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What is a paid collection?

A paid collection is an account that went into debt collections because it was past due and then was paid.

The CFPB’s Debt Collection Rule clarifying certain provisions of the Fair Debt Collection Practices Act (FDCPA) became effective on November 30, 2021.

A debt can be considered a paid collection because you paid it in full or because the debt collector agreed to accept a partial payment to settle the debt. Paid debts are often reflected in your credit report. If the original debt was reported to the credit reporting companies, the paid debt generally will also be reflected on your credit reports.