tmac01 Posted July 16, 2008 Report Share Posted July 16, 2008 I have a Medical collection that I have posted about and I am not getting any help from the OC or CA so I'm gonna DV the CA but I was looking and under terms it states : 1 month, WTH Most show Revolving, the months to pay off or unknown but 1 month ? I have just never seen this and I was wondering what it meant.....Thanks Link to comment Share on other sites More sharing options...
Cynic Posted July 16, 2008 Report Share Posted July 16, 2008 Tbag what do you think it means? It's not a debt thats paid in multiple monthly installments. 1 Link to comment Share on other sites More sharing options...
cjtx Posted July 16, 2008 Report Share Posted July 16, 2008 According to CDIA, a CA, factoring company or JDB must report the portfolio type as: open (as opposed to revolving or installment), account type: collection or debt buyer, terms duration: 1 (which indicates there is only 1 payment expected), but terms frequency must be left blank (because the only expectation is that eventually they will be able to collect it but there is no deadline).To add to the confusion, each CRA has different names for each of the fields above and the reporting software used by DFs may call things different too.Some CAs and JDBs fake a collection by claiming it is an installment account with 1 month frequency. At the same time, they hurt your credit more because it shows like an active account and they usually update your balance every month. Experian even allows them to report payment history (which is also supposed to be left blank according to CDIA) so you end up with a whole bunch of late payments. If they reported it as a collection it would hurt your credit at the very beginning, but as it gets older it loses effect. A recent derog has a higher negative impact on your score. Link to comment Share on other sites More sharing options...
tmac01 Posted July 16, 2008 Author Report Share Posted July 16, 2008 According to CDIA, a CA, factoring company or JDB must report the portfolio type as: open (as opposed to revolving or installment), account type: collection or debt buyer, terms duration: 1 (which indicates there is only 1 payment expected), but terms frequency must be left blank (because the only expectation is that eventually they will be able to collect it but there is no deadline).To add to the confusion, each CRA has different names for each of the fields above and the reporting software used by DFs may call things different too.Some CAs and JDBs fake a collection by claiming it is an installment account with 1 month frequency. At the same time, they hurt your credit more because it shows like an active account and they usually update your balance every month. Experian even allows them to report payment history (which is also supposed to be left blank according to CDIA) so you end up with a whole bunch of late payments. If they reported it as a collection it would hurt your credit at the very beginning, but as it gets older it loses effect. A recent derog has a higher negative impact on your score.Thanks CJTX I appreciate your professional response !! Link to comment Share on other sites More sharing options...
tmac01 Posted July 16, 2008 Author Report Share Posted July 16, 2008 Tbag what do you think it means? It's not a debt thats paid in multiple monthly installments.Tbag ? Thats very mature Cynic !! If I knew what it meant I wouldn't have asked the question !!!! Link to comment Share on other sites More sharing options...
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