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.
Hi Michael –
Just wanted to reach out to get some advice on improving my credit score and resolving accounts on my credit report. I am currently in school, and will eventually have to apply for student loans, so I want to be able to make sure that I am approved. I also want to be able to open a credit card so that I can work on building up my credit score. Right now it is 613. I have heard that secured credit cards are good for building credit when one has a bad score.
Some background information – I lived in Illinois during the time that all the accounts on my credit record were opened. I now live in Georgia, and have lived here for the past year and a half. So I’m not sure which SOL will apply to me.
I recently received my credit report from Equifax. On it there are several accounts that have been charged off. I’m not really sure what the best option for me is. Do I wait until these accounts “fall off” my record? Or do I pay these off? What are the pros and cons of each? I will list below the accounts, and or collection agencies, and dates. How long will each take to fall off?
Collection Agency Accounts
Harris & Harris LTD
Collection Reported: 07/2014
Assigned: 10/2013
Client: People’s Gas
Amount – $966
Date of 1st Delinquency: 09/2013
Balance as of 07/2014: $980
Status as of 07/2014 – Unpaid
Cavalry Portfolio Services
Collection Reported: 06/2015
Assigned: 06/2013
Client: FIA Card Services
Amount – $1891
Date of 1st Delinquency: 02/2011
Balance as of 06/215: $1891
Status as of 06/2015 – Unpaid
I.C. System, Inc.
Collection Reported: 03/2015
Assigned: 01/2014
Client: RCN
Amount: $765
Date of 1st Delinquency: 04/2010
Status as of 03/2015 – Unpaid
Credit Account Information
Midland Funding LLC ( I am not sure what this is for?)
Date Opened: 06/2011
Balance Amount: $467
Date of 1st Delinquency: 07/2009
Date Maj. Del. 1st Rptd: 08/2011
Status – Collection Account
Shell/CBNA
Date Opened: 06/2009
Balance Amount: $0
Date of 1st Delinquency: 08/2009
Date Maj. Del. 1st Rptd: 02/2010
Status – Charge Off
No Charge Off Amount Listed
Bank of America
Date Opened: 12/2007
Balance Amount: $0
Date of Last Payment: 12/2010
Date of 1st Delinquency: 02/2011
Date Maj. Del. 1st Rptd: 07/2011
Status – Charge Off
Charge off Amount: $1891
People’s Gas
Date Opened: 09/2012
Balance Amount: $0
Date of 1st Delinquency: 09/2012
Date Maj. Del. 1st Rptd: 04/2014
Status – Charge Off
Charge off Amount – $980
After seeing the accounts and details of such, what do you advise I do? I am also not sure if some of the accounts that are listed as charge off are the ones appearing under the collection agency accounts. Please advise. Thank you so much.
Were you sued on any of these accounts?
How much money would you be able to pull together in order to settle all of the debts? Can you raise half of the balances owed in a month or three?
Have you reached out to any of the debt collectors?
Have you applied for any credit, rental, or anything that requires a hard credit pull?
Have any of the collectors reached you at your current address or phone number?
Post your answers in reply, as your answers will impact my feedback.
Michael –
I replied last night but for some reason it’s not showing up, so I’ll reply again.
Thanks for your quick response.
To answer your questions-
No, I was never sued for any of these debts.
I am not currently working, so it would take me a big chunk of time to save up the money to pay half or in full. I was thinking maybe my best bet would be to consolidate the debt and do a payment plan?
I haven’t reached out to any of the debt collectors.
I did apply for a credit card about 2 months ago and was denied… Which caused me to request my credit report. And that’s when I saw all these debts on my report…. It had been years since the last time I checked.
No collector has attempted to contact me at my new address or at my current phone number (which I have had for the past 3 to 4 years)
I hope this helps and clarifies so that you can advise me on the best route to take. Thanks again.
If settling the collection accounts means waiting a long time to save up the money you will need, consider sitting back to wait out the statute of limitations on any account that is close to being 6 years old since your last payment. Once you do that, it is only another year to year and one half until those collections fall off your credit due to age.
I would not apply for credit again until the accounts have passed the SOL to sue you and perhaps wait until after the credit reports are clear.
I would in no way entertain debt consolidation where you send a small amount of money to these debts until paid.
1. You do not have a job.
2. You start the SOL to sue you all over again in most instances.
You need patience if you do not have the money to expedite the process for clearing up the debt.
