What, specifically, is the collection showing when it updates?
Any reporting made after the debt was paid should show the collection as closed, with a paid status, and $0 amount remaining under collection.
There is no absolute bar against updated reporting. In fact, updates are REQUIRED if any correction is deemed necessary.
REgular updates are only stated,under CRA policy, to cease if they do not correct or update actual information.
Regardless, if update reporting is made that correctly shows the status as paid, closed, $0 balance, that update does not extend the period of reported delinquency,and thus should not impact scoring.
However, as is apparently the case in the posted scenario, if the reporting incorrectly shows that the collection is still open and unpaid, that extends the period of continued delinquency since date of initial delinquency, and thus impact scoring.
A dispute should thus specifically contest the accuracy of any update that incorretly reports the collection to still be open with any unpaid (delinquent) balance. If that is the specific assertion in the dispute and the debt collector verifies back to the CRA, then the consumer can bring civil action under FCRA 623(c) on the basis of an unresonable investigation and verification.
Was that the specific inaccuracy that was provided as the basis for your prior dispute?
That will get the matter before a court, with the outcome being a binding determination of wether their verification of your dispute was reasonalbe. If their verification also is shown to have been done either with actual knowledge of its inaccuracy or due to negligence, the consumer can also recover actual or punitive damages under FCRA 616/617.
