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I received a debt collection notice for an unpaid electricity bill for an account that I closed. How badly much will it affect my credit score How long will it take for the negative effect to go away?
Wiki User
∙ 15y ago
How badly... is a closely guarded secret, but it will hurt you. How long is a minimum of seven years.
You should phone the electric company people and try to explain that the account is closed or just pay the bill, the worst thing you can do it ignore the problem. I don't know how much something like that would hurt a credit score, but it could be big and won't just go away, don't risk a good credit score for something as simple as an electric bill
Wiki User
∙ 15y ago
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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
How does settling a charged off account affect your credit?
It shows as a paid collection. Still a negative thing but shows you did settle account.
What is an open collection account?
A collection account that has not been paid off.
Why original creditors sale accounts to a collection agency?
Original creditors sale their accounts to collection agencies when the account has been past due and they have not effectively collected. At that time, the original creditor will charge off the balance from their accounts receivable and turn the account over to a collection agency. When the collection agency collects the debt, a portion of the amount received is paid the the collection agency and the remainder is returned to the original creditor as profit.
Collection of a 600 accounts receivable?
If you're speaking $600 money received for an account receivable, the entry is Debit to Cash for $600 Credit to the appropriate AR for $600
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
How does settling a charged off account affect your credit?
It shows as a paid collection. Still a negative thing but shows you did settle account.
How does a derogotory tradeline become a collection account and what is the difference?
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.
What is an open collection account?
A collection account that has not been paid off.
Is electricity a liability or asset?
Electricity expense is an expense account while accrued electricity payable is a liability account
Why original creditors sale accounts to a collection agency?
Original creditors sale their accounts to collection agencies when the account has been past due and they have not effectively collected. At that time, the original creditor will charge off the balance from their accounts receivable and turn the account over to a collection agency. When the collection agency collects the debt, a portion of the amount received is paid the the collection agency and the remainder is returned to the original creditor as profit.
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.
Is it legal for a lender to report a negative paid account as delinquent?
No. A creditor can report a paid derogatory account as delinquent PRIOR to being paid. But if you paid it off, the correct status is "paid" (collection or charge off).
I paid a collection account off in full and it is showing refinanced or renewed. Is this good?
No it is not good. Any negative entry on your credit reports is a bad thing and can affect your score.
Collection of a 600 accounts receivable?
If you're speaking $600 money received for an account receivable, the entry is Debit to Cash for $600 Credit to the appropriate AR for $600
Can a creditor and the collection agency who purchases your account from the creditor both report the same debt in separate instances to a CRA?
Yes, they can and it's customary for them to. The original account should have all the history, including late payments you made and the status (collection or charge off), the DLA, and date the account was opened. It should not be showing a balance due once sold or assigned to a collection agency. It may have a statement about being sold or transferred, but not always. The CA account should have the date they received, or were assigned, the account and the current balance (often with interest added in). The DLA should not have changed.
If you received a collection notice and the company stated they reported your account to the credit bureau on Monday if you pay it this week since it is the same week will your score remain the same?
If they reported your account to the credit bureau, your score will decrease whether you paid it or not.
