what does it mean when a collection account is closed but there is still balance? is there a time frame that I need to pay it off and how will it affect my credit score?
Closed collection account means that the creditor has closed down your credit account and sold off the outstanding debt to the collection agency. This means that the collection agency now owns the debt and you are required to pay it to the CA.
You are liable to pay off the debt to the CA till the Statute of Limitation on the debt has expired. Once the SOL expires neither the CA nor the creditor can recover the debt.
Since the collection account is already listed as delinquent in your credit report, it will stay there for seven years and six months from the date of your last missed payment towards the debt and affect your credit score. All you need to do is to get the debt validated from the CA and negotiate for a PFD agreement so that as soon as you pay off the outstanding amount in full, the negative item will get removed from your score and your score will improve.
Closed collection account means that the creditor has closed down your credit account and sold off the outstanding debt to the collection agency. This means that the collection agency now owns the debt and you are required to pay it to the CA.
You are liable to pay off the debt to the CA till the Statute of Limitation on the debt has expired. Once the SOL expires neither the CA nor the creditor can recover the debt.
Since the collection account is already listed as delinquent in your credit report, it will stay there for seven years and six months from the date of your last missed payment towards the debt and affect your credit score. All you need to do is to get the debt validated from the CA and negotiate for a PFD agreement so that as soon as you pay off the outstanding amount in full, the negative item will get removed from your score and your score will improve.
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Td8Rel Awesome blog article.Really looking forward to read more. Awesome.