Do collection accounts age off your credit report after 7 years?
So I have debt from store lines of credit to a bank credit card. I haven't paid on them since at LATEST December 2007. Chase, citi financial (store line of credit) and Sears line of credit all have it showing closed but I am getting reporting from some debt collector companies.
I live in Arizona and just ordered my actual credit report today. I viewed the information online through a credit score tracking website. I read a lot of comments and researched online somethings. My questions are can any of them take me to court still because from what I read some debts are 3 years and some are 6 here in Arizona, I am not sure what they fall under, also at 7 years they have to stop reporting to my credit so I am told. Does this mean that it will show the old reports but they cant continue to report and since the original lenders have the accounts closed can the debt collector who purchased the debt also show up as a closed account or do they just disappear forever?
Any information to better understand when or if this will ever not be an issue for me would be helpful, as these debts were ran up by my ex and are thousands of dollars I cant and haven't been able to afford to even attempt to fix.
Do collection accounts get removed from my credit reports after 7 years?
—Jennifer
Short answer
Yes, but the clock is not the one most people count from. Negative items stay on your credit report for up to 7 years measured from the first missed payment to the original lender, and every entry tied to that same debt should age off on that same date.
Key points on this page
- Original lenders and creditors show payment default for up to 7 years from when you stopped paying.
- The 7 years starts at the first missed payment to your lender, not at the date a collection agency or debt buyer picked up the account.
- All negative trade lines related to the same collection account should age off at that same 7 year mark.
- Only one entry for a bill should show an unpaid balance. If a debt buyer reports a balance owed, check that the original lender no longer shows one.
- A collection account reporting a newer date of last activity prolongs the credit damage, so compare that date against the original lender’s.
- If the debt is still inside the statute of limitations to sue, a dispute can wake a collector who was not bothering you. Weigh that before sending one.
Original lenders and creditors show payment default on your credit reports for up to 7 years from when you stopped paying on the account.
When you first miss payments to a creditor or lender, you will see late pays show up in 30 day blocks of time on your credit report. If the accounts remain unpaid long enough, those 30 day incremental late pays turn into a charge off reporting on your credit. With credit cards, charge offs normally occur within 180 days of consecutively missed payments (they can happen sooner than 180 days).
The 7 years the negative item stays on your credit report starts from the first missed payment to your lender.
When your accounts get this far behind, it is standard to have the account placed with outside collection agencies, and often repeatedly. Many creditors have a practice of selling off debts that remain unpaid long enough to debt buyers. They are legally transferring the rights to the debt to someone else, as is often laid out in your original contract with them.
Collection Agencies and Debt Buyers Showing Up on Your Credit Report
When an additional entry from a collection agency shows up on your credit report it is important to look for some key items:
- Is the new entry showing a balance due? A debt buyer who reports a collection account to the credit bureaus with a balance owed should be matched with the original lenders negative credit reporting to be certain that the original lender no longer shows a balance is owed to them. You should not have more than one credit entry showing an unpaid and due amount on your report for the same bill.
- Does the collection account show a date of last activity on your report that is different than the date your original lender is showing? Collection accounts that are reporting separate from, but related to an existing negative item on your report, should not show a newer date. If a newer date is used by a collection agency reporting, it prolongs the credit damage and will take longer for you to improve your credit.
All negative trade lines related to the same collection account should age off of your credit report at the same 7 year mark you use to calculate your first missed payment to your original lender. The exception used to be when people got sued for collection and ended up with a judgment over one or more of the debts – which would show in the public records section of your credit report for 7 years from the date judgment was entered in the court.
Most judgments obtained in state courts were taken off our credit reports with Equifax, Experian, and TransUnion as of July 2017
What to Do If You Need to Dispute a Collection Account on Your Report
I will have an upcoming article about disputing incorrect information on your credit report, but for now, it is important to consider the following:
If your debt is within the SOL (statute of limitations), to legitimately sue you for collection, you should carefully consider whether or not to send a dispute about a collection account on your credit report, even if it is showing incorrect information. When there is still room on the clock to sue you, sending a dispute may wake the collector to the fact that you are:
- Still an unpaid account.
- Care enough to start cleaning up your credit report (usually for some credit goals, which means you are more collectible).
If your debts are beyond the SOL to sue you legitimately, you should have less concern about waking a sleepy debt collector who may not have been bothering you, with disputes about getting your credit reports corrected.
Legislation was passed in 2011 that changed the SOL from 3 to 6 years in Arizona. Given the information you shared about 2007 being the earliest date of last payment, your debts may/may not be off of the current debt owner’s radar. You would need to be certain about the date each of account was last paid. Any of them you know were paid last in 2006 would be clear of the SOL.
Reviewing your credit reports for accuracy when you know you have old collection items is important. Staying on top of when and how to get your credit reports corrected will help you plan for future access to credit at fair prices.
If you have a particular issue or question you can post in the comments below for feedback.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
Can you tell me how to find out the original late date on a debt that is now with a collection agency? I have a few accounts that are showing opened 2006/2007 but reported 2011, 2012, 2013. if I remember correctly my last payment was in or around 2006/2007 but before I dispute I would like to verify. thank you in advance for your time.
tatiana – Which credit report are you looking at in order to determine your date of last payment?
Im getting the info from scoresence it shows all 3..
Are you able to match up the original creditors that are showing up as a negative item with those that are appearing from collection agencies?
Your date of first missed payment on the original accounts in the reports should be what you use to measure when those, and any later collection entries for the same accounts, would fall off. You can raise disputes on those more recent debt collections reporting if they are reporting a much more recent date than the ones from 2006 that are likely supposed to have fallen off, or soon will. 2007 dates may not age off until sometime this year, or early part of 2015 (depending on when the first payments were missed).
If you cannot find a corresponding entry for the more recent collection accounts you know are older, it could be that those should have fallen off with the original entries, but did not due to how the debt collectors reported. These can be disputed as too old.