Hi Michael-
I have an old debt reported on my credit report from Sept 2009 with Bonneville Collections. I never received any documentation on this debt but a few phone calls back in 2009. It was for a electric bill in a place I did not live. I tried to reason with them but figured it was such little money and I was stupid at the time so I just let it go. I am now just tired of seeing on there and started looking up how to dispute it. I live in Oregon and the SOL is 6 years. I am not sure if that is from the date reported or how that works. I am not even sure it matters since its for $150. Should I try to dispute it at this point and wake a sleepy creditor or just let it go? I did just try and refinance a student loan with a super selective loaner and it was denied because they have an auto filter to not loan to anyone with collections on their report.
Account #1
$154
Balance
10 PORTLAND GENERAL ELECTRIC
Original Creditor
$130
High Balance
Sep 16, 2009
Opened Date
Oct 05, 2011
Last Reported
Individual
Responsibility
Thanks,
Matt
The 6 year SOL you are talking about in Oregon is for collecting in the courts, not for credit reporting. The credit reporting SOL limit is generally going to be 7 and one half years from the missed payment date (there are limited exceptions).
If it were me I would dispute the debt as not mine if it never was to begin with. Send your disputes in writing return receipt requested. If the erroneous collection items remain after your dispute is investigated, post an update in this comment thread and lets go from there.
During the infamous Wells Fargo Loan Mod program to make a LONG story short, after being told for 6 months that a modification should be approved “any day now” we were suddenly denied a modification via a FEDEX letter. The calls from the Wells Mod analyst suddenly went cold and we could no longer reach them and without giving us a chance to make payments to catch up they immediately charged off our HELOC which just went 120 days old. Despite us begging for the opportunity to catch it up, they demanded immediate payment in full, which was not possible. They did however accept LOW payoff and discharged the debt. This debt is reported on our Credit Report as “Account paid for less than full balance, Paid charge off ”
Since then we both found new jobs and have TOTALLY recovered. We have been trying to obtain financing since but despite the fact we have paid off all our debts except of a car lease and our mortgage, and have 24 months of PERFECT payment history….we keep getting denied conventional mortage financing. Our scores on Equifax is 685 but ends up being around 650 through the banks calculations.
While NO ONE would tell us WHY we continue to be turned down flat…I FINALLY believe that I have found out why through some research. From what I can deduce, the Fannie Mae rules are that we need to have 3 YEARS between the HELOC default and the application. Even though it does NOT SAY FORECLOSURE, a bank official told me that THEY consider it a FORECLOSURE action and therefore we must wait for 3 years to pass from that Charge Off.
QUESTION: What date do I use to start the clock ticking from that Charge Off?
Its amazing that NO ONE has been able to give me this information….the banks simply turn you down, but DO NOT tell you why. It has been terribly disheartening going to multiple lenders the last 6 months, with all of them telling us they should be able to do a new mortgage only to be turned down then IGNORED not giving us any further info as to why,.
If you can assist in this I would appreciate it. We really want to get on with our life but until we can obtain a conventional loan again we are basically stalemated in our home and cannot move.
Thanks!
What was the date that Wells Fargo shows the charge off? What was the date you paid the settlement amount?
The three years should be from the charge off entry, but I have seen some other scenarios play out.
The 3 year post short sale, foreclosure, less than full balance payoff guideline for Fannie and Freddie investing in loans is common knowledge. I am not surprised any of the loan officers did not tell you that. Many are just form fillers, not really debt and credit experts (but there are some awesome exceptions).
The credit report has “CO’ for the months of 2012 APR, MAY, JUNE, JULY. Date of LAST PAYMENT SAYS 06\2012. Date REPORTED says 06/30/2012 not sure what that means. Date of FIRST DELINQUENCY says 06/2011.
The check that I wrote them for settlement cleared our account July of 2012. They later discharged the lien.
We never would have gone this far behind if it were not for the Loan Mod Analyst saying it would “make our case better”. Despite my better judgement I did that, as at the time we were desperate having been out of work for nearly a year. Ironically all that we wanted from Wells was to refi our 1st and Heloc to the then current 3.5% interest rate, from our then 6.8% mortgage and 18% HELOC. Had they done ONLY that we would have been solvent, but instead they did what to me was just plain stupidity.
As far as where we finally got the info about Fanny, it was from a third party Mortgage company through Quicken loans. Non of the major banks would even bother responding to my inquiries to tell me exactly why we were turned down.
