I got an interesting question from a consumer in 2014 regarding an unpaid payday loan. The consumer had taken out a payday loan but unfortunately lost their job and did not have the money in their bank account when it was time to repay the loan. This led to fees being added by not only…
Collection agencies are not original creditors and should not be reporting monthly late payments on your credit report, you have no legal account with a debt collector that requires monthly reporting of late payments.
The dreaded move-out date arrives and the one thing on your mind is the security deposit. What happens when you don’t get the security deposit back plus the landlord sends a balance to a collection agency that reports it on your credit files.
The best approach in dealing with a debt collector is to stay calm, stay off the phone and know your rights.
Even though a collection agency cannot report a negative account beyond 7 years, they can still pursue you for an unpaid debt.
Once a collection account lands on your credit reports it can stay for up to 7 years from the date of the original account’s default regardless payment. Paying a collection account does improve credit scores but only under FICO 9 scoring system.
To “dispute a collection account” find an error or inaccuracy which includes dates, amounts, duplicate reporting and much more. Every piece of information in your credit reports must be accurate. An inaccurate or misleading collection account will lower your credit score. Either because of clerical errors or miscommunication, collection accounts are among the most common…
Has re-aging occurred when a collection agency updates credit reports. Probably not. Collection agencies can update the date of last activity, date reported, and open date but the date the account must be removed from credit reports should not change.
If your insurance company pays a medical collection debt that’s on your credit reports, you can have the medical collection accounts removed from your credit reports under the National Consumer Assistance Plan (NCAP) initiative.