If I had an unpaid debt in June of 2006 and it was charged off but sold twice, this last time in Dec. 2013 and no payments have been made in 7 years can this new collection agency that just bought it put it on my credit report as opened in Dec. 2013 (which is what they have done)? Am I able to have it removed since it was originally over 7 years old?
sandy – From what you shared January 2014 would be 7.5 years from the accounts first missed payment, so any negative credit reporting related to the account should drop off your credit reports. Yes, you can dispute things like this and get the corrected/removed. First some questions:
Is the original credit still reporting this? If so, what date to they show as your first missed payment?
Who is the debt collector or buyer that is suddenly reporting this?
Is this collection account showing on all of your credit reports? If not all, which ones have this on there?
Matt…the car was paid off in 2005?? If s, as a good debt it would continue to report for 10 years, regardless of your divorce. A divorce is a family court matter…they have no bearing on debts whatsoever. If a party refuses or does not pay what is order by a family court order, you would have to take that party back to court on contempt. To the creditor, your name is still legally responsible for the debt.
Should I do by phone , mail or computer?
Matt – If the debt aged off of your credit reports after 7 years already, it should not have reappeared. Who is reporting the collection account to the bureaus? Is it only appearing on TransUnion, or have you checked your other credit reports and it appears there too?
Your answers to those questions will help me offer better feedback. Once you are ready to dispute a collection entry on your credit report that should not be there, it is best to do that through the mail and by sending certified return receipt.
I had a dept for unpaid vehicle (divorce) it came off my cr because of age , it was back in 2005 original (last payment) . I just received a letter from a credit agency for the dept , it’s almost 9 years old , how do I get it off ? Do I dispute with the collection agency or credit agencies (transition etc) or both ? How do I go about doing that ?
I owed Chase about 10K on 2 different accounts. Hired an attorney who helped us settle other credit cards. All others are settled and we get a copy of a 1099-C for each account showing Chase has written off the entire amount. Now that shows on our credit report as a much more negative than the others that we settled for less than the total balance. We were very surprised becuase we were willing to settle. How do we fix this so the reporting to the credit agencies is not so negatively affected? How do we get Chase to change the reporting to the credit agencies?
Steve – What is the date showing for the Chase charge off accounts on your credit reports? It is normal for credit cards to show charge off after 180 days on nonpayment. It is normal for Chase to report there is a balance due and still owed. If Chase sells the debt, it is normal for Chase to then show zero owed to them on your credit reports, and for the debt buyer to later show up as a collection account and show that they are now owed the balance.
Where do both Chase credit cards fit in your credit reports given that brief outline?
Credit reporting and the 1099c are not related. But there may be some options for you to pursue here. Post answers and any additional details in a follow up comment and lets go from there.
Account submitted to collection on 10-13. In April of 2012 I had never been late on a payment in over 30 years of payment history. Several credit card companies raised my interest and payments by an extreme amount. I called to discuss and I was told by two different companies that I had never been late so there was nothing to negotiate. I then hired an attorney and stopped paying these credit cards. I have settled all but these 2 chase, which I was willing to settle but instead the 1099’s showed up and they just wrote the debt off. We are wanting to purchase a home and the settled debt is OK but these two Chase accounts are a problem. I appreciate your counsel here.
Steve – With the Chase treating these accounts as forgiven debt for IRS reporting purposes, does the balance owed on your credit reports show zero? Let me know and I will have some additional feedback to share.
Michael,
The balances I owed are still showing on my credit report.
Steve – Can we connect on the phone about your issues and my feedback? I am out today and Friday. Let me know with a reply to the comment notification emails you get.
I have a collection that i paid off and its due to age off in 2015. Will this improve my credit score?
jason – Maybe. How long ago did you pay the collection account? Is it showing a zero balance owed or paid on your credit reports now? Were you paying attention to your credit scores at the time you paid the debt off? If so, what were your scores before and after paying the lender/collection agency?
Also, one of the citi credit cards I had was no interest no payments for 12 months, it was open 6/1/07 so does that mean since it technically wasnt past due until 7/1/08 that I need to wait 7.5 from 2008?
Jennifer – If the agreement with Citibank was such that your first late payment was not recorded, or considered late, until that 12 months elapsed, than that is when the first 30 day late pay should show on your credit reports. Can you verify when Citi is reporting the first 30 day late on one or more of your reports and post an update with what you found?
On this freecredit report I still have access to is only shows the date open. I could call them and find out though right?
Yes, you can call and ask about it.
Kinda weird that Citibank did not report a 30, 60, 90 day late etc., on your credit reports. Does the account show as charged off?
It does show charged off I am just trying to figure when it should fall of my report. Also I think another agency picked it up, and the original open date of the account was 6/2007 and the collection agency is saying open date of 8/2008.
Collection agency and debt buyer reporting is another thing entirely. You do have to stay on top of that and be aware of any and all corresponding entries, that relate to a single account, drop from the credit report at the same time as the original creditors credit report entry. Collections reporting has had a tendency to report a date newer so that it can stay on the credit report longer. This is becoming easier to dispute with credit reporting bureaus and collection agencies directly. Having said that, the 12 month deferment puts the first late payment on the Citibank account pretty close to what the agency is reporting.
Also just so it’s clear for other readers, from my understanding if you make a payment on something past due, say 2 years past due, and then default on it again, it WILL reset the date to the most recent date you defaulted. Is this correct?
Jennifer – Your example is too vague to respond to. Here is what I am referring to:
Monthly credit card bill cannot be paid for 18 months. Collection calls and letters come and go, new debt collectors call for a while, then another new collector etc. At 18 months you are back on your feet with a new job that pays well. You pick up a call from a debt collector on this account and agree to payments. Two months later you are told in a review that you are not right for the position and are let go. You miss the 3rd scheduled payment you agreed to because you cannot afford it. Nothing in this example allows for a reset of the negative account to stay on your credit report for a fresh 7 years. The account would still drop off of your credit reports using the date you first stopped paying the original credit card bank.
