Closed accounts

[Anonymous]

Is a "closed" collection account just as bad as an open collection account? I have 2 "closed" charge off collection accounts i want to get removed, and one that is open, I'm trying to figure out the best course of action.

Any help or guidance is much appreciated!

[RobertEG]

A debt collector reports that their collection is closed when they no longer expect to or can continue authorized collection activities.

One reason for closing of a collection is that the debt collector no longer has collection authority, either by termination of an assigned authority from another party who owns the debt, or if the debt collector was the owner of the debt, they sold it to another.

In such circumstances, CRA policy instructs the debt collector to delete their reported collection.  That CRA policy is to preclude subsequent inclusion of two collections on the same debt in the event that a new debt collector should obtain collection authority and report their collection.

If you know that the collection authority has been terminated on an unpaid debt, contact the CRA and request deletion of the collection.

Another reason for closing of a collection is that the debt has been paid, and thus there is no longer any delinquent debt.

In such circumstances, the CRA policy instructs the debt collector not to delete their reported collection.

That policy is to retain the completeness of reported credit histories, thus maintaining the value of their product (credit reports) to purchasers.

[Anonymous]

In TU one of my collections says closed 0 balance. In EQ the same collection says closed 1636 balance. Why are they different on the two CRAs

[RobertEG]

Was the debt paid?

If so, then the collection was required to have been promptly updated to show closed, $0 balance.

They apparently updated with only one CRA, and not the other.

I would recommend making an informal call to the debt collector, and remind them of their obligation under FCRA 623(a)(2) to have promptly updated their reporting to reflect its current accuracy.  I would reserve a formal dispute unless/until they fail to correct within their next regular, monthly updated reporting.

[Anonymous]

Most places will list the reason for a closed account

[RobertEG]

The post was stated as being related to a reported collection, and not related to a closed account of the consumer.

It is apparently related to reporting of a collection, which is not an account of the consumer, it is the reporting by a third party of their authority to collect on an account of the consumer.

[Anonymous]

debt was not paid.

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@RobertEG wrote:

Was the debt paid?

If so, then the collection was required to have been promptly updated to show closed, $0 balance.

They apparently updated with only one CRA, and not the other.

I would recommend making an informal call to the debt collector, and remind them of their obligation under FCRA 623(a)(2) to have promptly updated their reporting to reflect its current accuracy.  I would reserve a formal dispute unless/until they fail to correct within their next regular, monthly updated reporting.

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[Anonymous]

[RobertEG]

The printout is that of the OC loan, not of a collection reported by a debt collector.

It shows a charge-off.

The account was opend in 04/2012, with only one payment being shown.

Thus, the DOFD is apparently 06/2012, which would result in exclusion of the reported charge-off no later than 12/2019.

If you want removal of the charge-off prior to its normal exclusion date, then you can offer payment of the debt in exchange for their agreement to delete the derogatory reporting (or the entire account).

Meanwhile, if no  collection has yet been reported by a debt collector, there is always the chance that the creditor could assign or selll the debt, resulting in the addition of an actual collection.