Collection Accounts
A collection account is an account sent from a creditor to an outside agency or its own collection agency in order to collect an unpaid debt. After an account is charged off, it usually will go into collections, because they still want to receive the money for the debt. The account will no longer be reported as a charge off, but it will now be reported as a collection account.
Always pay your collection or it could mean no future credit!
It is always better to pay a charge off or collection account rather than to leave it as unpaid. On a credit report there are “paid collections” and “unpaid collections.” When disputing information on your credit report, if you have documentation that you have paid a collection or charge off account, it should be stated on your credit report. Unfortunately, most lenders will reject people for having any type of charge off or collection account on their credit report. But, if the collection account is paid, creditors will see this and it can possibly lead to an increase in your credit score.
Do you have a paid account but it is being reported as a collection account?
Many times accounts are taken care of and paid, but the record is somehow lost or misreported. So what happens next? The account can be reported as unpaid and can go into collections. It could be a utility bill, medical bill, or a similar small balance bill. You have paid this balance but now it is showing on your credit report as a collection and significantly lowering your credit score! Now what? It is your legal right to dispute this inaccurate information. Credit reporting agencies report the information whether it is accurate or not, so it is your job to check your credit report and dispute the misleading information.
How can I dispute/conifrm accuracy of collection accounts on my credit report?
CreditLawGroup.com provides low cost legal representation in disputing inaccurate, incorrect or unverifiable information contained on credit reports from the three major credit bureaus, Equifax®, Experian® and TransUnion® and their affiliates. You can monitor your progress online, as well as speak to your Paralegal whenever needed by phone or email. We have excellent customer service, and are always there to meet your needs!