There are instances where an account can be brought current or re-aged, and thereby have longer credit reporting legs, but with credit card bills that usually needs to happen before creditors charge off debts, so accounts get turned around after only a few months budget shortfall. Even then, 30/60 day late pays on open accounts are going to age off too.
Did that answer the question?
I think so…. So when it is with original lender and you go past due and then bring current, then at that point if you become past due again then it will be a “NEW” report for a new set of late payments but the old report from the first late payments will age off for its own separate report. If an account if far enough past due for it to go to collections then that account will never change with the original past due date since you cant truly get “New” charges (other than fees).
Pretty much how you said it, yes. There are some nuances I could throw in there, but they do not apply to your situation with accounts that old.
Michael, I have done a lot to turn my credit around since my first inquiry to you. I have a new question. I had some smaller amounts that I found after running my credit report (mainly medical bills I didnt realize I had due) I paid some off and now I am wondering if I paid something off, say today, that was already 3 years past due is it going to fall of my credit report 7.5 years from today or from the original date it became past due with the original medical provider? Thank you for all your help, you have really been a blessing to me to help take care of my past debt issues.
Jennifer – Thanks for coming back to the site and participating. The medical collections should drop off your credit report 7 to 7.5 years from the date payments stopped. Settling for less, or paying in full, 3 or even 5 years later, does not reset the time for it to stay on your credit reports.
Thank you so much for all your help. I am so excited to have my credit repaired!!
What about medical collections past SOL? I live in Michigan, SOL is 6 years. All 3 of mine pass SOL in Oct of this year (2014) The agecncy told me they could not negotiate a PFD without the account paid in full. I am wondering if I could attempt for PFD again after SOL is over? Are they able to negotiate then? I only contacted them to find out my options and get the original date of delinq. They have 3 seperate accounts on me for small amounts ($279, $239) and only have 3-4 months to take legal action. I’m not really concerned with being sued at this point. I just need the items removed, but for a smaller amount. Maybe in Oct they’ll reconsider?
It is possible they will reconsider, but I doubt it. It is probably their policy. You would have to have a compelling reason for them to make an adjustment to their standard operating procedures. And even then they may not.
What is going on in your credit life that has you concerned these three small collection accounts get removed from your credit reports now, as opposed to a year and a half from now?
I really want to get a mortgage. I am sick of renting and could be saving more money by paying less for a loan. I want to own something. I just want to move on from these collections and build my credit so I can have a better financial future. I have started by adding 2 new revolving accounts as of April. I have never had revolving credit on my report and I believe this will help to build a good history. I have studied hard on how to improve my credit and I just need these collections to GO AWAY! I can’t even get an installment loan to pay them off because …. I have collections. It’s a terrible situation. I don’t want to spend the only money I have to put toward an FHA loan getting these collections removed. It’s pointless in the end – because I end up with no down payment. I’m not sure what I can do at the moment. October looks bright – but I’m not sure if this new credit history will be enough to put me over a 620/640. Eq 571 (3 collections, 1 “other” account (with a lot of late payments, utility) and now these 2 revolving lines. That’s it! Oldest account over 3 years, and AAoA just dropped to a little over a year. 18% utl.
It sounds like you either need more money, a skip forward button, or the patience to wait this out. This far along with collection items like this, you are looking at settling, or the collection accounts falling off your credit, in order to increase your ability to qualify for FHA underwriting.
Do not allow any new derogatory information to appear on your reports, keep your utilization low like it is now, and you will probably be in the shape you need to be in when the collections roll off. It is probably a good idea to locate an FHA lender and start working with a loan officer too. Just be sure you connect with an experienced one. There are exceptions to the general guidance on underwriting from the FHA. You may qualify.
I understand, and that is what I thought about the collections. I am wondering though, if these 2 new added revolving accounts will be enough to raise my score within 6 months? I’ve had a “thin file” for so long and now I actually have some credit to show. But from what I understand, it takes FICO 6 months to score me on them. Is this correct? (Or are EQ/EX scorable because they had the “Other/Open” loan for 3 years?) I’m new to figuring out my credit and I really just want to know what to expect! I don’t want to have unrealistic expectations. I do intend to make on time payments from here on out and keep utilization low. I was hoping to be where I want (620/640) by October. If you have to break my heart and tell me it’s not possible – please do so. I need to hear the truth!
I do think it is possible, but more so from a point where the older collections drop off your credit reports, than from the seasoning of the newest trade lines.
One more question (Sorry). I just found out that for 1 of the medical collections (that was for my daughter) – she had insurance at the time! I’m having medicaid send me the proof of her eligibility at the time. But it’s 6 years down the road (almost) and I know Medicaid more than likely will not pay it. But I don’t know how this mistake happened in the first place. She’s always had insurance through the state! Is there any way to clear this one up? The OC is no longer collecting, it’s a CA.
I think you are fighting a huge uphill battle getting insurance applied to a 6 year old medical debt that has reached late stage collections. More so if the debt was sold.
I received my verification of eligibility for my daughter’s insurance yesterday. I’m not sure what I can do with this document. Any recommendations?
How do I get the collection agency to settle for less for a deletion?? The SOL is up in 3/4 months. They’ve already stated to me that it would have to be paid in full to be deleted. I know there has to be some way around this. Do I just keep calling back? They have a very routine call where they notify you immediately that they are trying to collect a debt and the call is recorded. I made sure that the one time I called that I did not admit to the debt and just want to clean up my report.
I feel like I’ve hit a brick wall with these collections. There has to be somewhere to meet in the middle between letting them fall off or paying them in full. Please give me your opinion!
What is the name of the collection agency, or debt owner?
Money Recovery Nationwide. They are based in Livonia, MI.
If it were me, I would let the SOL lapse, and save up more for my initial down payment in the mean time.
