Account Terms
Collection Account: Definition
A delinquent account placed with a collection agency.
Definition
A collection account is a debt that has been assigned or sold to a third-party collection agency for recovery. Collection accounts appear as separate tradelines on credit reports and significantly impact credit scores. They remain for 7 years from the Date of First Delinquency of the original account.
Examples
Account reported by collection agency with original creditor info
Usage Notes
- Original creditor info reported via K1 Segment
- May be reported by both original creditor and collector
- Paid collections still impact credit scores
Related Terms
More Account Terms
Account Status
A code indicating the current condition of an account.
Account Type
A code specifying the type of credit account.
Account Number
The unique identifier assigned to a credit account.
Amount Past Due
The total amount currently overdue on an account.
Current Balance
The total outstanding balance on an account.
Credit Limit
The maximum amount of credit available on a revolving account.
Highest Credit
The highest balance ever recorded on the account.
Original Loan Amount
The initial amount borrowed on an installment account.
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