Debt Collector Credit Reporting and Metro2 - Midland Portfolio Jefferson

[Onlinecreditnewbie2]

As rquested by the mderator, consolidating my two postings. 

Please scroll down to Message that says Part 1. 

[FireMedic1]

To narrow it down. Looks like Portfolio has a collection you owe on that they own. With them if you settle or PIF. They will delete it off your reports like it never existed. All the other questions you posted. I have no clue.

[Onlinecreditnewbie2]

Please Scroll down to Part 1 of this message. 

Consolidating the posting, as requested. 

[Onlinecreditnewbie2]

Hope I dont get banned for trying to educate consumers - and this is Part 1.

Can this community start the discussion of what a Consumer Report should look like and for all 3 CRA's whene there is a negative tradeline from a Debt Collector?

Why not share what a Consumer report is supposed to look like? I challenge anyone who sees this to google/search for a Collection account example/sample at all 3 CRA's. 

It doesnt really exists - snipets do however, I pledge to connect them - if, an adverse item, and  then what is expected. 

************I am never going to advocate that one not to pay a bill, however - lets help cpnsumers ensure that their parking ticket is not a DUI. (my mantra). 

myFICO, and who ever sees this lets help consumers not get Parking Tickets reported as DUI's. I was blocked before - but, if you see this share it wide, all links are public and from the source- once you see it you will never unsee it.

Did you know, there is a legal definition for Debt Collectors vs. Creditors/Credit Grantors?

• google - ftc debt collector vs credit grantor (should the link not be visible)

• Fair Debt Collection Practices Act | Federal Trade Commission

  is the first result if you google 
• Scroll down to Section 803 - definitions 

https://www.ftc.gov/legal-library/browse/rules/fair-debt-collection-practices-act-text

Section 803 - FTC, Defintions 

Then -----------------------------------------

Did you know, that Debt Collectors - when the follow the rules, can only send like 18 feilds to a Credit Reporting Agency? Its true ...they know it and so shall you. They subvert the mandates - and instead sent a whole tradeline - anchored to your reports to cause the biggest impact they can, and whats worse - once its there its like nearly impossible to fix. 

You can only ever go to collections once, this doesnt happen every month - but ------------------the Debt Collectors report it as if it does. Sadly - it looks reasonable - but. lets share what the field - Metro2 says they should or should not do. 

Midland, Portfolio, Jefferson, Asset Management, etc - all of the national orgs of debt collections .......Why are they reporting as a Credit Grantor/Creditor? 

Everyone has been told that a/an Collection Account can natrually age off and the impact is diminished in time. But -their reporting of these  tradelines - make this almost impossible?

Did you all know - that every CRA has a Section/Segment for Collections? Think of this as a room in the house - with COLLECTIONS being the basement. 

Did you also know - that almost every Major non medical (although some medical debt collectors try this) show up as an account?

Whats an account you say?

Here is an explination from Experian 

https://www.experian.com/blogs/ask-experian/credit-education/report-basics/understanding-your-experi...

Accounts

Accounts in a credit report include revolving credit accounts and installment loans. This information is reported to the credit bureaus by your creditors. Accounts in good standing reflect your creditors' reports that you have satisfactorily met the terms of your agreements with them and all payments have been made on time. Lenders are not required to report account information to the credit reporting companies. Some lenders may choose to report to only one or two of the three major credit reporting companies (Experian, TransUnion and Equifax), and some choose not to report to any. Therefore, it is possible to have an account that does not appear on your credit report. This section may also include up to two years of your monthly balances on an account if it has been reported by your creditor. Here are some examples:

Why - is Midland, Portfolio, AM, Jefferson etc - in this section of a Concumer Report?

Did you know - that there is a Section for Debt Collectors that the CRA rountinely does not check, qualify, audit, fix - Debt Collectors to go in? This is for all of the CRA's?

Collections

When an account becomes seriously past due, the creditor may decide to turn the account over to an internal collection department or sell the debt to a collection agency. Once an account is sold to a collection agency, the collection account can then be reported as a separate account on your credit report. Collection accounts have a significant negative impact on your credit scores. Here's how collection accounts will appear on your report:

Part 2 coming up...........................

[lns1976]

I'm dealing with collections myself, and none are reported as "Accounts" on any CRA.  They are all reported correctly as collections.  

Whatever instance transpired that caused you to have to deal with this isn't the normal situation I've experienced.  Collections have always reported as collections with reference to the original origination of the debt (whether credit card, utility company, etc...).

I've even had the original tradeline, as have others, continue to be listed as a "Charged Off" account while a separate collection account appears referencing the original tradeline.

[FireMedic1]

So what is it your not happy about thats on your credit report? We can help you on what to do. It all goes by the FCRA laws. If theres a violation. You can file a complaint. The CA's you listed delete after settlement or PIF. So thats a good thing.

[Onlinecreditnewbie2]

Part 2 - Metro2 - File Spec and What should be sent to a CRA 

I am not an attorney or financial person, I also don't advocate for you or anyone not - to pay a bill. 

I just love the data.

*****Debt Collectors, please see previous posting with link to the FTC's definition. 

This posting is specific to what a Debt Collector, is required to send - and, then what it is directed not to send. 

All - CRA's require their consumer files to be sent in a Format called Metro2. This file format is standard, and contains the rules of what to collect and then publish about their consumers. 

