More and more credit reports I see are chocked full of smaller medical collections and cell phone collections, etc. down to $20!  These are being reported monthly with sophisticated software by collection companies and banks to make sure the credit scores are effected the most.  By keeping the item current, the scores will drop lower and eventually, the person with the delinquent account will have to pay it.

The first negative information can only be reported on credit reports for 7 years but with things such as charge-offs or a new payment plans, this date might start over as when collection companies sell these to other companies.  Creditors are not supposed to re-age the debt keeping it on there for another 7 year which is a violation of the Fair Credit Reporting Act (FCRA) but many do.

On your credit report you may see up to 2 references.  However, only 1 should have a dollar amount for the same bureau.  In most cases you will see the original creditor listed as a "Charge-Off" and a zero balance. You then can see another collection account with the actual amount due. If you see more than this you can send in disputes to the credit reporting agency.

The industry is evolving and this is having a big effect on the economy.  Just read some exerpts I got off several collection company sites promoting their technology in trying to pick up more clients...

"Take advantage of our state-of-the-art software technologies we deploy to efficiently and effectively integrate and collect your account receivables."

"..fully automated with the latest in computer software and technology. We utilize numerous on-line resources for skip tracing. We pursue accounts for voluntary payment but do not hesitate to pursue legal action.  We report all accounts to the credit bureau(s) such as TransUnion, Equifax, and Experian."

 

"Technology is the edge in our industry, as well as yours. The combination of our predictive dialing system and recently enhanced collection software, including work flow queues and global processing, two of the most powerful features available in database management, provide us with the tools to stay at the leading edge in our industry."

So, send all of your prospects to me so I can try to get them approved and I'll give all of them some credit counciling too.   By being a trusted resource, they will eventually call me and YOU back for help with their next transaction and they will refer their friends and family to us too.