Utility Collection Account

Anonymous · ‎08-30-2018

I have a 5 year old collection account from national grid. What is reported on my credit report is the $2100 electric account which is being managed by TSI collection agency. I was also informed that the gas account on file is also $3,150, but this is not on my credit report so I am focusing on the $2100 electric balance. TSI said national grid is willing to settle for $1700. If I pay the $1700, is it likely they will start reporting the $3150 balance as well. I think they may have in the past but I disputed it and it disappeared, but I’m not entirely sure. TSI said they don’t own the debt and my online national grid account says written off. This is the last collection account on my report. Should I pay it off or wait for it to fall off in May of 2020?

gdale6 · ‎08-30-2018

These are 2 different accounts one has nothing to do with the other and yes they could report the other at any time of its not reached the end of CRTP. I would agree to pay it they will give you the deletion in exchange for payment. I would also make sure this past states SOL and they cannot use the courts to get a successful judgment if you decide not to make a deal at this point. You didnt make clear who is reporting but whomever is they are the ones you want to deal with. Welcome aboard

RobertEG · ‎08-30-2018

The fact that it was charged-off by the creditor is not relevant to the continued reporting of a balance.

If the creditor has sold the debt to the debt collector, then the creditor is required to have promptly updated their reporting to $0 debt balance owed to them, and the new owner can then report the full balance that was owed.

However, if the debt collector does not own the debt (i.e., only has assigned collection authority, and the creditor still owns the debt), both can report a balance to the CRA, with the OC reporting indicating the debt balance, and the debt collector reporting indicating the amount they are authorized to collect. Thus, either or both can legitimately report to the CRA.

Regardless, if you obtain a settlement agreement for any amount, and it is clearly stated that it will discharge the entire debt, then no, they cannot continue to report any debt balance, as you have a contractural agreement that the debt is discharged (i.e., no remaining debt).

Be sure that your settlement agreement clearly specifies that the settlement discharges all debt obligation and you will be OK.

You can also, as part of a settlement agreement with the debt collector, include the additional agreement that they delete their collection entirely. A PFD agreement in addition to a settlement for less is rare, but you never know.......

Regardless of whether paid or not, the collection will become excluded no later than 7 years plus 180 days from the DOFD.

You can choose to wait for credit report exclusion, thus removing the collection regardless of whether you pay, but you will still have an unpaid, delinquent debt. A PFD will both discharge the debt and remove it now from your credit report.

It is not a simply one or the other, as waiting for credit report exclusion does not discharge the debt.......

Anonymous · ‎08-30-2018

Thank you for responding! This account is being reported to all three credit bureaus. My scores right now are TransUnion 606, Equifax 599, and Experian 642. I am hoping to get my credit score into the high 600s by February 2019. Over the last two weeks, I paid off all my credit cards and collection accounts except this National Grid one. I am a little salty about this bill because I lived in Rhode Island and the person we rented from had outdated HVAC system and our bill was through the roof. But that’s neither here nor there. I am now in a financial position to clear everything up and I am doing so. I opened a secured credit card 1.5 years ago with USAA and was able to make additional deposits into a CD to increase credit limit over time to $1500 as this card will never graduate. I just opened a $5500 credit card this week to increase my overall credit limit so now I have a total credit limit of $11000 with less than $150 balance in total. I know clearing old debts won’t necessarily increase my credit score but TSI has been reporting this monthly. Will paying it off help my credit score if I get it deleted?

I work for the federal government and plan on getting a secret security clearance within the next year so I want to have all this debt taken care of. I plan on using a portion of my savings to clear this debt.

Any advice would be great. Thank you!

Anonymous · ‎08-30-2018

If the debt is reporting monthly as delinquent, paying it off should increase your score. It will no longer report as delinquent and will begin to age. It would be best if you could get it removed completely, though.

gdale6 · ‎08-31-2018

It is possible your Fico will increase with the deletion if you have multi CAs and if its your only one then yes it should.

Anonymous · ‎08-31-2018

I ended up just paying the settlement of $1700. TSI Said they don’t do deletions—they just update credit reports and I would have to contact the original creditor for deletion. I live overseas so calling these agencies starting at 10pm puts me at a disadvantage because I just want to be done with it because I’m tired, lol. I also opened an additional Amex credit card of $5500, so I am hopeful that by FEB 2019 I’ll have some score improvement. Thank you all for the advice!

gdale6 · ‎08-31-2018

@Anonymous wrote:
I ended up just paying the settlement of $1700. TSI Said they don’t do deletions—they just update credit reports and I would have to contact the original creditor for deletion. I live overseas so calling these agencies starting at 10pm puts me at a disadvantage because I just want to be done with it because I’m tired, lol. I also opened an additional Amex credit card of $5500, so I am hopeful that by FEB 2019 I’ll have some score improvement. Thank you all for the advice!

Good that its over. That about contacting the OC is BS they dont have control over the CAs reporting. Now begin a GW letter campaign asking for its removal.

Anonymous · ‎08-31-2018

I figure that after I paid it off and updated my contact information that the $3100 for my gas bill will likely show up on my CR soon. At the end of the day, it is my debt and my responsibility so I will just pay it if it comes to that. I will try and contact national grid to have the accounts deleted once my report updates. Am I hopeful? No. But I feel happy I was able to pay my debts and taking responsibility for my credit score as this will be important for a secret security clearance. My husband and I are also hoping to purchase a home in the next two to three years, so that is a goal I am focusing on as well, although I have a lot of student debt also. However, those accounts are current with good payment history. As I focus on my career, I am confident I’ll be able to make my payments and apply for the loan forgiveness program for public service.