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Collections – Collection item or account
Collection item or account is the term used to describe a
person's loan or debt which has been submitted to a collection agency through a
creditor. The term is not used on debts with only original creditors.
The collection account normally appears on the credit report
of a person (debtor) who has had one or more accounts referred to collection
agencies, within the last seven years. The name of the collection agency, and
the amount of money a person owes, will be listed in the report. Also, in some
cases, the agency's contact information is listed. If a debtor pays off a
collection account, the item will not be removed from the credit reports - it
will simply be marked "Paid."
However, if a dispute regarding the validity of the debt is
filed, an agency is prohibited from placing the debt on the debtor’s credit
report, until the dispute is resolved and the debt is indeed verified as
accurate.
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