Hello and I'm so glad to have found this site!
I would really appreciate some feedback on this issue.
I just paid for my credit report on Transunion and was quite surprised to find bad debt/write off listed on my report by American Express. To explain; I did have a problem many (will be checking precisely how many) years ago with an American Express credit card and as they were intractable about working with me, it was sent to a collection agency. I paid the balance owing in full. It shows as occurring in 2004 and I know it was long before that but will have to search dusty records, etc.
My question is how to show potential creditors that this was paid, even if under less than ideal circumstances. All other reports are favourable and I think this one is the reason my interest rates are higher than I think I should be paying.
Thanks very much!

I am also extremely interested in this. I am currently dealing with a situation from about a year ago, where my ex-employer came after me with false claims regarding i was over paid......anyways, long story short, i ended up paying the collections agency within 4 days of the collection being filed.....but for some reason the collections agency STILL reported it on my bureau after it was paid....and i have all the proof of dates/confirmation of payment etc confirming this.......

And now the paid collection is showing on my bureau and effects my credit score....I feel like this action of the collections agency should essentially be illegal? Any opinions/insight??

Collection agencies will report if their client requests it. Some can't be bothered BUT it does'nt mean policies of creditors can't change. I had cleaned my credit up to a 724 FICO until Telus (home) put a collection on from a debt with a last payment January 2003. Well, ah, not paying it now, will drop off next Jan. I can wait and keep the $1100. Like you, roomate situation. I left and didn't follow up on the account. Needless to say January 2008, it will be 6 years old so it will just drop off Equifax, I will probably have to contact TransUnion to remove it, but they do remove old data usually within 30-45 days of filing the web investigation form.

Honestly, it's hard to give advise when paying or not paying an agency. My troubles started several years ago with a $4000 Rogers Bill that just showed up as a collection letter. Rogers didn't work with me at all. The collection agency, who had not reported at the time, said that regardless if I do pay it off, they still may or may not report it. Ok, so where is the incentive for me to pay this then? So I didn't, changed my phone number that day. Two years later and after two collection agencies had it, it was removed several months ago. It's probably on the auction block and I expect the "offer" letters. But there recourse now is next to nothing. Advise? NEVER pay a collection agency EVER. Believe it or not, you have a better chance of getting a derogatory debt off your credit file than you do pay a debt.

At a year old it's seriously slamming your score.

I haven't spent much time on the privacy act, so there might be something there I don't know about, but if you owe money, so far as I know they are permitted to hand it over to a third party collector. It doesn't make sense to me that they couldn't.

The last date shown is in January 2007. So, just over a year ago.

Angella, do you have any idea how much of an affect this "collection account" has on my score?

Plus, I still didn't sign anything that gives Boardwalk permission to send any money owed to a 3rd party......so how can they report it?

Nope. It's six years from the date of last payment, no matter what. They can, unfortunately, report a collection whether it is credit or not. I'm afraid your stuck. How long ago did this happen?

ugh... that sounds like a pain in the butt.

As far as I know a collection account will remain on your Equifax (not sure about TU) file 6 years if not paid and 3 years if paid and settled.
I'm not sure if there is a consumer law that states you need a contract to send something to collections. Maybe Montee might know the answer.

My former roommate and I both have this "collection account" on our credit bureau.

I pulled both my EQ & TU reports, that is why I know it is on there.

It is listed under "collection accounts" (delinquent accounts sent for recovery) is the title. So, it isn't listed as a "revolving account", or an "installment account".

The account is listed as paid, but I wonder what affect it has on my credit score, and if it will remain for 6 years?

Any opinions?

Also, I thought they had to have a signed agreement that allowed them to send you to 3rd party collections. That I know they don't have, as it is no where in the lease agreement.

I have filed a dispute online with TU, and will see where it leads, Boardwalk is terrible with records, as I have witnessed first hand time and time again.

What's to be confused about. He had a room mate. The former landlord made a claim against them that may or may not have been founded, but the former roommate needed it handled ASAP, so paid it.

This paid debt is now in collections.

Seems straightforward to me.

I'm confused about your question now... first it was a friend of yours, now it's you?

I mean, the only time a a landloard has something "put" on your bureau, is when/if they do a credit check on you (rentcheck.com) or you have a judgement. Since you don't have either one, I don't get what your saying. Your rental property was reported regularly on your bureau as open credit? That's hard to believe. I've never heard of that.

Beerguy, have you actually pulled a bureau to see for your self, or are you just going by this cop?