Collection accounts
Collection accounts that are wrong, not yours, or already resolved
An inaccurate collection account can be disputed with the credit bureaus and with the collection agency itself. If the debt is not yours, has been paid, is reported more than once, shows the wrong balance, or is older than the reporting period allows, the reporting company must correct or delete it when it cannot verify the information as accurate.
Collections
Collections are the most frequently disputed item for a reason
Debts are sold and resold, and each sale is a chance for a balance, date, or name to be recorded incorrectly.
The collector reporting the account today may have little more than a spreadsheet row to support it, which matters when it is asked to verify.
The short answer
An inaccurate collection account can be disputed with the credit bureaus and with the collection agency itself. If the debt is not yours, has been paid, is reported more than once, shows the wrong balance, or is older than the reporting period allows, the reporting company must correct or delete it when it cannot verify the information as accurate.
The most common collection reporting errors
Collection errors tend to fall into a handful of patterns. Recognizing which pattern applies to your account determines what evidence you need and to whom the dispute should be directed.
- Collection account not mine: the debt belongs to someone with a similar name or was opened through identity theft.
- Paid collection still showing a balance: the account was paid or settled but still reports an amount owed.
- Duplicate collections: the original creditor and one or more collectors all report the same debt with balances.
- Incorrect balance: interest or fees were added that the original agreement did not allow.
- Wrong dates: the date of first delinquency has been changed, extending how long the item will report.
- Outdated collections: the account is past the seven year reporting period measured from the original delinquency.
What evidence helps
For a debt that is not yours, an identity theft report from IdentityTheft.gov and a police report are the strongest documents. For a paid or settled account, the settlement letter and the bank record of payment are essential. For duplicates, the reports themselves are the proof: the same original creditor and amount appearing under two names.
Where the date of first delinquency appears to have moved, records from the original creditor showing when the account first went past due are critical, because that date controls the reporting period under section 1681c of the Fair Credit Reporting Act.
How the dispute is handled
We dispute with each bureau reporting the account and, separately, send a written dispute to the collector. Under the Fair Debt Collection Practices Act, a consumer may also request validation of a debt from a collector, and a collector that reports a debt it knows to be disputed must report it as disputed.
When the bureau responds, we compare the result against the evidence. A deletion or correction closes the matter. A bare verification in the face of clear proof is reviewed under attorney direction, because it may indicate that the reinvestigation required by section 1681i, or the furnisher investigation required by section 1681s-2(b), was not reasonable.
Paying a collection does not always fix the report
Many consumers are surprised that a paid collection can remain on a report for the balance of its reporting period. That is generally lawful when the account is accurately updated to show a zero balance. What is not lawful is continuing to report a balance that has been paid, or reporting the same debt twice. Those are accuracy problems that can be disputed.
Common questions
What do I do if a collection account is not mine?
Pull all three reports, file an identity theft report if fraud is involved, and dispute the account in writing with each bureau and with the collector. Include identifying documents showing the account does not match you.
Can a paid collection still show on my credit report?
It can, as long as it accurately shows a zero balance and is within the reporting period. If it still shows money owed after you paid, that is an error that can be disputed.
Can the same debt appear twice?
The debt may appear as the original account and as a collection, but only one should show a balance owed. Two collectors both reporting balances for the same debt is a duplicate that should be corrected.
How long can a collection stay on my report?
Generally seven years from the date the original account first became delinquent and was not brought current. A sale of the debt does not restart that clock.
Primary sources referenced on this page
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