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Weights22

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How should an account that has a status of "collection/charged off" be reported on your report?
I have an account on my report from the original creditor that has a status of "collection/charged off", but the account is still reporting as "OPEN" with a "FULL BALANCE". Something doesn't seem right here to me as the account was sold off as bad debt per the status of being a "collection/charged off" account. I feel that the correct way this should be reported is "CLOSED" with a "$0" balance since it was sold off as bad debt to a collection agency who currently has this account. Am I correct in my thinking that it should be reported as "CLOSED" with a "$0" balance? I have disputed this various times with all 3 bureaus, and also have disputed it directly to the original creditor that it's being reported wrong. Each time my request for having my report corrected was denied. I spoke to two lawyers who both said I was correct in that it should be reported as "CLOSED" with a "$0" balance. Although, they want to charge me a ton of money to get this corrected for me. Does anyone have any idea's what to do in this situation? It's killing my income to debt ratio as the full balance is adding more debt to my name than I really have. All answers are greatly appreciated!

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Write a Validation Letter

Google it for a template and more info.  I would write one for both the original creditor and the collection agency. Address these to the "Collections Manager"   Only one of them has the legal right to collect. Send the letters Return Reciept Requested.  Maintain that paper trail

Write these letters and mail to any one of the Credit Bureaus that is reporting the accounts

You say that you contacted them before, Was it by phone?  My experience says that it is always better to comunicate with them in writing. The people that answer the phones at collection agencies have no athority and even less knowledge.  Always best to write.

Good luck

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The account was sold to a collection agency for pennies on the dollar.  The collection agency now reports it as open and will try to collect on it for as long as your state allows.  Just because the original creditor charged it off does not make the debt go away.  You still owe it because the collection agency bought it with hopes that you will start paying on it!!   WOW, REALLY?  Debts dont just disappear.  Its called STATUTE IF LIMITATIONS.  Google it for your state.

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