Settled Account Shows Up Twice, One With the Original Creditor and One with Settled Collector

[Haluk]

I had a Capital One account that I settled wiht Midland Credit Management and I have a letter from Midland that my account was settled in full.

On my credit report it shows up as one Tradeline with Capital One and One Tradeline with Midland for the same account. Capital One shows up as Status "Closed, Written Off" and Midland Shows up as Paid Closed.

Is this normal? Isn't it supposed to be a one negative item instead of 2?

thanks,

Haluk

[llecs]

It's normal for them to report that way. Both the OC and the CA can report. Send a GW to both.

[Haluk]

Ok. thanks I will.

How long does the settled collection hurts your score?

Once I was told that if you pay an old collection, initially it will hurt your score more than if you don't pay it b/c you bring tha account to current which makes no sense to me. Later on the effect will become less but I don't know how long it will negatively effect my score.

Haluk

[llecs]

It can hurt for as long as it reports as a negative, which is 7-7.5 years from DOFD of the debt.

In some cases (and certainly not all) if you pay an old charge-off that hadn't updated in months or even years, paying it or settling it will cause it to update with the revised balance and that updated report date can harm your score in some situations.

Like with all baddies, the damage will fade over time and completely disappear when removed.