under investigation" but when I checked my credit report today it showed the account that I am disputing as Closed. It is still visible on my credit report under closed accounts.

I have two questions. The first is does closed collection still negatively impact your credit like an open collection? I am fairly certain it does, but know they tweak these rules and formulas from time to time and I am not totally up to date. 

My second question is if this account is now showing as closed, is it more likely I will win my dispute? I know there is no way for anyone to know this for certain, but just looking for any experiences that might give me hope! 

Thanks in advance...

[RobertEG]

Collections continue to affect scoring until they are deleted or become excluded.

The question is why the debt collector updated the collection to show closed.

Closed will usually mean either that the debt is paid, or that the debt collector has sold the debt.

Since you know it is unpaid, then the debt collector may have sold the debt.  If that is the case, CRA policy instructs that they delete the reported collection based on termination of collection authority with the debt remaining unpaid.

There are rare occurences where a debt collector will temporarity close a collection for which they still have active collection authority to show that, for some reason, they have temporarily suspended active collection.  Receipt of a timely DV request imposes a cease collection bar, and some debt collectors have reported temporary closure until they send validation.  Collections are not officially suspended during a pending dispute, but the debt collector could have chosen to do so.

The only way to know for sure is to contact them and ask.

[Anonymous]

Robert- Thanks for the response. 

I think judging by the fact that I just disputed the collection its probably the second reason you gave.