Collections and Recovery
Tracking post-charge-off collections without misrepresenting new credit.
Updated 8/14/2025 · 1 min read
Clarity over time
Reflect recoveries against the charged-off amount while keeping the original charge-off reference constant. Avoid creating new tradelines for internal recovery accounting.
Ownership changes
When debts are sold, clearly report the sale so consumers do not see duplicate active obligations. Use K2 and, where relevant, close the seller's tradeline appropriately.
Disputes and validation
Collections trigger heightened consumer scrutiny. Maintain documentation for disputes, ensure DOFD is correct, and stop reporting once legal obligations end.
Last updated
8/14/2025