Thanks for all your help….you have been an immense help in the past, and if you can help with this final piece of the puzzle we can then plan for this instead of flying in the dark.
Also, would we in ADDITION to the 36 months from the HELOC Chargeoff and subsequent payment, would we also need to be a full 36 months of ON TIME mortgage payments? The reason I ask is because our main mortgage took an extra 5 months to get back on track. We were finally on time again beginning JANUARY 2013. So we are 29 months of perfect payment history on our First Mortgage right now. Not sure if that would affect the Loan App.
Thanks again
I doubt the 29 months of on time payments to your first mortgage will be the 36 months for Fannie and Freddie to purchase the loan issue you already are aware of. I will look into it though.
It sounds like the 3 years will be up next month, or August possibly.
Loan officers at banks are more likely to be form fillers and not all that knowledgeable about debt and credit issues, or perhaps less inclined to go the extra mile to help people understand where they are at with loan approval issues. Mortgage brokers or independents are likelier to be able to help people with out of the box strategies and offer more detailed feedback. That is my experience working in this space anyway.
Hi Michael-
I was a major screw up when I went off to college back in 2004 and racked up quite a bit of credit card debt. I paid off a few but most were charged off and have now fallen off my credit report (which is now full of student loans and medical bills in collection). The past few weeks I’ve been receiving calls from a courier/collection agency, PDI, that is trying to deliver “court documents” to me. They’ve called my phone, my husband’s my mother’s, my mother-in-law’s, my sister-in-laws and others too probably. When I look at my credit report, there is only one credit card company on there as a charge off and says it was sent to collections, but there are no collection agencies on my report (other than medical, which is not this PDI). I’m not sure what to do, but it is horribly embarrassing. If I have nothing on my credit report for this company, what can be done?
Read through this article about filing a debt collection complaint with the CFPB, and then do just that.
It is possible that this is a debt collection scam too. Read this post before filing the CFPB complaint.
I would then connect with an experienced FDCPA consumer law attorney in your state. If you post the name of a nearby larger city I can email you contact information to any I know of in the area.
I live in Kansas on Experian credit report it shows I have a collection. It also says that I haven’t had a collection in 9 years. My question is should this have dropped off my report after 71/2 years?
It sure sounds like it from what little you shared. If the account has not been paid for more than seven and one half years, it should not be there.
I would dispute it off.
Hi Michael…
By 2000, I had amassed about $30,000 in credit card debt and had about $5,000 remaining on my student loan payments. In late 2000, I went to “Siberia” for nearly 15 years, and made no payments on those debts. During that time I received no mail and no phone calls, so I don’t know which creditors/debt collectors (if any) tried to contact me, tried to sue me, or did anything else to try and collect from me. Today, I’m back living in New York. I recently found out that someone trying to collect for the student loan sends a letter to my family’s house about once a month. Other than that, my family doesn’t know which of the other creditors/collectors (if any) sent mail or called over the years. For many years, they simply hung up on strangers who asked about me, and put all my mail in a box in my old room.
After being 100% incommunicado for 15 years, I figured that in addition to the difficulty of putting my personal/work life back together, I would have a very difficult time putting my credit life back together. So yesterday I started researching bankruptcy. After stumbling upon this site and reading hundreds of problems and solutions, I decided to get my credit report. I feared it would look like a war zone, but it is actually a complete blank — no late payments, no judgments/public records, no balances, no debt collections. Nothing!
I just got a job, and I want to open a bank account and perhaps get a credit card at some point. So my questions are as follows:
1) Can any creditor/debt collector sue me at this point? If they do, then do I simply raise the SOL defense?
2) Can they find a way to take a percentage of my wages?
3) If I open a bank account, can they somehow freeze it or otherwise take money from it?
4) Do I need to file for bankruptcy to eliminate these debts that may have “aged off” my credit report, but still technically exist for an eager debt collector waiting for me to pop up on the radar again after 15 years?
5) What about the student loan? It’s not on my credit report, but the monthly letters are still coming — 15 years after I stopped paying. Is it true that the government can take money out of my future income tax refunds to pay this debt?
Any thoughts would be appreciated… Thanks
1. At this point the time barred SOL defense would apply to anything other than federally backed student loans (they do not really expire like that).
2. There is no legitimate path to garnish your wages if they do not already have a judgment against you.
3. Same thing applies to any attempt to levy your bank account. There must be an underlying judgment for them to take that action.
