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Question By
ogrexd45

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what is the difference between removed collections and closed collections
in the collections section, it says i have a closed collection and one that is removed but it happens to be todays date so its throwing me off. is there a difference between the two? if so, what?

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Closed vs Removed Collections

Helpful to 107 out of 143 people

IS THERE A DIFFERENCE --- YES --- & THE ONLY ONE YOU WANT IS REMOVED COLLECTIONS.

First what is a collection? A collection is bill that has not been paid. Take a credit card....they have people who work for the credit card company & they try to "collect" the past due amount + the current month to bring your credit card up to date.  IF you can't pay it, answer the phone & talk to them, most companies will work with you & you keep the account. Remember ---> You get charged the regular monthly amount + interest + $35 past due fee - PER MONTH! So, that small interest you was paying now is up to 29% to 35% on the unpaid balance! IF that credit card company can not get your account collected, they will sell it to a 3rd party collection company & write it off as a bad debt. Now, you have a closed account showing on your credit report which is a negative!!! This tells banks & creditors you can't or won't pay your bill(s).

An account showing Closed means closed by creditor or closed by collection company. The account will show up on your credit report twice. Say Chase is your creditor & you could not pay it & they sold it. It would show on your credit report Chase, Account Closed by Creditor, date closed. Sometimes it will show what company the account was sold to. The problem is this is a NEGATIVE mark on your credit report. Get a few of these & you will have issues getting credit. 

An account showing Removed is normally an old account that was written off years ago. It would be most likely a credit card. NOW, here is where you FIGHT BACK IN WRITING. If you have an old account on your credit report that is over 5 years old, you need to dispute it. Depending on your state, it may have met the SOL (Statues of Limitations) in your state. Some states are 3 years! The point is these HAVE TO BE REMOVED  FROM YOUR CREDIT REPORT IN FULL! In short, that account is fully deleted from your credit report! IF it isn't you can sue that company according to several Federal Laws. If you dispute a bill with a collection company there are several laws they must follow. So, if you are in the right, it needs to be removed. Then it is deleted & there is a section on a report that says "Removed". 

Reply by
cplrolfes

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Helpful to 17 out of 28 people

So this five year date that you talked about near the end.  Is it the date that shows up in the date report removed section?  And if so, how long does that stay there?

Reply by
litlefrnchgirl

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Helpful to 9 out of 15 people

I filed a dispute with this same company due to the (SOL). Because they didn't respond within the time alloted, Equifax honored my disput and removed this account from my credit report. Last Friday I was served by the same company for wasge garnishment. What can I do to get this stopped?

Reply by
Deyjae

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Helpful to 1 out of 3 people

If I have an closed UNPAID account on my report that has been over 5 years?

Reply by
Eduardo92Garcia

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Sorry but i do i dispute items on my credit report

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Most Helpful Response

Helpful to 8 out of 9 people

I have a question! If I have a closed collection account removed from my report then am I still liable to pay? TransUnion says no, while the collection agency says yes. Where do I find the correct answer here!

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As I understand it,

Helpful to 33 out of 46 people

Closed Collections are accounts that were sent to collections but have since been paid off or written off and are no longer collectable.  They will will continue to report for the full 7.5 years form the date of last contact. Generally the date of the last payment before the account was sent to collections. As these age, they have less effect on your score.  FICO ignores these where the original balance was less than $100.  Vantage 3.0 ignores all closed collections and those that were the original balance was less than $250.  Scoring models all use differant guidelines.  

A removed account still shows up on your report and they are reporting that information has been removed. It should become neutral since it should have no derogitory information in it. 

Good Luck

Reply by
PrairieBilton

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Helpful to 33 out of 46 people

Is it possible that a collections account will always appear on your credit if i waited the 7.5 year period without paying it off? Or will it never show up again once its removed? I just dont want something to always be on my credit for the rest of my life!

Reply by
gerirose72

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Helpful to 7 out of 12 people

Enter Your ReplyThank u sooooooo much been trying for 2 hours and have gotten no where with a direct answer very simple answer again you rock my man thank-u

Reply by
aztekk296

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Helpful to 2 out of 2 people

a removed account won't show up on credit report 

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Reporting time

Helpful to 23 out of 32 people

In Regards to PrairieBilton,

If no action is taken on the debt, no efforts to repay it etc... then it will still be removed from your credit report at the 7.5 years time.  Paying off the collection still leaves it on your report (until 7.5 years when it will be removed), and while it is better than an unpaid, can make little to no difference.  I had an unpaid chargeoff from 6 years ago that I didn't know about.  Paid it off and barely caused a blip in my credit score.  The older the collection the less impact.  In a case where it's already years old and your not currently applying for credit... letting it go away on its own isn't necessarily a bad idea (not a great one either).

One method to look at getting it removed prior to the 7.5 years would be to dispute the charge.  Get the free copy of your credit report your entitled to,  I don't recommend falling into the marketing gimick subscription for the number score unless you need it.  Find any inaccurate information on the collection you can and use that to dispute the debt.  In the case of my old paid charge off i disputed it even though it all looked accurate and so far one credit agency appears to have removed it.

There are multiple comment threads and articles on the site about disputing.

Reply by
PrairieBilton

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Helpful to 4 out of 8 people

Thank you so much! That makes perfect sence, Im not sure why i didnt think about that lol. Thanks again Joshias02!!!!!!

I very much appreciate it!

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5 People Helped

Collections Removed

Helpful to 3 out of 3 people

Hello,

Could you tell me why the accounts that have been removed and show under my removal tab would still show up under open accounts tab?  This would be on my Transunion report. ;/  I appreciate your help. :)

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Old Collection

Helpful to 3 out of 3 people

I have a question about and old collection account.Should i dispute it?It is a hospital bill.Does disputes causes the old bills to be updated?

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2 People Helped

1 year and Removed Collections

Helpful to 2 out of 2 people

I have a hospital bill from last year for a substantial amount that was sent to collections but I am unable to find any of the bills to pay it off. My credit score has dropped significantly since this was sent to collections. Well now it says it is a "removed collections". I havent payed it and its only been a year. Why was it removed? and should I still go through the process of trying to pay it off?

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Removed accounts

Helpful to 5 out of 8 people

I have 4 accounts that have been removed from Equifax, but are still showing on t ransunion. Should they be removed as well? OR how do I go about getting them removed from Transunion. Thank you

Reply by
adammusic

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0 People Helped

Same here. Transunion is like a month or two behind.

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0 People Helped

opening an account

hi i have several collection accounts that have been closed, my question is would i be able to open a checkings account with a bank?

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0 People Helped

I have a question

If Sprint collections account is removed off the credit report, how long before you can apply to get a new account with Sprint again?

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