Collection Account reporting on different reports differently

[Anonymous]

I have 3 collection accounts.  On TU they are reporting as collection accounts and on EQ they are reporting as open accounts with high balanceof 1094 and 995 with 120 day lates.  My EQ score is higher than my TU score.  How do the scoring models percieve collection accounts verses open accounts showing 120 plus lates.

[Jazzzy]

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@Anonymous wrote:
I have 3 collection accounts.  On TU they are reporting as collection accounts and on EQ they are reporting as open accounts with high balanceof 1094 and 995 with 120 day lates.  My EQ score is higher than my TU score.  How do the scoring models percieve collection accounts verses open accounts showing 120 plus lates.

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Who is reporting them?

This sounds as if it could be the difference between a CA reporting and a factoring company reporting.

[RobertEG]

The best way I can describe it is that all "accounts" are not the same.

You first have an account directly with the OC as a result of credit terms you legally agreed to in writing.

However, you DONT have an "account" with a CA.  CA "accounts" are merely between the CA and the CRA to which they report them.  As such, CAs cannot report 30/60/90/120+ delinquencies.  Only an OC can do that on your legal account with them.  

When a CA "opens" an account with the CRA, they can report the date opened, and can report subsequent monthly status as still open, paid in part, paid in full, or deleted, and activity with you.  There are no CA reporting codes for specific 60/90/120+ delinquencies, for you dont have an account with them!  And a CA does not change, update, or enter any data into the OC account portion of your CR.  They are stored in entirely different fields of your credit file.

FICO scores OC and CA accounts separately.

When you see terms such as "open," it applies only to the type of "account" being reported upon.

Message Edited by RobertEG on 09-06-2009 07:20 PM

[ScoreBooster]

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@RobertEG wrote:

The best way I can describe it is that all "accounts" are not the same.

You first have an account directly with the OC as a result of credit terms you legally agreed to in writing.

However, you DONT have an "account" with a CA.  CA "accounts" are merely between the CA and the CRA to which they report them.  As such, CAs cannot report 30/60/90/120+ delinquencies.  Only an OC can do that on your legal account with them.  

When a CA "opens" an account with the CRA, they can report the date opened, and can report subsequent monthly status as still open, paid in part, paid in full, or deleted, and activity with you.  There are no CA reporting codes for specific 60/90/120+ delinquencies, for you dont have an account with them!  And a CA does not change, update, or enter any data into the OC account portion of your CR.  They are stored in entirely different fields of your credit file.

FICO scores OC and CA accounts separately.

When you see terms such as "open," it applies only to the type of "account" being reported upon.

Message Edited by RobertEG on 09-06-2009 07:20 PM

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RobertEG,

That's exactly how it's supposed to be - but in reality, many companies - such as LVNV - simply don't follow that rule. On Equifax, I have 5 CA-accounts reporting. If I click on the tab "collections" on myfico, it says "You don't have any collections"....now go figure.

On TU, the 3 accounts from LVNV are still not reported as CA-accounts, but the rest is. That makes me wonder how a CA reports the identical account differently to the CRAs.

[AndySoCal]

On The Equifax credit report none of the collection agenciy accounts show as collection  as the status of the account.. Is my understanding correct?

[RobertEG]

When a CA reports a collection to your CR, it goes into a totally separate field of your CR. They cannot report as an original creditor. Not possiblle.

The main factor is the account type, OC or CA, not account status.  A collection agency must report it to the CRA as account type 48 (collection), Account status only refers to the status of their collection account reporting, not to the OC account.

Message Edited by RobertEG on 09-07-2009 05:46 PM