4. I would not file bankruptcy. Those old debts are out of the picture (unless the student loan was federal). While a debt collector can certainly still write and call, there is nothing they can do to your credit or make efforts at legal collection. You can put a stop to any collection efforts if you like (not a federal student loan though).
5. Bingo. The government has the ability to collect from you in more ways, and for much longer, than private lenders do. Your tax return can be intercepted, and other government benefits too. But you also have options to get set up with repayment of that loan. You may want to start looking into that as soon as possible.
Hi,
I’m so happy to have found this website.
My husband and I would like to purchase a home. On my husband’s credit report there is a charge off from Chase Home Finance. The date of the charge off was 5/23/2011. Balance $70,701, high balance $75.650, past due $14,160. A mortgage officer advised us to file a dispute since the property was forclosed upon by the city we live in for past due taxes and is now owned by the county landbank. his Transunion score is 671/605, Experian 616/611 according to the report the officer pulled and showed me. All indicate too many inquiries. A report regarding the ‘dispute’ we received from TransUnion indicates that the “estimated monthand year that this item will be removed is 12/2015. The letter from Equifax didn’t say anything of the sort. Can you advise us what, if anything we can do, if the charge off will indeed be removed in 12/2015, and the likelihood of him being able to get a mortgage, and if so when? Since I am an under employed teacher working two part time jobs, and have over $100,000 in student loan debt (which is reporting fine-I haven’t begun making payments yet) I don’t suspect me and my income and credit to be much help in our goal to get a mortgage.
Thank you in advance for your help.
You will want to wait for the item to fall off his credit reports in December.
Generally speaking, you will want a 620 FICO score or higher to qualify for FHA underwriting. There are limited instances where you can qualify with a lower score. I have an article up about fixing credit to buy a home.
Thanks, I will look at the article. Another question, why the differences in scores from different agencies?
Each of the credit bureaus developed and uses their own credit reporting platform. Their systems may have some similarities, but there are many differences. Those differences are what leads to their not matching up when the information they have is identical. Now consider the information they have is often not identical and you see more differences.
Also, since only one letter said the Chase Home Finance will be removed in 12/2015-is that truly the case? We live in Michigan, and I thought that these things stayed on for 7 years. Is it different among the credit reporting companies? One mortgage officer told us we’d have to wait 3 years after a foreclosure in order to get a mortgage. WHat is the difference between a charge off versus a foreclosure? Before we left the home we had tried multiple times to contact Chase and work with them to modify our mortgage, but despite sending many forms, multiple times, we were always dealing with a different employee who said we had done things incorrectly. The last time we contacted Chase they told my hisband they didn’t know who owned our mortgage anymore, and to call back in a few months.
When did you last make a payment and/or make regular payment on the Chase home loan at issue?
Did you ever look into whether your loan could be considered for inclusion in Chase’s settlement state and federal regulators?
It is a common practice to be locked out of home loan approval for 3 years after a foreclosure, short sale, etc. There are exceptions though.
I’d be happy to share more specifics with you, but posting it in ‘public’ doesn’t seem right. I don’t actually know if our loan falls into the settlement with state and federal regulators. How do I determine that? This is what the credit report shows:
Opened
01/07
Reported
05/12
High balance
75,650
Reviewed
—
30
4
60
2
90+
33
04/12
……
05/10
Pastdue
14,160
Payment
Profit & loss
Balance
70,701
Last active
05/11
*CX1 *CU1
[Ind]
High limit
—
Install (I9)
Mortgage
(CNV)
Profit and loss writeoff; Closed 05/11
You are welcome to submit a consult request from: https://consumerrecoverynetwork.com/free-debt-consultation/
Those forms all come to me first and it is highly likely it would be me that you speak with.
As far as the mortgage settlements go, I would start off by contacting your states attorney general office and ask for more information about the process. I can talk to you more about that in a consult.
Recently I have been contacted by a collection agency that has an unpaid bill of mine from more than 8 yrs ago. I have never made a payment on this account and it has multiplied 4x the oringal amount. They contact me roughly 4-5 times a week leaving me blank messages. They have told me recently that they have posted a comment on my report as of May 22, 2015 and had also told me about other reports on my credit. In my understanding I am way past the 7.5 yrs sol, are they a loud to be posting on my credit report? Also can they be contacting me for debt that is past the sol?
