Collection Agencies reporting as revolving account

[newmom24]

Hello.

I have two collection accounts (Porfolio Recovery & Midland MCM) that are reporting on my CR as a revolving line of credit.  I recieved an offer from Midland to settle the $768 account for $392 (and the debt would appear PAID in Full). I was tempted to pay this and get a PFD just to bring my UTI down in hopes of getting a boost in my score. Last night, reading through the forum I read it is ILLEGAL for any CA to report as a revolving acct, and was given very helpful information to help get it deleted completely.

Excuse my ignorance, but is it better to just pay the debt (I do owe it) or should I pursue getting it deleted without payment through the AG, etc? 

Any information given is helpful.

Thanks

[RobertEG]

Collections are not accounts with the consumer, as you have no account agreement with a debt collector.

There seems to be a growing practice among certain debt collectors, particularly factoring companies, to report their collection as an installment or revolving account with the consumer based on their purchase of the debt. 

First, be certain that your credit report is actually showing such reporting.  It is not uncommon for commercial credit reports to merge reportings done by OCs and debt collectors, often listing delinquencies, etc., reported by the OC under the collections heading.

If you are certain they actually reported as a creditor, you can send them a direct dispute, and/or file a complaint with the FTC, your local BBB, or your state AG.

However, resolution of the matter won't necessarily result in any deletion of the collection. They will assert that such reporting was their honest interpretation of its status.

Information found to be inaccurate does not compel its deletion.  The furnisher always has the opportunity to corrrect the inaccuracy. Deltion under the FCRA is only required if they fail to verify the accuracy of their reporting or to correct it so as to make it accurate.

It is possible that if you pursue the matter, you could obtain a sanction by the FTC or a mandate by a court to delete.  However, that is iffy.  They only have a clear violation of the FCRA if their reporting was knowingly inaccurate at the time they reported.  They are not apt to make such an admission or willingly delete.

And any deletion of credit reporting would not excuse the debt.

[newmom24]

Very helpful information ... thank you.

With that, I am leaning toward paying the debt off using the settlement offer. I will attempt a PFD, but if that's not successful, I'll send a GW. My goal is to get UTI down, which will tremendously help my score (currently at 89%). 

[raisinitup]

I have the same thing happening on my report, an original creditor (hospital) reporting as a revolving account showing a 180 day late every month since 2011. I know it's killing my score but not sure exactly how to get them to correct it. It's PIF.

[Shogun]

Send them a GW, if no go, file a BBB complaint.  I would make sure I pull a good report and verify that's how it's reporting.  Some of the FAKO credit places don't have everything quite lined up as it should.  Where are you getting your report from?

[newmom24]

They are FICO reports for TU and EQ.

What's ironic is the TU report shows Portfolio and Midland as Collection accounts. EQ reports them as revolving/installment accounts.