I do not think you will get a pay for delete from Money Recovery Nationwide. But you can resolve the debt by either paying the balance, or negotiating a lower payoff, and get your credit report updated to show the debt is paid. This may not help your credit score immediately, but can still help you get approved for a mortgage.
I would like to negotiate a lower payoff – so how do I do that once the SOL passes? And what would be a reasonable offer? The 3 debts total $797. $239 of which I am still fighting because my daughter had insurance at the time.
I generally target medical debts at 50% of the current balance. If there are severe hardship scenarios those targets can be lower.
Read through this post and the comments for tips and timing for settling with debt collectors: https://consumerrecoverynetwork.com/question/medical-bills-collection-agency-settle-make-payments/
Hi,
My question is I had a car loan of $8000 about 6, almost 7 years ago but my car was stolen so I stopped making payments. About a month ago I got a call from a debt collector saying I owed $4000 and they asked me to make payments. I made about 4 ($100) payments but I financially I cannot afford it. I told him I am not making anymore payments and id rather wait till if falls off. He said since I made payments it reset the years of how long it would take to fall off. Is this true? And what do you recommend I do? -Thank you for all your help -Jeff
What is the name of the debt collection agency?
Question regarding account bought by Midland credit management and I am in Virginia. Original debt was to Capital one for 1500. Capital one account says closed and $0 balance, sold to midland funding. Midland funding brought a judgement against me. I hired and attorney and went to court. Because they do not have the original documentation, the court agreed I did not have to pay. It is still on my credit reports and is now $2100. any advice on what to do about this. The balance date is Feb, 2010. I have disputed it last year and my reports reflect that.
Also I have a bankruptcy from January 2005. does this automatically come off next January or do I have to call and have them remove that.
Thanks
Midland Credit Management on your credit reports will not necessarily be impacted by your getting a lawsuit dismissed, or even the court saying they could not prove their collections claim. Credit reporting from debt collectors is often separate from the court action unless you make that part of some outcome you are looking for.
The bankruptcy from 2005 should fall off your credit on schedule. You should not have to call or write the bureaus to get that removed. If for some reason the BK is not removed at the right time, post an update and lets go from there.
Hi… I’m still not sure what to do… my husband and I have been trying to buy a house, but when they check our credit reports it shows a old cell phone bill from 2000. It was with Nextel… but now Nextel is with Sprint… Sprint, is showing up on my credit report showing how much I owe them except it’s not effecting my credit score but it is on my credit report. When the banks pull my report, it shows a flag saying that I still owe them… I just read some thing about how I shouldn’t pay this because it could give them the opportunity to SUE me? Please help. ..don’t know what to do. … thnxs
Cheryl – Where did you read about paying off a debt leading to the risk of being sued? It is the opposite. Paying off a collection debt is how you keep from being sued. But before you do that, I am wondering why a collection account, from a phone bill in 2000, is on your credit report at all? When exactly was the last payment made on this bill? If the last payment was made 13 years ago, the negative credit reporting from that should have dropped off of your credit reports 6-ish years ago.
Exactly how is this showing on your credit report? And who is it that is reporting the collection?
I hired a law firm that specializes in correcting credit reports, Lexington Law. After failing to get it resolved on my own. Basically the collection agency just ignored me and the credit bureaus took the collection agency’s word, even after I sent proper documentation of the debt being paid off. I sent all of the paper work to Lexington Law showing that I paid off debt owed to an apartment complex after falling on hard times and loosing my employment then the apartment. I have a letter on the apartment complex letter head that states the amount was paid in full. The apartment complex then sold the debt to a disreputable collection agency National Credit System(s). This disreputable company increased the amount owed by about $2,936.00 or more and are now reporting that I owe them $4,376.00. My original lease contract stated that in the event of early termination or default on rent the maximum that I would be liable for is about $1,440.00, twice one months rent. So this disreputable collection company just tacked on an extra $2,936 just to make a massive profit. The original default was March 2009, the debt collection agency reported it as an account opened on 3/1/2010 a year later.
Lexington Law fought this inaccurate report and it was removed from my credit report early in 2013. I have since reviewed my credit report and found that the disreputable collection agency National Credit System out of Atlanta Ga has re-reported it with a new date of 5/11/2013 thus as I understand it re-aging it. So now there are two issues, the amount owed is incorrect even if hit had not been paid off, but since it has been paid off it is totally incorrect, and they have reported it as a new debt with a new date that it was opened.
It seems as though I have to keep getting this incorrect information off my report even after successfully fighting them and having it removed. I’m at risk of being homeless because of this disreputable company trying to abuse the system to fatten their wallets. I can’t buy a home or even rent a place. There are no jobs where I am currently residing, but I have a great offer for another state and in another city. So they are also preventing me from earning a living. Please help me stop this madness?
Thank you in advance
Jay B
Jay – I encourage you to outline all that has happened with National Credit Systems in a complaint to the CFPB. You could file the complaint as a debt collection, or credit reporting issue. If I were in your shoes I would file as a debt collection issue. Here is the CFPB complaint page: https://www.consumerfinance.gov/complaint/
Take care to outline all of the issues and the credit reporting concerns too. It would be great if you posted an update to this comment string with how this all shakes out. Later readers of this page will benefit from your experience.
Were you applying for private or federal loans? Has your daughter taken out an unsub stafford?
Did you do a FAFSA?? What type of school is she going to and have you talked to her financial aid department???
Please help – I’m desperate!
I have a daughter who is a freshman in college and a newborn baby (I started young!). I am $8k short on her tuition and I’m having trouble qualifying for a student loan. My situation: Credit score ranges from 630-650, however, I have 3 accounts in collections most from 5-6 yrs ago (I was a struggling single mom). And somewhat high credit utilization. I have a mortgage of $220k but it’s not on my report as my bank doesn’t report to the agencies ($1500/mo). I also have a car I just purchased but not on my report yet ($10k, $230/mo). I make $65k and my husband makes about the same.