When a debt passes the SOL to legitimately sue in your state, or for the account to still show on your credit reports, it is still something debt collectors can call and send collection letters about. You can stop the calls and letters by sending them a cease communication letter. Use certified mail return receipt requested. Keep a copy of the letter you send, and the green return card you get back in a safe place. If you hear from the debt collector again, post an update and lets go from there.
If they did post anything new on your credit reports, post an update about that too.
Hi, I have a question I am concerned about my credit report it took me many years to realize or care but I have a lot of medicals bills that I never took care of when I was younger….. I was very irresponsible. I am 30 now and finally I am realizing that this is something I can’t let go anymore. The problem is some have been years maybe 7 plus, majority in Oregon where I am from and some in NYC. So do I pay them if they are probably old now I heard they never really go away some say after a certain amount of time they have to fall off but they are always looming or can be put on a public record? I am worried I don’t even know what is out there. I guess it would be on my credit report right and if so after should I not worry about the old ones I just want to build my credit and pay some off if I have to andget myself in a better place what should I do?
thanks
Do any of the old bills show on your credit reports now?
If they are more than 7 and one half years old, you should not see them on there. If some are not quite that old, it sounds like they should drop off soon.
Can you recall the exact dates you received the medical attention that led to the debts?
They would have to have sued you for the debts to be a matter of public record.
I have a rental company trying to get money out of me for my move out, which of course they over charge for damages that weren’t accurate, but anyway I moved out march 2008 and until this year 2015 I have received 2 letters one back in march and the other May stating if it’s not paid it will go to collections. Can they send it to my credit report after 7 years of no payments. I live in Texas.
If the debt has not appeared on your credit reports up to now, I am skeptical that it would as a result of being sent out to a third party agency for collection.
If the collection item did appear, it sounds like it would be short lived, and maybe only be allowed to legitimately report until November 2015 (based on the dates you shared). Be sure to monitor your credit reports.
I had a student loan debt charge-off taken off my credit history already due to its age of more than 8 yrs. I recently received a collection letter asking payment for the same debt. Would this collection activity re-appear on my credit history? Is it legal or what are my options if it does?
Unpaid student loans are still legally collectable even though they fall off your credit reports from age. If this is a private student loan it is likely that it should not reappear on your credit reports. Some federal student loans can legitimately appear on your credit longer the the 7 and one half year federal limits.
Thank you! Mine is a private loan that I cosigned. Does the California SOL apply on my loan? When you say legally collectable, they can send collection notices but can they sue and obtain a judgment? I appreciate your answers.
Additionally, all these years, I did not receive any sort of judgment notifications at all for this debt(originally from Sally Mae). It fell off my credit report and increasing my scores to 750 or so. I’m planning on purchasing a home within 2-3 years and just concerned that these collection efforts will hinder the loan process. I read here that judgments don’t necessarily show up on credit reports. Is there a place or way I can find out if there’s somehow a judgment against me for this loan? I hardly change addresses so it’s not like they don’t know where I reside.
I cosigned for this loan and I understand the liability aspect. The person who used the loan is working with an attorney for a forbearance and Bankruptcy case .
The SOL for the state you live in is generally what would apply.
If you want to double check whether there was a lawsuit filed and a judgment entered without you knowing, look up your name in the courts for the counties you have lived in. Many courts offer free online access to do this type of search.
Hi Michael,
I have a credit report from Focus receivable management back in 2008 and I get my monthly report from my bank I have notice a trend from them they mark it as closed then it goes off my report my credit score goes up(not by much) then a few months later they have a new credit report again same amount owed but a new date and drops my credit score. Are they allowed to do this? 10-10-2008 is when it was reported. Thanks. Im trying to work on my credit score and I have 3 things on there since I was 18. Trying to save up to pay it off $2400 in collection
Do you know when you last paid on the account Focus Receivable Management is showing up for on your credit reports? If it was more than 7 and one half years ago than Focus should not be on your credit reports.
I would file a credit reporting complaint against Focus Receivable with the CFPB. You can do that here: https://www.consumerfinance.gov/complaint/
Post an update with the outcome of the complaint and lets go from there.
