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CA Reporting as Open Tradeline


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Simple question: Is it permissable for a CA to report an alleged account as a open tradeline with a past due balance or must it be reported in the "collection agency/negative information" section of a credit report?

If so, is there any case law regarding this?

My understanding is that it has quite an effect on FICO scores as FICO scores are weighted higher with open tradelines than collection accounts

EX: OC is listed as an open tradeline that is charged off with $0 balance. CA is also listed as open tradeline with a balance, however it is late +120days

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  • 2 weeks later...

Umm... I don't see too much wrong with all that. While the classification of "open account" seems misleading, it is also then clarified with the 'collections' in the account status. To the CA/JDB the account is 'open' on their books. They would likely argue that the 120 days late reflects the 120 days+ late from the OC, which is listed as charge-off.

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They would likely argue that the 120 days late reflects the 120 days+ late from the OC, which is listed as charge-off.

There cannot be a late balance with the OC due to chargeoff. Chargeoff means the account has been paid in some fashion or another by the OC internally

From another thread:

What are you going to dispute ?? The JDB/CA has the collection and its an OPEN account to them, so it is NOT inaccurate. The ORIGINAL account should be closed, but the COLLECTION isn't - not unless you pay them.

Listing an account as open is a violation of FDCPA/FCRA...it may be "open" to the CA, as they're collecting on it...but it's not an open account. An open account means an account that is open to new consumer charges. There is no way a defaulted debt/collection account can be "open" under any commercially reasonable meaning of the term.

What is everyones take on this?

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