Paid In Full Is The Right Time
A paid in full collection account should always have a date of last payment which is on or before the Date Closed.
When Collection Accounts (93 account assigned to internal external collections – Metro 2® Format Code) have been ‘Paid In Full’ (62 Account Paid In Full Was A Collection – Metro 2® Format Code) is the time to use a Date of Last Payment.
Next, if a consumer is making payments on their collection account, you are allowed to report this progress in the Date Of Last Payment field, but, don’t expect this to build a 24 month credit history matrix. In other words, you can take the time to report this date if you can but this will not build a traditional tracked payment history for this consumers collection account.
Do I have to report this date when they are making payments? Many collection companies only report this date when the account is paid and closed or special conditions require it. This is because they have no easy way to report this date with their current technical capabilities as payments are made. So, before you just start omitting the date, talk to your credit bureau representative. They will help you determine the best course in this kind of situation. Otherwise, if the date is there and accurate, you should report it for better accuracy.
Why do I have a date of last payment error?
Many collection agencies will attempt to report the date of last payment from the original creditor. Don’t do this, never use the date of last payment from the original creditor. This date now applies to you , the collection agency and not when the consumer stopped paying their original bill that led to the account being placed for collection.
- If you have an open collection account with a date of last payment which comes before the date opened, do the following:
Delete the date if:
- it is clearly from the original creditor and not reported by your agency -and-
- it is NOT a close/paid collection account (62 Account Paid In Full Was A Collection – Metro 2® Format Code)
- If the date is from your agency make sure it’s not just a type-o and correct the date if it should be present in the instance of a paid closed account or an account making payments. But remember, it must come after the date opened and date of first delinquency AND before the Date Closed and Date of Account Information. This date must reflect payments made to the collection account controlled by YOUR agency and not the original creditor.
- When in doubt, for non-closed, open collection accounts, just delete the Date Of Last Payment to correct the error with the credit bureau. If your credit bureau requests it later you can resolve it then, but this should clear up your Bureau Validation Errors.
Metro 2® Specific
426 Base Segment – Date Of Last Payment:
- field: 27
- name: Date of Last Payment
- required: A (Field is required when applicable to the account being reported-M2CRRG)
- length: 8
- position: 206-213