| Author | Message | ||
     Christine Moderator Username: Christine Post Number: 112 Registered: 03-2006 |
A collection reported correctly as COLLECTION assigned (or purchased) a few years ago does very little damage to the scores. The balance and past due amounts reported for a tradeline are often included in the Balance/Limit ratio, the accounts are often rated as CURRENTLY delinquent as of the reporting date or status date (depending on the CRA) and it is rated by numerous FICO score factors. I've seen FICO scores around 700 with 4+ year old collections reported CORRECTLY as such. And I've seen 6+ year old collections reported as tradelines -- the only derog account -- and the scores were in the low 600s or even in the 500s. [5/08 update: the new TU FICO scoring software seem to ignore old tradeline balances] It is very easy to document the impact of the reporting with the FICO score factors and I can certainly provide an affidavit if anyone needs to document damages in excess of statutory damages. More info about affidavits | ||
| Christine Moderator Username: Christine Post Number: 209 Registered: 03-2006 |
After comparing many collections on the Experian and the myFICO reports, it appears that the reporting of collection accounts as INSTALLMENT is causing the reporting as a tradeline. Type: Installment To have collections reported as such, dispute the account type with Experian, it should read COLLECTION. It may well apply to all CRAs, on Equifax I see "open account" a lot, but I haven't confirmed that. And, while it's USUALLY better to have OLD collections reported as collections, you want to think about this carefully. The DATE OPENED will be converted to the DATE ASSIGNED by FICO scores. So you really have to look at all the dates and everything else on your report. A NEW collection (recently assigned or purchased) instead of the tradeline might actually lower your scores. If you're sure you want the reporting as collection rather than installment or revolving, dispute the account TYPE and request reporting as COLLECTION. Of course that's only an issue if they PROPERLY validated the account because they can't legally report at all after your initial dispute with the collector until they validated. Don't shoot yourself in the foot by demanding the reporting as COLLECTION when they shouldn't report at all. |
