3 jaw chuck internal clamping alignment issue

I would doubt that you are supposed to do any machining on it. But by collar, do you just mean that the center portion sticks out, or does it have narrow slits every 90 or 120 degrees around? A photo would possibly help. Keep in mind that there should be an unthreaded quarter inch or so before the threads start.
 
I meant center portion sticks out when I was referring to the collar no slits on the backside of the chuck at all


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Well, I guess that for some reason, they just made the backplate that way. Absent a photo to look at, all I can recommend is to leave it be.
 
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