I can’t qualify for student loans I’m assuming for 3 reasons; score, debt/income ratio and accounts in collections ($450, $1800 & $700). What is the best possible way to qualify? And I need to do it fast – I need at least $4k by end of month. I tried to dispute the charges with no luck. Since then, one of the accounts was several years old and now has hit my report as a NEW account in collections!! I’ve received offers to settle but I don’t have enough money. I sent letters trying to get them to agree for a pay for delete for a lesser amount but no response. I think they are all scheduled to come OFF my report within the next 1-2 yrs. Should I just wait it out rather than pay if I really can’t afford these? And can the account that changed dates actually RENEW like this?
Is there other options or courses of action you could recommend? I’m embarrassed to ask my family to cosign for her and there’s really only one who may be able to do so. My husbands credit is about the same as mine.
Any help or advice is appreciated, I really don’t want to break my daughters heart, she is a great student.
Thanks
Julie – I have feedback to offer that centers on the credit reporting and collections, but I am sending this to a friend and infrequent comment contributor to the site who has had years of experience with both debt collection, and working in student aid and financing departments. Her reply, if she is available, will likely come from a more whole frame of reference, which is what you need. Hang tight.
My husband and I are in the process of trying to buy a house. When they pulled up his credit report it showed asset accept for $3,270.00 and liberty acq for $ 208.00. But does not say for who. He had a credit card that cancelled on him either 2002 or 2003. there is nothing else he has incurred . Not even medical bills. My question is is this legal since it has been 9-10 years. We live in Colorado. Also these are judgements and he was never served. How can we proceed to fix this?
Thank You, chris
Chris – The judgments get a brand new credit reporting shelf life. In most instances they will stay on the credit report for 7 years from the date of judgment entry in the court. Can you access your court records on line and see when they were entered? What does the credit report show as the entry date? If you cannot access the court record on line, go to the court house and pull the info. More than credit report calculations, you also want to look at the court record to see what date, address, and who was supposedly served the lawsuit. Post a follow up comment with what you learn. Your options for proceeding to fix this can be impacted by what you have to share.
I had a student loan go into collections in June of 2006. After being harassed by the debt collectors I was able to set up payments through my original creditor, and they would then report the payments to the collection agency. I ran my credit report in April and it showed my collections account as passed due each month. I called my creditor and they explained that the late reporting was due to a timing issue on their end of when they reported the payment to the collection agency. She suggested that I contact the collection agency and make payments directly through them instead to avoid the late reporting. When I called the collection agency several months later to make payments through them, they said that they do not report late payments, but just report that the balance has gone down, so I decided not to make payments through them and look into it further. I realized after I called them that the negative account had been removed from my credit report since 7 years had passed. I have been making steady monthly payments for 7 years and still have a balance due. My fear is that I called them after this 7 year statute of limitations and now they can re-activate the negative account on my credit report. Is that accurate? I was not sure if there was a difference since I have been making payments and have never disputed the charges. Any help would be appreciated.
Erin – The negative credit reporting from the missed payments on the student loan would not reappear.
Student loans only report for 7 years from the date of default. WThe information the creditor gave you was wrong…once you default, the account stays negative until it drops off or the account is paid in full. You might have been sending payments to the creditor but they simply just direct pay them to the CA. Continue making payments until you are paid in full…call every 6 months or so to get current balance. Keep in mind when you defaulted you were charged up to 24% in collection fees plus your interest is still accruing.
I spoke to a rep from T mobile and was told since they sold the debt there’s is nothing they can do to correct the amount. All I got was an I’m sorry, try to make the change with the collection agency. After, I told I have tried and they refer back to T mobile who reported that inaccurate amount in the first place.
Danny – What you are experiencing is the center of recent workshops hosted by both the FTC and CFPB. Debt seller passes on bogus info and data, knows about it, but cannot or will not do the right thing. Debt buyer only has the info given them.
Best thing for you to do is file a complaint with the CFPB under debt collection here. Be very specific with what has occurred. You should see some meaningful responses with a couple weeks (maybe sooner from what I am hearing).
It would be great if you posted an update to this comment string with how things progress from here.
Hi ijust recieved an offer either to pay in full obviously dont have that amount and a settlement amount…. which is better I think the first but does the second one afffect you …plus if I contact them would they settle any lower from what they offer for the settlement amount?
liza – Depending on the situation, and your goal, settling will make the most sense. In order for you to have received a written offer to settle you would already have to be behind with payments. This would mean your credit report is already being harmed. If the offer to settle is from your original lender, and you are not yet considered 6 months late, settling now will prevent a charge off and further damage to your credit. If the offer is from a debt collector and you are passed 6 months delinquent, settling or paying in full is not going to make much difference to your credit score, so saving money in the settlement makes the most sense.
I hope I addressed your question. If there is more to the situation post additional info in a comment reply.
I have an account in collections that I have disputed 2 times about the inaccuracy of the debt owed to oc. It’s a cell phone debt. Oc is over charging me $150 for early termination, however, according to their terms agreements, the fee should be $50 for canceling 30 days prior to end of contract. I sent a copy of terms highlighting the fees to both cra and debt buyer, only to have that ignored and cra sending me email that amount is being reported as correct, verified, according to cra. I contacted Tmobile, oc, and finally someone said, “oh you’re right the fee is $50.” I’m in the process of paying off my debts, but up until now debt buyer would claim that if I paid less that’s settling and not paid in full. What can I do about this? I’m requesting a copy from oc stating the actual amount due. Debt buyer still reporting those extra $150 on my credit report. Thanks in advanced.
Danny – Get the amount owed straightened out first. If the account went to collection (assigned or sold) the account getting to that stage is what causes the credit damage. Whether you settle collections for less or pay it off in full, is not of much consequence – the damage was already done.
Having a single account like this show negative on your credit is debilitating to your credit score, but that impact would be short lived compared to having multiple accounts in collections. How many collection accounts do you have on your credit report?
