State Collection Report Tradeline Seems Funny

[Trying]

Hello,

I recently pulled all 3 of my credit reports and have a really weird tradeline from a student debt.

Not to bore, (but to give the whole story in a nutshell), I attended a public university for a semester. I thought Sallie Mae paid the Unv but apparently the school outright rejected it. That was a whole other issue. But the point is that it took so long for the school to tell me that the account was referred to state collections and began intercepting my state tax returns. I applied for a job in December of '06 and, per my employer's request, finally got the state collection thing to agree to an installment plan, (even though they still intercepted 2006's return).

This May, I should finish up paying the collection account entirely. But, what's weird is that on my credit report, the TL is showing as "seriously past due" and has a "CO" in the monthly boxes as opposed to the PP, (for payment plan). But I haven't missed a payment since December of '06.

Is this incorrect and, if so, how should it be reported to improve my score?

Thanks!!!

[Ahntara]

"...account was referred to state collections..."

That means it's a collection account. Whether it SHOULD be or not seems a point of contention from your post. If not, you will have to get that corrected by the OC.

But, for a collection account, the balance is due and payable in full - no good will is generated from making payments. A CA or OC may accept payments at their discretion, but the sum rightfully shows as an unpaid collection until PIF at which time it becomes a paid collection. The balance listed on your CR may, or may not, decrease as payments are credited. Either would be accurate reporting since, once again, the entire amount is due in full upon default.

[Trying]

Thanks Ahntara! I think I got it now.

Actually, that $944 balance was originally like $3,722 or so that I've been paying for exactly a year. So I guess they're decreasing it with each installment - which I'm thinking is kind of a good thing, (at least as opposed to listing the original balance).

As for the account, it was actually a state collection account. The school it should have been paid to doesn't appear on my report - just this account - after it was referred to "collections."

I don't mean to drag this out, but will this appear as an "adverse" account for up to 7 years from the last payment?

Thanks again!

[Ahntara]

It's always best to find answers like this for yourself...Read the FCRA 1681c, Subsection 605, read it again, highlight the important parts, if you need to. That section governs the length of time something may appear on your CR. There is a sticky at the top of this page.