TransUnion 

• Format Requirements -  Metro 2® Format

         The Metro 2® format is the industry standard file format for reporting consumer credit information.

• https://www.transunion.com/data-reporting/getting-started

Equifax 

• Data providers must send data electronically in Metro 2® format-requires Metro2 Sofware for formatting. For more information on the Metro 2® format, please visit www.cdianline.org.
• https://www.equifax.com/business/data-furnishers/consumer/

Experian

• Experian can only accept data in Metro 2® format*. Data providers must send data electronically in Metro 2® format–requires Metro2 Software for formatting. (For more information on the Metro 2® format, please visit www.cdiaonline.org.)

• https://www.experian.com/consumer-information/reporting-to-credit-agencies

There is a a set of instructions in the file specification, and For Credit Grantor's and Debt Collectors. for those wiling to learn more, Google Metro2 Debt Collector to see more results of what is expected, software details etc. 

Now - what's in the File, and for that matter - why does it matter?

If - you are following the rules, it doesn't matter - its simply like your credit card statement collecting charges for you. The account has valid charges - you see them, its yours. Right?

Imagine however, if a vendor/store decided to add some fields to your file, and send it outside of the rules - and now that 10 charge is 100, and its reporting itselfevery month, and for 7 years. Not right ??

With Credit reports - there is also an natrual issue for consumers, who taught you how to read your report?  What is it supposed to look like? 

***Bonus item, google all three CRA's and try to find what a collection account should look like and directly from them. 

Additionally - when you get the reports - it is designed to look right. But is it? 

Using the Metro rules - lets look at what they should send, and when they do - what it should look like. 

See the screen shot below - of the fields in Metroo2 that must be sent about the consumer. The file's header/footer records are not in scope for customer data specifically. 

The fields are Highlighted in Pink. (no comments)

***Google Metro2 Debt Collector Credit Reporting to verify what you see as reporting requirements. 

If, this is what is sent - then it should look like this and at Equifax, in this example. 

• It resides in the collection section of this report
• You can map (take row 1 from above and point to it in the screen shot) each field/row 1, by 1

Stay Tuned for Part 3 

[Onlinecreditnewbie2]

Part 3

There is also instruction in Metro2 - on what a Debt Collector should then, not send. 

There are no Terms with a debt collector - no payment history, or pay ratings allowed (or any other item above) ,and if you are following the rules. 

So - what happens when they dont follow the rules?

For Experian 

Raw credit report from the CRA itself, printed or annualcreditreport.com, online tools will mask the raw data. 

After the section about you - Column Header is "Accounts" - for "Creditors", remeber the legal definition and then somewhere in this is how FICO is calculated. 

Then - look at the tradeline. Remeber what is not supposed to be there???

Why are they reporting TERMS, Payment Rating, and Payment history ?

Equifax - Please remember the COLLECTION account  you saw previously, and ask yourself, why Midland, Portfolio etc - dont look like this??

Midland, Portfolio - etc. - when not following the rules - get placed in the OTHER Accounts section of the Report. And - the crazier part of this, and to ensure that credit utilization or your credit summary is not impaced in your view - they are under the CLOSED accounts.

PLEASE READ WHAT EQUIFAX SAYS SHOULD BE HERE - and how scoring would leverage these details. 

Other Accounts

Report Date: Apr 09, 2022

Other accounts are those that are not already identified as revolving, mortgage, or installment accounts such as child support obligations, charge cards, or rental agreements. Click anywhere on an account entry to see more details about that account.

PART 4 FOLLOWING 

[Onlinecreditnewbie2]

I actually get the process. 

However - what I see happening is in fact systematic, and across the files they send. 

It's not just me. 

I woud like OTHER people to understand - what is directed to be in a Consumer Report. 

The directives of Metro2 are explicit - they are rules. Every CRA requires their data to be sent in this manner/format. 

How it should look/act - what elements (data) is expected, etc - is the missing peice of all of this. 

Why not share the knowledge of the Metro2 File Spec, Debt Collector directives specifically from the file?

[Onlinecreditnewbie2]

Part 4 - Equifax 5.x, Other accounts 

Other Accounts

Other accounts are those that are not already identified as revolving, mortgage, or installment accounts such as child support obligations, charge cards, or rental agreements. Click anywhere on an account entry to see more details about that account.

Remember the EQ COLLECTION ACCOUNT 

Other Accounts vs. Collection Accounts 

OTHER - is in Section 5.x, Header of account likely says something like 
"Midland (Closed) - even though, its really not closed 

This is part of the magic of credit reporting, and what they publish to do and not do, and as expected results. 

1. According to the description alone, this Collection Account should not be here - as they are NOT Creditors 
2. Its in "Other" - which is dedicated to Creditors 
3. Then - why would this show (CLOSED)?
4. The Account Number is likely BLANK if a printed report, lthough they are getting better at adding this, and especially in online tools 
5. Pay Attention to the Summary - read what it says for Debt To Credit Ratio, mine says it's 100%?
6. Payment and Rating and History exists - when they are told not to send

******Debt Collectors - cannot report a Debt To Credit Ratio, by inserting itself in "Other" which is dedicated to Creditors, by inserting into the OTHER section of your report, it is creating one and its being used to calculate your scores. 

Remeber the Rules?

Part 5 coming up - Account Types and "Other"