I have two. one already paid, it was in house agency collections and oc was the one reporting to cra. How long should I expect to see the update for this one?
On the cell phone debt, oc has agreed to change the amount I owe and they said they will get my account from debt seller. Can this really be done? I thought once account is sold to a debt buyer, the oc has no say on account anymore. Thank you.
If the original creditor collection account you resolved was recent, it can take up to 60 days for the updates to hit your credit reports. If it has already been longer than that, time to get proactive and get that corrected.
Original creditors can recall accounts if there are provisions for that in the purchase and sale. It is not common, but can and does happen when there are good reasons. Stay on top of them.
I have a debt collection agency trying to collect a 13 year old debt. I did credit repair in 2011 and it should have been removed from my credit report. Is it still legal for them to collect this debt?
laura – Are you receiving collection phone calls and letters? Is the account at issue on your credit report right now? If it is, who is the debt collector reporting it?
A debt can go unpaid for 13 years, but it does not legally go away. But it should not appear on your credit report if a payment on the debt has not occurred for that long.
Michael Bovee: You said a debt can go unpaid for 13 years, but it does not legally go away. So how can it legally go away?
Bankruptcy legally eliminates unpaid and unsecured consumer debts.
Once a debt is passed your states SOL to legitimately sue, and the account drops from your credit reports due to age, the debt, while not legally eliminated, is the epitome of dead for the informed consumer.
Paying on such debts is then a matter of personal choice.
Dear Michael,
I had a 2002 department store acct of 5k which was being paid on consistently while I was gainfully employed through 2010. With 3 lay offs since then and 275. a week unemployment, I lost my home in Feb. 2014. I requested to reduce my 85./month payment to $35. This was the only creditor that refused to work with me. I stopped paying. They sold the account to Portfolio Recovery and now it is with LVNV Funding. Their attorney put a judgement on this and I went to court where the attorney firm agreed by three way phone conference to work with me personally to discuss negotiation and payment plan. They ignored my call and e-mail 2 days later and now they want a FACT SHEET with my payroll stubs, car, etc. I have composed an “Opposition to Summary Judgement”. Yes, I’m considering a BK 7 but don’t have the filing and attorney fee at the moment.
Advice? Should I just send a good faith check for $50. to the attorney’s?.
Note: I am now doing much better with a new job, smaller apartment, and will next save for the secured credit card to try to rebuild score. Meantime this is a nightmare with the attorneys from LVNV. Very old debt. I spoke by phone with them in May to explain my situation, and with the attorneys request in June to negotiate, they are refusing thus far..
Thank you.
I would not look at rebuilding any credit yet until you know whether you will file chapter 7. If you do file for bankruptcy you would include all of your unsecured accounts. It sounds like you are making smaller monthly payments to them still? If you are, your attorney would likely suggest you stop making those payments. You could probably save up to file bankruptcy much quicker with the extra money each month.
How long ago did they get the judgment?
So then my best bet is to wait till jan 2014 and run my credit report and dispute any incorrect dates, then another year and a half they aren’t able to report to my credit any longer and I can start rebuilding my credit and they eventually fall off and wont be seen when my credit is ran by lenders? Or do they just fall off my credit report right at the 7.5 mark? Also what if I were to get married? Can any collectors come after my husband at that point?
2014 – Waiting until the SOL expires in order to dispute any collection account that is reporting a newer date of last activity than the original creditor will keep you from waking a collection in hibernation. If you are contacted about the debt before then, especially if you receive a collection letter from an attorney, then that would change things a bit. Post an update here if that happens.
2015 – all negative credit report entries related to accounts that have not been paid for 7.5 years would age off. You should check to make sure they do though, and if not get that corrected.
You can start to rebuild your credit score and improve your credit report profile by opening up a secured card, or even get approved for a low limit unsecured credit card, but wait until after the SOL expires for this step too. Collectors do flag accounts to apply new collection efforts if they see recent credit application activity.
After the SOL, there is no legitimate risk to your new husband. It would be really rare for your husband to be legally pulled into collecting an old debt in the courts. There are good arguments for that, even in community property states, so post an update if that were to happen.
Sounds like you are moving on with your life in some positive ways. Congrats!
Perfect thank you for all of your help 🙂
Ok so I have another question after talking with my boyfriend. The SOL passed in 2011, wouldnt my debt already have hit the SOL from the previous law or 3 years? I would have already gone 3 years, does it not still apply to me from then? Or do I fall under the new law now since I didnt contact then before the law passed?
I am fairly certain there was no grandfather clause for the date of last activity for accounts already delinquent 3 years.
So I have to wait until after the SOL to get married? Or I should be fine since the debt was before our marriage.
Jennifer – You definitely do not have to wait to get married!
So I have some credit card accounts in collection. It’s been about 6 years. Will they fall off my credit report at the 7 year mark? Should I pay on them or let them fall off?
They should drop from your credit reports no later than 7 and a half years from when you first missed payments.
Before I offer any feedback about paying them or not, I have some questions:
What state do you live in?
When you say it’s been 6 years, do you mean 6 years since you made any payment (I do not want to assume)?
Are there debt collectors showing on your credit reports as well as your original credit card banks?
Do your credit reports show that some of the banks negative reporting are set to fall off on a date earlier than any debt collectors reporting for the same account?
I live in Texas. It’s been about 6 years since any payment. And I do have 1 new card (up to date). Trying to fix my credit. But I don’t know if paying those on collections will help much or let them fall off.
You cannot legitimately be sued for collections on these debts in Texas after 4 years. You are in the drivers seat if you wanted to negotiate settlements or pay on these old accounts. But if credit reports and scores are your main concerns for resolving the debts I wouldn’t. It may actually be counterproductive (unless you are aiming at home loan approval between now and the accounts getting dropped).
I just had a firm contact me about a bill through T-mobile that is from 2003, claiming rights to sue me. They say it is out of Idaho, but the account was opened in Utah. How do I handle this and can they come after me….11 years later?
