My husband had a loan from Acme Financial which is now a collection account. On his credit report, they keep reporting every month that his account is a chargeoff or collection........i.e. Sept04, collection or c/o, oct.04 collection or c/o, nov04 collection or c/o. I thought that once an account was in collection or charge off that there would not be anything reported on it until there is activity......i.e. payment made, collection paid off. The way it is listed, they have it listed like an active account and keep reporting it as such every month - except instead of listing 30, 60 days late it has collection or chargeoff repeating every month. I have to imagine that this is really bringing my husband's score down every month by continuing to report it this way. Can Acme do this? On any other collection I have seen, the reporting of the account has stopped on the date it turned into a collection account. Your thoughts?????
My understanding is they are reporting the status of the account (in this case collections) and can do so every month - just like a positive trade line reports. The thing to watch out for is that they don't re-age the account.
