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How does a derogotory tradeline become a collection account and what is the difference?
Wiki User
∙ 8y ago
They are two different issues. A derogatory (negative) trade line is a record of a consumer's past and current buying and payment activities. A collection account is generally an account that has been defaulted on. It some cases it refers to the original creditor or the OC collection representative. Or it can be in referance to a third party that has purchased the account.
Wiki User
∙ 8y ago
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Is it worth it to pay off an old credit card debt from 5 years ago or should the 7-year mark just take care of it and are there benefits either way?
This subject is a real catch 22. You may be able to slide out clean with the account just disapearing from your cbr however, if the account has been through multiple collection agencies with out success of collecting the money owed another c.a or attoney's office may purchase the account and place a new tradeline on your credit which will show up as a collection agency with the same balance that the credit card was or place a civil judgment on the public records section on the cbr which is even worse.
Can collection agencies freeze your savings account?
No, collection agencies do not have any right to freeze your savings account. Only banks have the right to freeze your account but depends on the nature of the default.
What do you do if an account was turned over to a collection agency but the original creditor accepted your payment in full?
Contact the original creditor. Provide proof of your payment. They need to retract the account from the collection agency. The account could have been sold to the collection agency or simply assigned to them. For your purposes, it does not matter which situation applies. You paid the original creditor and your credit report needs to reflect this. After they do what they need to do to get the account back; you then dispute the entries with all three credit bureaus. The original account should show as a paid collection and the other collection account should be removed from your credit report entirely.
Do collection agencies usually garnish wages?
Collection agencies are usually retained by the establishment that you owe the defaulted debt to, if the borrower ( person in debt) does not want to work with the collection agency handling their debt, the collection agency will then document the account as a refusal then send the account back to the original lender then they will garnish your wages until the life of the loan is paid off.
What is the difference between person fund vs account fund?
The difference between person fund and account fund is that a person fund is transferred to the recipient in person, while the account fund is transferred to the account of the recipient.
How do you find out when an account on your credit report was closed?
Each entry on your credit report that reports financial activity is called a "tradeline". If an account was closed, charged off or paid off, it will have a statement under the tradeline to that effect. A word to the wise...never close an open tradeline - even if you are not using it. When you close a tradeline your credit score will drop to some degree.
Is it better to have an account removed from your credit report completely or to negotiate for 'Paid As Agreed'?
In the case of a collection account, it is always in your best interest to have the tradeline completely removed from your credit report as opposed to having it show paid. If the account is NOT a collection or P&L, then the opposite may be true. Let's say you have a credit card with 6 late payments being reported to your credit history. You negotiate with your creditor to have all the late payments removed from the tradeline, showing that it has been paid as agreed, never late. This would be better then to have the entire tradeline removed, as the now clean payment history will help to raise your FICO score. Having it removed will not have as positive an effect. You will lose all the credit history associated with the tradeline, as well as (if it is a revolving account), available credit. Not having sufficient credit history can be just as detrimental as having bad credit. Hope this helps!
Can collection agency collect or report if charge off accounts are deleted after 7 yrs?
Attempt to collect: yes they can attempt to collect long after the 7yr tradeline expiration date. Report: no since the very first account default triggers the 7yr deletion timer not when the collection agency receives it from the original creditor.
What is an open collection account?
A collection account that has not been paid off.
How long can a collection agency come after old debt that does not show up on a credit report any longer?
There are very few states that have laws regulating the attempt at collection on old debts like these. However, if you live in New Mexico and very shortly NY they have to inform you that they have no legal recourse and you have to pay it out of the goodness of your heart. Collection Agencies in Mississippi and Wisconsin have to clear the tradeline on the credit bureau as soon as the account is past the Statute of Limitations.
How do you find out the original date that a debt was turned over to collections since often it is the sell date that shows on your report?
THE ORIGINAL DATE SHOULD APPEAR ON THE BOTTOM OF THIS TRADELINE (IN OTHERS WORDS DEBT) IN WHICH IT WAS TURNED OVER TO A COLLECTION AGENCIE. THE MOST IMPORTANT THING THAT YOU SHOULD BE WATCHING OUT FOR IS IF THIS DEBT HAS BEEN SOLD TO ANOTHER COLLECTION AGENCY, AND WHEN WAS IT SOLD! IF IT IS A COLLECTION ACCOUNT THAT IS REPORTING FOR THE YEAR OF "2006" THEN THIS DEBT NEEDS TO BE PAYED (ONLY IF YOU ARE INTERESTED IN PURCHASING A HOME.
What is a Derogatory public record or collection?
== == A Deragatory record is an account that has had a history of late payments. A collection account is an account that was not paid on time or at all, and was closed by the creditor and sold to a collection agency.
Can a collection agency continue to report a collection account to the credit bureau after the account is sold to another collection agency?
No, once a collection agency relinquishes their claim to the account by selling it they must remove all negative trade lines related to that account from your credit reports. Hope this helps ST
Is it worth it to pay off an old credit card debt from 5 years ago or should the 7-year mark just take care of it and are there benefits either way?
This subject is a real catch 22. You may be able to slide out clean with the account just disapearing from your cbr however, if the account has been through multiple collection agencies with out success of collecting the money owed another c.a or attoney's office may purchase the account and place a new tradeline on your credit which will show up as a collection agency with the same balance that the credit card was or place a civil judgment on the public records section on the cbr which is even worse.
Can collection agencies freeze your savings account?
No, collection agencies do not have any right to freeze your savings account. Only banks have the right to freeze your account but depends on the nature of the default.
If a company is no longer operating what will happen if you dispute a charge off that is with a collection agency?
Whether the company is opertaing or not, does not make any difference. Proof of your account is still there.
What is considered an active a collection account?
An active collection account is a debt that a company is attempting to collect. This continues until all avenues are exhausted.