Can you post the name of the collection agency calling you on the old debt? Also post whether or not you see them, or any other debt collector showing up for this account on your credit reports.
The name of the agency is R & J Firm. Nothing is showing on my credit report of it. They claimed they sent a demand letter and aren’t willing to work with me any further…that it needs to be paid in full. I told them I had not ever received a demand letter and that they need to send me documentation of such bill. He claimed they could email me the paperwork, but I have yet to receive anything.
I’m sorry..the agency name is R & J Consulting Firm.
The same thing just happened to me a few weeks ago! I live in Texas and there’s nothing on my report showing the “law firm’s” name. And it’s a different name everything they call me. Total Scam – and they had my social as well.
I have researched this company and it appears to be a scam. They had my SSN. How should I deal with this?
I would first consult with an experienced consumer law attorney whose practice focuses on debt collection violations (often referred to as FDCPA violations). You can typically talk to this type of attorney at no cost, and many take on your file without charge to you (if they are pursuing collectors who step over the line while collecting, and not credit reporting).
Post the name of a nearby city and I will send you contact details for any lawyers I find in the area.
Ijusy want to say even after the sol midland collection brought a lawsuit against me i guess they were hoping i wouldnt show up and they would win a judgement against me if i didn,t show up they would win I went to court and they didn,t show up. I guess they were just trying to use the court system to collect even tho they didnt have a right to sue the judge dismissed the case so even tho they know its past the sol they still came after me
I think I’m getting your response to someone else. I’m asking about my collection accounts it’s been 6 years since my last payment. I live in Texas and I do plan to buy a home just not any time soon maybe like in 3 years. What would be my best way to go. Pay them, let them fall off at the 7 year mark? I do have new credit up to date. But my score is not going up.
If it were me Christina, I would let them drop off your credit. After they drop off look at adding one other unsecured account.
Do you have any positive credit beside the one newer account reporting (car loan you paid off in the past, student loans, other credit cards you paid but closed)?
Michael –
you seem to be so helpful. I am in PA I had some credit cards go in default when I lost my job several years ago. Collection companies do call me on a regular basis. I just pulled my credit and most of the credit cards are showing as charge offs and most show that the account is schedule to continue on record until 2016 – I am not looking to get a mortgage (I currently have one in good standing) but may need a car in the near future (before 2016). I am looking to clean up my credit and bring up my score. After losing my job I got a divorce as well all credit card accounts were in my name solely. I have two questions…. 1. do I sit tight and let them fall off or do I need to make payment arrangments with these companies in order to bring my score up? and 2. can any of these companies sue me at this point or put liens on my home?
Thanks!
If the collections are scheduled to come off your credit reports in 2016, you would have stopped paying sometime in 2008/2009. The SOL to sue on credit card debts in Pennsylvania is 4 years, so you are passed that.
Add up all of the unpaid bills. What is half of that?
I will have more to say about repairing your credit after you answer that. I want to include the costs of certain steps you can take, with the time these collections have to still hold you back credit wise.
If I add them up and divide in half it would be $11,000.
Thanks. Let’s assume you settle for less that half, as negotiating with debt collectors for the best savings is often better when you and they know they lost the “we can sue” leverage. So… say 25 percent-ish.
If you were to gather up the cash to settle for around 6 grand now, and then have to wait for the updates to your credit reports to show zero balance (a few months), and then wait for those settled debts to season and help you (a few to 12 or more months depending on what else is on your credit), you are close to the charged off accounts, and the debt collectors falling off. So you then go out a purchase a new car (if that were the goal), and get a rate that may not be the lowest available, I think you end up paying quite a premium for that car, for what could amount to maybe meeting your goal several months to a year early.
You could take that 6 to 11 thousand today and get a great dependable used car. Drive it for however long, but into 2016, and trade it in.
What are you inclined to do?
If settling is motivated by anything more than your credit reports, post what those reasons are. From a credit score to get better financing on a vehicle angle, I would wait out the negatives being taken off your credit from age if it were me.
I don’t really have the $6- 11k to negotiate with them – I am a single mom with not a lot of free cash on hand. I just want to make sure that I can raise my credit score over the next several years as I have not had bad credit and collections before so it just bothers me. I didn’t know what the best way to do that. I can wait out the car for as long as possible. I really appreciate your help.
In that case, unless dependable transportation becomes a matter of keeping food on the table, I would wait for the collections to fall off your credit reports.
Hello, I have 10+ year old collections on my credit and it looks like every few years a different collection agency just buy my debt so when u say let them fall off after 7.5 how do u legally get them permanently removed? I
I can offer you some helpful feedback to do just that. Can you tell me what the deb collectors names are that are still showing up on your credit reports for debts that old?
I have a medical debt that was placed on my credit in 2011. I have paid towards it on and off over the last 4 years. It says on my credit that it’ll be off my report in 7/2016. I want to buy a home within the next year. Should I let this fall off next year or should I pay it off? They offered to make a settlement of $1,400 verses the $2,100 I owe….I don’t know what to do. Is it a waste of money to pay them?
Many people are finding home loans are not able to clear the final approval until they pay off old collections like the one you have. Settling now for the savings could make sense if your goal is to get a home loan before the medical bill is scheduled to drop from your credit reports.
Thank you. One more question, if I wait until the debt falls off to apply for a mortgage, will the debt be removed on my credit on the date it states on my report and look like it was never there? The original debt is from 2009 and the collection was filed in 2011. Thank you.
The debt may still appear in the background of your credit files, but generally not on your credit reports for those who look to screen you for credit approval.
I do have a car loan paid off and school loans that are all in good standing. How soon will the collection accounts fall off? Last payment was March 2008. And when will I see my credit score go up?
Look for collections to start dropping off in March of 2015, but be ready for them to stay of for 6 more months, so as late as September 2015.
