Open collection Accounts listed as closed account with Equifax. What are my options?

[Melvin]

Good morning,

I was sued by a JDB recently and it's got me looking at the collections on my reports way more closely, as I know I should've done before .  There is a company that has listed a collection account with Experian but with Equifax it is listed as "closed account". They have never sent me a written notification but I have  recently found emails in my spam folder from them. I reached out to them via their email platform disputing and requesting verification. I still haven't heard back from them. Equifax has them listed as "other, closed account". They are not listed under "collections".  Am I correct in understanding that closed accounts stay on your record for 10 years, collections for 7? Would it be wise for me to "dispute" that this is a closed account so that it can be listed as collections? The other account listed as "closed" is the one I'm being sued for, so clearly it isn't closed either. I understand that I don't want an open collection account either, but I sure as heck don't want these things lingering 3 yrs longer than they need to be. 

To recap, I have 2 accounts on Equifax report showing as "other accounts/closed".  Both are loans, one is pending in JP court, and the other sent me a collection email as recently as 2 wks ago. The one pending hearing is from June 2020, the other from May 2021. Should I dispute so they can be updated as collections, and fall off after 7 yrs? Or does that do more damage to my credit score than a closed account?

For reference, this is what the Equifax report states: 

Other Accounts

Report Date: Mar 28, 2022

Other accounts are those that are not already identified as revolving, mortgage, or installment accounts such as child support obligations, charge cards, or rental agreements. Click anywhere on an account entry to see more details about that account.

Open Accounts

You currently do not have open accounts of this type.

Closed Accounts

Closed accounts stay on your credit report for up to 10 years since the date of last activity. Negative information such as late payments or collections, generally stay on your Equifax credit report for up to 7 years from the date of first delinquency.

 

 

 

EDIT: I reviewed the entries again, and "Date of Last Activity" is blank, and under comments it says "collection account"

 

Edited April 22, 2022 by Melvin
to add info

[Bulldoger]

Since it will fall off after 7 years regardless where it is filed under,  I would not dispute as a collection damages credit score  more than a closed account. 

[BV80]

7 hours ago, Melvin said:

. I reached out to them via their email platform disputing and requesting verification.

Requesting what kind of verification?

7 hours ago, Melvin said:

Would it be wise for me to "dispute" that this is a closed account so that it can be listed as collections?

Why would you want it to be listed as a collection account?

7 hours ago, Melvin said:

The other account listed as "closed" is the one I'm being sued for, so clearly it isn't closed either.

Obviously it is closed.  “Closed” means the account can no longer be used.

[Melvin]

2 hours ago, Bulldoger said:

Since it will fall off after 7 years regardless where it is filed under,  I would not dispute as a collection damages credit score  more than a closed account. 

Thank you. My confusion came from the Equifax closed account section saying it stays for 10 yrs. I don't want to damage my score any further so I will leave things as is! 

 

2 hours ago, BV80 said:

Requesting what kind of verification?

Why would you want it to be listed as a collection account?

Obviously it is closed.  “Closed” means the account can no longer be used.

I understand a closed account can't be used.  I was trying to say they are "active" collections but incorrectly stated they are "open". Neither of these accounts are open.   When I saw the statement about the record staying up to 10 yrs, I think I panicked and confused myself further. 

Trying to understand this can be pretty overwhelming.  I appreciate the input and the time you have taken to answer my question(s).  Thank you both!

[Bulldoger]

Only accounts that help your score e.g. accounts closed in good standing no lates will stay for 10 years. The bad stuff comes out in 7 years except for BK it stays for 10 yrs. IIRC. 

[BV80]

9 hours ago, Melvin said:

Thank you. My confusion came from the Equifax closed account section saying it stays for 10 yrs. I don't want to damage my score any further so I will leave things as is! 

 

I understand a closed account can't be used.  I was trying to say they are "active" collections but incorrectly stated they are "open". Neither of these accounts are open.   When I saw the statement about the record staying up to 10 yrs, I think I panicked and confused myself further. 

Trying to understand this can be pretty overwhelming.  I appreciate the input and the time you have taken to answer my question(s).  Thank you both!

Does “open” show as type or status?

You also mentioned the date of last activity.  The date of last activity may give you an idea,of when you last used the account (charge or payment), but, otherwise, it has no bearing on the reporting.  The collection accounts will fall off 7.5 years after the “date of first delinquency” (DOFD).  That is the date the account went into default and was never brought back to a current status. That date is usually reported by the original creditor.  Even if the account is sold and is reported by a debt buyer, the debt buyer’s reporting still has to be removed 7 to 7.5 years after that DOFD that occurred with the original creditor.  

[Uncle Reggie]

My Equifax treats my 2 collections from charged-off credit cards as closed 'other accounts' as well. And they do not list anything under 'Collections.' 

I think it is just an idiosyncracy of Equifax. They also show one of the two credits card accounts that were charged off as 'closed' revolving credit accounts.