What to check on a collection account

Collections get bought, sold and re-reported. Every time a debt changes hands, there's room for mistakes. Here's what to look at, line by line.

A collection on your report should be accurate, complete and about you. Check these five things:

• Is it yours? Match the original creditor and the amount to a bill you actually had.
• Is the amount right? Compare it to what you owed the original creditor. Collectors can only add interest or fees if your original contract or the law allows it.
• Are the dates right? Look for the date of first delinquency. That date should stay the same no matter who owns the debt now.
• Is it listed more than once? The same debt shouldn't show a balance owed with two companies at the same time.
• Does it match across bureaus? The same account with different amounts or dates on different reports is worth a closer look.

You also have rights with debt collectors. Under federal law, a collector has to give you basic information about the debt, including who the creditor is and how much they say you owe. If you dispute the debt in writing within the window described in that notice (generally about 30 days after you receive it), the collector has to pause collection until it sends you verification.

• Validation notice: the information a debt collector must give you about the debt.
• Verification: what a collector sends to back up a debt you disputed.
• Duplicate reporting: the same debt showing a balance owed in more than one place.
• Re-aging: reporting an old debt with a newer delinquency date so it stays on your report longer. That isn't allowed.

Renee finds two collections on Experian: $850 from Agency A and $850 from Agency B, both with the same original creditor. On TransUnion, only Agency B shows up, with the original delinquency date listed as 2021. On Experian, Agency A lists 2024. Same debt, two balances, two different dates. Those are exactly the details worth questioning. (Made-up example.)

• Keep every letter a collector sends you, including the envelope.
• Don't confirm a debt is yours on the phone until you've checked the details.
• A debt you don't recognize at all could be a mix-up, or it could be identity theft. If you suspect identity theft, start at IdentityTheft.gov.
• If everything checks out and the debt is accurate, the right move is a plan to deal with it, not a dispute.

Take one collection and run it through the five checks above. Write "OK" or "question" next to each one. Any "question" is something to look into before you pay, settle or dispute anything.

Educational information only. Not legal, financial, investment or tax advice. Results vary, and no one can guarantee credit outcomes.