Your credit scores are a moving target. Your score gets calculated on many data points. Old collections are just part of the formula used. The older the collections, the less sting to your credit scores. After 2 years of accounts showing as collections on your credit reports, they lose potency. After the accounts fall off next year, I would not expect a huge jump in credit scores, but perhaps a bump. By how much I cannot say, as there are just too many variables.
Other than staying on point with my current accounts what else can I do do get my score higher?
I would have to be looking at your reports to offer up actionable feedback. I no longer offer paid services.
Some nonprofit credit counseling companies will offer live credit report reviews. You might try reaching one at 800-939-8357, and press option 1. The call is free, and you may pick up some useful tips to increase your scores over the next year. You are already ahead of the game by preparing to purchase a home this far in advance.
Hi I have a question regarding the SOL
I have a delinquent debt with capital one, and my Equifax has the SOL age date as 7/2014 Transunion is showing 9/2014. When should I expect my credit report to update no longer showing this.
Are you referring to when Equifax and TransUnion are listing the month the Capital One account will fall off your credit? With the Equifax July drop off date gone by, is it still appearing on their report? Are you relying on a third party version of your credit reports with these bureaus, or looking at the ones they provide direct to you?
i have a collection from a hospital that is located in missouri but i live in kansas. kansas debt sol is 6 years for a written contract. missouri is 10. which one applies here. also, this debt was back in 2007, was reported by credit collection company in 2008. its been more then 6 years and its still on my report. how can i find out which apply?
i just looked up the location of the collection agency that has my debt, they are in WILMINGTON, DE, would i have to go by that states laws for sol?
The CA state SOL has absolutely NO affect on this at all.
There are more than one SOL in play here and unfortunately when it comes to medical debt they can use the long arm statute to sue you in the state where you accrued the debt. So the short answer is that the SOL that applies is the state in which they sue you. If they sue you in KS where you are now the SOL would be 6 years. If they sue you in MO where the debt and the provider are located the SOL is 10 years.
As to the reporting: the SOL for reporting is 7 years from the date of default so if the medical debt was incurred in 2007 then it falls off this year. Much depends on WHEN in 2007 you saw the provider and incurred the bill. If that date has already passed I would dispute the CA trade line on the credit reports as obsolete and request deletion. DO NOT use the online dispute system send a CMRR letter to all 3 credit bureaus to dispute it.
Medical bill from November 2009, office stated in collection, never received anything.
Filed bankruptcy 5 years ago, ( not sure if this was in there or not), now they want money. Out of work at this time, how do I handle?? In Maryland.
Call your attorney or look up your bankruptcy and see if the debt was included. If it was, post an update with that info and also with who the collection agency is that is now trying to collect.
Michael,
This is the only negative thing on my Transunion report (I haven’t checked my other two yet)-they are trying to get a hold of me as of last week. This was in Florida (I now live in NC)…what is the SOL for this debt?
Thank you for your time
REGIONAL ACC
Auto
Apr 20, 2007
Closed
5 Missed Payments
$0
Account Details
Last Reported
Nov 01, 2009
Creditor Name
REGIONAL ACC
Account Type
Automobile
Account Status
Closed – Paid
Opened Date
Apr 20, 2007
Closed Date
Nov 01, 2009
Individual
Balance
$0
Highest Balance
$19,139
Payment Status
Current
Worst Payment Status
Late 60 Days
Date of Last Payment
Nov 27, 2009
Amount Past Due
$0
Times 30/60/90 Days Late
4/1/0
Remarks
Closed
48 Month Payment History
2009 OK OK 30 30 60 OK OK OK OK OK
2008 OK OK OK OK OK OK OK OK OK OK OK 30
2007 30
J F M A M J J A S O N D
30 Days Late: March 2009, April 2009, December 2008, December 2007
60
60 Days Late: May 2009
Creditor Contact Details
REGIONAL ACCEPTANCE CORP
33859 US HWY 19N
PALM HARBOR, FL
34684
(727) 781-1992
Dispute Details
Michael,
I just checked Experian and it shows the same info for Regional except last reported 12/2011 and it looks like that is when they are showing the closed date on that report.
How long have you been in North Carolina?
I have been in NC since Jan. of 2009
The SOL for negatives on your credit report is 7 to 7.5 years. When did you make the final payment? Did you complete all payments?
AND…this vehicle was repo’d either the very end of 2008 or the first month of 2009 yet Experian and Transunion both show that I was 120 days late March-June 2009 but I no longer had the vehicle…in fact I had already bought another car and moved Dec 2008 to NC ….so I am not quite sure what is going on there??
What it looks like, based on the info I have to go on… You had the repo, the car fetched whatever it did at auction, and there was a deficiency balance. That balance is now being collected by a debt collector not associated with the original loan.
The SOL to sue is passed (at least legitimately), but if sued, your defense would put this to rest quickly.
That is the collections aspect.
The credit reporting aspect is that this should age off of your credit reports early/mid 2016. You will want to monitor your credit and make sure that it does. If not, you dispute it off. And if that does not work, post an update and I can help from there.
Do you have any major finance needs between now and 2016?
Thank you for the information…no, I do not have any finance needs between now and then (major or minor).
I also have two federal tax liens that I settled thru JK Harris two years ago that are on my report (public record), but I believe they are going to come off soon as long as they are not re-filed…once those two items fall off and the Auto thing falls off my report will be great (minus the fact that I do not have a good grade in credit longevity, but that too will get better with time)…Equifax does not show the two public records, but Trans Union and Experian do and all three show the Auto one…my scores right now are 669 (Experian), 667 (Equifax) and 683 (Trans Union) so I think I will be good to go in another year or so…
Thanks again for all of your information and advice-have a great weekend 🙂
Michael,
Do you think I should go a head and send a cease all communications with me and this address letter to Regional Acceptance Group?
If I had no intention or reason for settling the debt, and I was passed the point for a legitimate collection suit to be filed, I would send a cease communication letter in order to stop collection calls and mailed notices.