Closed Account Debt Collections

Summary

A closed status on your credit report generally means no further charges, but it doesnt erase existing debt. In both Michigan and Utah, outstanding debt can still be sent to collections. The validity of the debt depends on the statute of limitations, which varies by state and debt type. Consult a local legal advisor for personalized advice.

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Utah
It's essential to know that in Utah:
- A "closed" status on your credit report usually means the lender has closed your account, so additional fees shouldn't be charged.
- However, it doesn't cancel any existing debt you owe.
Please consult a legal advisor for personalized advice.
The account was opened in michigan
Based on what you've shared, it seems the account was opened in Michigan but you're currently in Utah. It's important to know:
- Michigan law also suggests that a "closed" status generally means no further charges.
- However, it doesn't erase any existing debt.
Please consult a local legal advisor for personalized advice.
But since this was closed on my credit report that means it can never go back into collections again, correct?
In both Michigan and Utah:
- A closed account can still be sent to collections if there's outstanding debt.
- The debt's validity depends on the statute of limitations, which varies by state and debt type.
Please consult a local legal advisor for personalized advice.
So I had a bill go to collections and then get closed. They can send it back to collections again still?
Yes, in both Michigan and Utah, even if an account is closed, if there's still an outstanding debt, it can be sent back to collections. However, the validity of the debt depends on the statute of limitations. Please consult a local legal advisor for more information.
Thank you
You're welcome! If you have any more questions in the future, don't hesitate to ask. Remember, it's always a good idea to consult with a legal advisor for personalized advice. Stay informed and take care.