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Marty Boi

Credit Alert - So An So Flagged Your Account As Collections

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Can someone please tell me what it means when your account has been flagged as collections? I am asking, because said account has been in Accounts on my credit report for years, and I've been making monthly payments on it for years. And now I get an alert saying that said account has been flagged as collection. Is it moving from Accounts to Collections, or will said be in both Accounts and Collections? Help!

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Hi Harry....

It is arrears owed to the State of Michigan for back child support. My children are all in their late 20's, but owe the State of Michigan because when my children were young their mother had received State Support Benefits. I had fallen way behind and accumulated a lot of arrears. In the ball park of $29,000.00. I've been paying on this account since 2009, haven't missed a payment since. I reduced the amount of arrears by a large number. And last month, I paid off 2/3 of the remaining debt to $6,000.00. Now all the sudden, this account that has been in Accounts for years is now flagged as collections. I don't understand. The account is closed, but it still has a balance that I'm still paying on. And it's not a Charge Off, nor has it been sold to a collection agency. I notice that it is still only in Accounts and not in Collections. But I got the alert on Saturday, so it might change on Monday.

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Is the account categorized as either "family support" or "child support"?  If so, it doesn't matter for your credit score if they list it as a "collection account" because family support accounts are not factored into FICO.

I had the same thing going on for several years. DES listed the account as a collection because I also fell behind.  Even though I was making regular monthly payments (payroll deduction), I was about 2 years behind schedule on my payment plan so technically I was in arrears.  If you have gotten completely caught up to where you should be, you can dispute the "collection" status and hopefully they will unset the collection flag.  If you are still in arrears, I wouldn't hold out any hope of the collection status changing until you get completely caught up.

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