Hi Michael,
It was through time warner and my military orders were suppose to cancel the contract out but I guess I owed them $222. I tried calling Time Warner to pay it but they won’t accept it and I read so many bad reviews about Focus Receivables that they don’t remove off the credit report so I haven’t called them. And I don’t want any harassment calls in the middle of the night living oversea again. I know I have until 10-10-2015 to file but is it still 10-10-2015 since the date just changed to 05-09-15 so new date would be 05-09-22? I have not made any payment. I just want to make sure I am in limits to file this claim before I do and I do not win cause they change the date. I have a printout from when it stated the original date. I checked my credit score and printed out my report then applied for my credit card in Oct. Sorry for the long post and all over the place I just want to get this company out of my life!
Given the additional details you shared, I would definitely start with complaint to the CFPB. And no, the on and off credit reporting with date changes should not be happening.
Be very detailed in your complaint with the CFPB and include that you were active duty. Be clear in the resolution you are seeking is that Focus Receivable be deleted from your credit reports permanently.
Hi Michael,
So I called the company awhile back and finally heard from them I paid in full cause I was just tired of the harassing calls but I was told it will still be in report for 7.5 years that they can not erase it. Is that true I thought if I paid in full it will be deleted. I could be wrong but please let me know. Thank you so much again.
Paying a collection account, whether paying in full or settling for less, results in the same thing. You get an updated credit report that shows the account is resolved. It does not get the account removed from your credit reports.
There are some very rare instances where pay for delete works, but that is not a realistic expectation to have in these scenarios 99% of the time.
Hi Michael,
I have a debt and I haven’t made a payment since 2007 (local credit union on a car loan). I’ve been trying to dispute it to take it off my credit report with Experian and they won’t remove it. This debt is over 7.5 years since the last payment.
So, how do I go about removing this from my credit report?
If the time has passed for this to stay on your credit reports, and your disputes are not resulting in the correct outcome, file a credit reporting complaint against Experian and the credit union with the CFPB.
Be as thorough as possible with the information you give the CFPB. Post an update with how this progresses for you. It could take a few weeks to hear back on your complaint.
I recently applied for a mortgage and received pre approval for new home construction. There is a collection item that is due to be “removed” or fall off in august 2015. does this happen automatically on the first day of the month that it is to be “removed”? The lender advised that they will pull the credit again after the date to be sure it had been removed.
The collection item will not necessarily be removed on the first of the month.
Thank you Michael
If not necessarily on the first, but sometime during that month.correct? who exactly removes the item? if not removed during the month it is scheduled to be removed do I need to contact someone and if so who?
Yes, during the month. If the item is showing as scheduled to be removed, it is the bureaus that will delete it.
If the collection does not come up as scheduled, send the bureau a dispute and demand it be removed immediately. If the collection stays on at that point, file a credit reporting complaint with the CFPB.
Hello Michael. I talked to you before about a junk debt collector putting something on my credit report after 18 years. I write the consumer complaint dept, the attorney generals office in Fl. and Mo. .I wrote Trans Union , Experian and Equifax and it is not on there but the finance company denied me a small $15K loan and even gave me the date in was put on my credit report . Are traditional loans and commercial loans held by the same standards.? Can a 1989 time share debt be used to base a loan on. It was taken off my report in 1997. I don’ get it because I have brought cars , a truck and a house and can’t buy a used commercial truck. I have the info for the attorneys in Missouri you gave me . Thank you
Speak with one of those attorneys and find out what you may be able to do.
Commercial credit does not carry the same protections as consumer credit.
I have been in the process of paying off our debts the past 3 years. My husbands medical bills were so enormous that we were going to file bankruptcy but ended up not doing so because he owns his own business and he would run the risk of losing it. I hope to be rid of debt by the end of this year. I just checked my account through Credit Karma and I show a debt on my credit report that shows the date June 7, 2010, with a new report date of April 3, 2015. This creditor has NEVER contacted me. I am aware that the law in Colorado states that the active date for debt changes when you’ve had contact with the debtor (statue of limitations). How can they update a reporting date if they’ve had no contact with me?? Colorado law says they can no longer legally pursue a debt after 3 years for credit cards. I will not contact them and risk violating the current statue of limitations. What are their rights, and mine? Will this be required to drop off my credit report in 7.5 years or are they extending that by new reporting dates? And how can they have new reporting dates if they’ve had no contact with me. Thank you.
The debt collector should fall off at the same time as the original creditor. This may just have been an “update” to your credit reports by the debt collector, and not an attempt to reage the collection derogatory so that it appears for longer than is permitted. If I read your comment correctly, that is what I think occurred (they did not reage).
Who is the debt collector in question? Some of them have a reputation for fast and loose credit reporting.
