Collections updating monthly

[Anonymous]

What is the effects of the collections agency updating monthly? I have 2 that I'm debating paying in full (they won't pfd) just so they stop updating it monthly!

What is the effect?

[Anonymous]

If they update monthly now there should be no impact if you paid it.

If the account is reported as closed and a 0 balance they should not update after paid.  Notice I said should.  I don't see the point in them doing that.  I have been looking to see if they are even legally allowed to do so once paid.

[Booner72]

I had a late payments from Nissan updating every single month, it was ridiculous. That car was included in the BK and was also nearly past the 7 year reporting timeline. It took a LOT of work, and months, to finally get it removed. When I finally did, I got 53 points. In my experience, those that update monthly do somehow cause more weight than those that don't. Other collections I had removed didn't give me nearly those points.

Guiness56, would be awesome for people if you found out it was illegal.

[Anonymous]

To the best of my knowledge. once a collection (3rd party) is paid and closed they cannot.  I am trying to find that written somewhere.  I have found something that says paid and closed accounts can be reported for no more than  3 months but it did not say specifically collections.

Haviing something IIB and still reporting lates is a big no no and could lead to federal sanctions.

[RobertEG]

Was their "update" simply a re-reporting of the same accurate information, or was it the reporting of some actual change in information?

[Anonymous]

It's just re-reporting the same accurate info. Despite clearing a ton of collections, and adding positive tradelines, the score isn't budging and I think it is because these 2 collections update monthly.

[RobertEG]

Then it is proper.

Credit scoring issues are separate.  Some observe that such "updates" by a debt collector affect score, while others state that it does not.

That is a FICO issue, not a credit reporting issue.

[Anonymous]

I never doubted the legality of it, just wondering the affect it has on credit score. It falls off in 12 months, but they refuse to do a PIF for pfd. But we've now moved our time table up for a home loan and need one at the end of the year! Just not sure what the best way to go is. I need points!

[Booner72]

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@Anonymous wrote:

To the best of my knowledge. once a collection (3rd party) is paid and closed they cannot.  I am trying to find that written somewhere.  I have found something that says paid and closed accounts can be reported for no more than  3 months but it did not say specifically collections.

Haviing something IIB and still reporting lates is a big no no and could lead to federal sanctions.

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I wish I would have known this then.  I found this forum too late in that I had already paid off collections w/o getting a delete, etc.  And then I was in the middle of the mortgage process so I couldn't really risk messing with accounts because of possibilities of dispute comments.  Almost 2 years later and the only things left are the 2005 BK and 2 90 day lates from Sallie Mae that they won't remove because they are accurate.  Trust me, they will not GW or anything.

[RobertEG]

A CRA statement that furnishers should discontinue reporting after 3 months on a paid, closed account is apparently a way of saying that there is nothing substantive  to update, so continued reporting of the same-ole-same is redundant, and takes up time and database.

That is not the same as saing they must delete prior reporting.