You may be asking why do I have a Closed Account Tradeline also in Collections at the same time.
Well, Tradelines are accounts reporting to the Credit Bureaus that a consumer has an agreement with them on a loan. These will either be Open or Closed.
Those where the creditor or consumer have closed a revolving line of credit or an installment loan, they are closed accounts.
Closed Accounts may be Paid as Agreed and closed with no harm to the consumers credit, outside of Utilization and Length of Credit. But they can also be a Charge Off-
Charge Offs mean the creditor has given up trying to collect on the account and they’d rather just sell it to a debt buyer for pennies on the dollar. They still are within their rights to report the tradeline accurately even after they sell the debt.
Why is there a Collection and a Charge Off both on this tradeline?
A collection is placed on a credit file by a debt collector that purchased or contracted the right to collect on said debt. They may also report this collection, lawfully.
They can continue to bring the collection up-to-date in their monthly reporting, noting the debt is still unpaid at that time. Once the debt is paid, they will not remove Collections, but instead update it as paid (typically).
That is why you can have both things, a Charge -Off with the Creditor, and a Collection both reporting on the same debts at the same time. They may however be reporting it incorrectly, and that is a different matter.