You would not reage the SOL to sue by dealing with credit reporting issues. That concern is more about offers to pay, and in most states must be done in writing to reset the SOL, such as in Colorado.
Can a debt collector come back an try to get u after a 13 yr repo
Debts like yours are still collectable after 13 years. But after 13 years, the time limit to sue you will have expired in nearly all states, and the repossession should no longer be appearing on your credit reports.
If this debt turned into a judgment some years ago, you should really be looking at ways to resolve it. If not, paying on the debt will be a matter of personal choice.
Who is the debt collector? Are they calling, writing, reporting?
I have a question. I am in the middle of getting a loan on a house I have a collection showing on my credit report Eufora out of Pheniox AZ. I tried to contact this company for two yrs to get the collection off my report. I have called the number they give on report it answers like the company but no response. I am afraid to dispute it because its 7 yrs in JUNE 2015. I catalo need to pull my loan by May 2015. Should I dispute it?
When you disputed the credit report in the past, was it only with Eufora directly, or had you sent disputes to the credit reporting agencies?
I actually didn’t dispute it in the past. I was just learning how to fix my credit and clear this stuff up recently. I always just tried to call and pay if they could prove it. I did a ton of research and found out about the dispute process but was also told it updates if they have proof. This account was so long ago I honestly don’t remember if its a legit. sadly! It was only with Eufora. I don’t remember any people even calling to collect either. No paperwork like I have had with other collections. Does this help?
Yes, thanks. I would dispute it with all credit reporting agencies as “not mine” if it were me. Eufora is/was more of a high fee secured card advertised as a credit builder. I do not think they were very good at it.
Hello:
I’m hoping you can help me navigate a situation. There is a HELOC (in my husband’s name only) that was sold off by BOA while we had been in the process of negotiating a short sale offer with our lender at the time who was Countrywide (which became BOA).
Twice we had an attorney contact the company who took on the HELOC (Real time Resolutions) and they never responded with any information about the debt. My understanding of the law is that if they don’t respond in 30 days that the debt can’t be listed on the credit report? Is that accurate?
In 2013 I submitted a dispute with Experian about the debt. They reported that it would report to a positive by 2/2015. Based on that dispute response I used the consumer finance protection bureau to contact all three credit bureaus to have the item deleted from my husband’s credit file. Each credit bureau did so. However after two weeks, Equifax put the item back on his credit again. Causing his credit score to dip 85 points.
I submitted another dispute with the CFPB. So far nothing has changed as I am monitoring his credit.
I know the SOL on this debt has past. We are in NV. However I am unclear as to when this debt will fall off his credit and no longer count against him as we are trying to purchase a home.
I am unsure of the exact date that the first payment was not made on this account but I believe it was May 2008.
However I had been using the date that original dispute I filed returned to me, which was 2/2015 as a status change date. So if the last payment was to be due 5/2008 (as a document I have from Real Time shows) does that mean that the 7 years is May 2008?
Who are the powers that be that remove an account once it has reached the appropriate time frame? Am I relying on Equifax to remove this account? Or the creditor? Or how exactly does that process happen. Sorry to ramble on. Thanks so very much for your time.
I am not sure what you are asking in regard to a 30 day response deadline and Real Time Resolution not being allowed to appear on your credit reports. Can you tell me more about what your dispute was about?
You said you filed another complaint with the CFPB against Equifax. When did you file that complaint?
You generally count forward 7.5 years from when you stopped payments on an account to determine when it will age off credit reports. If May 2008 is when payments stopped, it could be November this year when this falls off his credit.
You would generally assume the credit bureau will delete from your reports. But Equifax will use dates provided to them by Real Time Resolution, so in essence, it is both of them that impact the deletion. And collectors can report dates that are not accurate, which can delay the credit bureaus deleting old items. You have to stay on top of them.
I forgot the Mortgage was in Ohio. I now live in Floirda.
When was it that you stopped paying on the mortgage? Is this debt left after a short sale or foreclosure?
I foreclosed on the house in 2008 it was owned by citi bank at the time. The house was sold soon after. Not sure how Wilmington Finance could be involved in that.
Unpaid debts and defaulted loans are bought and sold by investors regularly. A debt can be sold multiple times. The new owners should not report to the credit bureaus in a way that would extend how long they stay on your reports, but should report in a way that has their entry dropping off at the same time Citibank does.
Is Citi still on your credit reports? If so, what is the date they are scheduled to drop off?