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Collection agencies practice question..

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Anonymous
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Collection agencies practice question..

I notice I have amount 5 collection accounts and at least 2 state closed but still reporting at least 1.00 increase  monthly is this even legal/right for them to do?

and can this cause score drop?

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2 REPLIES 2
llecs
Moderator Emeritus

Re: Collection agencies practice question..

I'd argue that it's legal. Per FICO scoring, opened or closed, it doesn't matter. If "closed" is wrong, then what's the alternative? Have them say "open"? It doesn't diminish the debt any or make it less collectable. With regards to the balance, YMMV based on your state. In most states, the CA can add interest. You'd may also have to check your agreement with the OC to see if interest can be added. Unfortunately, their monthly updates can have an impact in certain circumstances; it depends on the version of FICO and how it is reporting.

 

If ready to tackle them and assuming you have the $$$ set aside or assuming SOL had expired, then send each a DV. If they verify and agree, then send a PFD. Of the 5, I bet one or two might give up and disappear.

Message 2 of 3
p-
Valued Contributor

Re: Collection agencies practice question..


@Anonymous wrote:

I notice I have amount 5 collection accounts and at least 2 state closed but still reporting at least 1.00 increase  monthly is this even legal/right for them to do?

and can this cause score drop?


You have some work ahead of you...  I recommend you spend some time here and read the sticky's.  Learn how to DV where applicable, and try to PFD what you owe.

 

Good luck!

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