Collection is open

[dynamicvb]

I noticed something yesterday on my report that has me wondering. I had a medical collection popup last year, that I did not agree with as it should have been a copay. Anyway, I was in the middle of applying for a mortgage and I just paid it and did not argue since it was only 45 bucks.

Its been paid since about May, but I notice its marked as paid, but it shows open and is updating every month. I've read that any medical under 100 does not affect your FICO score, but I'm wondering with it being open, then it may be hurting me. Should collections be marked as closed once they are paid and could this be dragging down my EQ score?

[Brooklyn2018]

Has the date you paid show in the update status on the collection? If it does and it is several months have passed then it is not updating. I have collections with notations that they are closed/open and have $0 balances. But, all their updating have stopped on the day or last date they reported. It shows THAT date not any date AFTER that.
I don’t believe the notations matter as FICO does not consider it when it comes to scoring only a manual review.

[Brooklyn2018]

I would call the CA and ask them to correct it. If they give you the runaround then dispute it with CRA’s. Send in copy of receipt and they’ll correct it.

[RobertEG]

A collection is only open when the debt remains delinquent and the debt collector still has active collection authority.

Payment of the debt terminated both, and thus the collection was required to be updated to closed, $0 balance.

If a collection continues to show open with a balance, if the FICO version is including the medical collection, then any subsequent updated reporting of continued open status is considered an extension of the period since intitial delinquency, that effects scoring.

Even if the collection is not being included in scoring due to the version of FICO being used, if it still shows as open with a balance, it is a negative factor upon any manual review, as it shows as a continued delinquency and unpaid debt.

If informal requests to update to Closed, Paid, $0 balance do not yield timely results, filed a dispute with the CRA under FCRA 611.

Cite FCRA 623(a)(2), which requires a furnisher to "promptly" update as necessary to maintain current accuracy of their reported information.

[dynamicvb]

Thanks for the explanation, Robert. The amount is 0 and its marked paid just the account status is open. I'm going to give them a call today and see if they will correct the mistake or just remove it. I should have negotiated a pay for delete on this one, but that was before I found this forum.