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.
P.S., per all three of my credit agency reports, there are no other accounts/negative items/collections or unpaid debts showing.
The only odd thing was that one of the debts I settled ($199) was from the same originating creditor and amount but was listed as open with three differing collection agencies. I settled with the agency which actually “owned” the collection account. This multiple entry only showed up on the Transunion report, but not on Equifax or Experian.
Make sure the original creditor and the debt collection agency/debt buyer all are showing a zero balance due. The original lender should show zero already if they sold the debt. Check to see the debt buyer updated your credit reports 60days or so after you paid the settlement agreement.
Sorry for the duplicate! I may have been typing as you were..
I Don’t have any medical debt–but was curious as to how it is classified.
I should add that I am on the road to recovery and do have student loan debt, not a great amount by any means compared to some, less than $15K. I have enrolled in the income based repayment plan offered by the USDE serviced by VSAC and as I was able to certify my lack of income, my required monthly payment is $0 so that account is being reported as paid as agreed and is not in forbearance or deferrment status and is not accruing penalties or extra interest.
My entire credit report consists of the Federal Student Loan (VSAC) in good standing, three small debts which now show as paid as settled ($199 TWC), ($272 DISH) and ($329 BANFIELD PET) with the exception of the one Transunion report showing the ($199 TWC) debt open in the two former collection agencies. This was a Time Warner Cable bill which eventually landed with ERC.. I called TWC and asked which agency had responsibility and they indicated ERC, so I contacted them and settled the debt. It has been reported to TWC and I’ll wait the 60 days and recheck.
My credit score is poor (521-581) depending upon which agency scores it. The only heavy hitter not awake yet is the AZ Utility Bill which is not and never has been reported.
My thought is to scrape together enough cash for a $200 secured credit card and charge a small amount (doctor co-pay, meds, etc) and make monthly payments plus over time to start building positive credit. It’s not just enough to remove the negative. If the AZ Utility bill awakens, I’ll hopefully be able to work with them. Thanks for any insight!
I would take a shot at one of the credit rebuild type of cards that Capital One offers rather than a secured card. I am often miffed at Cap One for collections practices, but they beat out most all other mid to large size credit card issuers when it comes to offering unsecured starter and rebuilding credit cards.
This comment has been removed and re-purposed in a more complete post from Jason about why he was turned down for a Capital One unsecured card, and why he researched and chose to apply for the First Progress secured card to start rebuilding his credit score.
Thanks for the detailed post about First Progress. It will help others who are rebuilding too. I am tempted to break out this comment into a new post. If you are up for it, send me an email with the above comment details, and add in more about your research and your over all situation (so people know more about why you are rebuilding your credit), and I will post it as a new article.
I would be glad to! Just shoot me an email to the address only you can see and I’ll send you some more detailed/personal information to that email address and I’ll compose something this weekend. I don’t want to post my email here where it can be seen publicly!
Thanks Jason! My email address is the same one you get comment notifications from.
I can see your big post. It did not go live because the site settings hold back comments with a link for manual approval. I am going to work on a post with your credit rebuilding review and put it up this weekend. I will send you an email when it goes live.
Sounds good. For some reason, I am not receiving the email notifications, not even in SPAM though. Just link the blog entry here in a reply and I’ll monitor this page manually.
Hi Michael,
I’ve a debt from a utility company in Arizona which was last paid on in March, 2011. I moved to Missouri in 2011 and then to Illinois in 2015. This debt is not showing up on any of my three credit reports (as of Feb 2016) however about 9 months ago I received a mailing in Missouri from a collection agency regarding the debt. I don’t remember if they offered a settlement or not, but I did not respond and tossed the letter. The debt was for an electric company. I had service in my name in Missouri without issue and when I moved to Illinois got a letter of good credit and payment record from them. I am currently cleaning up two small debts (less than $300) on my credit report and have settled with both and they are paid.
My questions are:
Is the SOL for collections based upon Arizona, where the company is based and service was provided or is it based upon my current state of residence. As I understand it, utility service is a “written contract” and so if I had remained in Missouri, the collections SOL would have expired in 2017, but now that I am in IL that is now out to 2021. Is that correct?
Is the collections reporting SOL nearly up for this debt? It thus far has never appeared or been reported. Should it suddenly appear will it remain now for 7.5 years?
Will my settling of these two unrelated small debts suddenly “wake up” this utility company to actively come after me? I have no real property and have been out of work due to medical issues for a year.
Thanks
The date you were considered delinquent is when the 7 and one half year clock starts ticking for the unpaid power bill to drop from your credit. That time frame does not change at all if it somehow shows up next month, whether you pay it or leave things as they are.
The SOL to legitimately sue for a written agreement looks to be 10 years in IL. If you were sued, it would be in IL in my experience. They cannot say they did not know you were not in AZ anymore, so I do not think any filing would happen there by mistake (though that happens).
Updates of newly reported settlements do tend to catch the eye of other debt collectors. If things got quiet, it would be normal to get collection letters and/or phone calls anew.
If you are worried about your efforts to rebuild your credit, and are not sure what to do about the old utility bill, consider doing nothing for the moment. You could save money at every opportunity moving forward so that you are prepared to pay a settlement if the account shows up on your credit, or certainly if collections escalate.
I cover your concern in this video about having to worry that doing the right thing can harm your credit more.
Thank you so much for your response! So that I understand you correctly, no matter if the unpaid utility bill from Arizona (which has never appeared) suddenly appears on my credit report now the clock would have began ticking when I was first considered delinquent in April 2011. So seven and a half years on would be October 2018.
If it appears, that would be the drop-off date in terms of the credit reporting SOL. If it appears and persists after that or appears after that, it must be removed provided nothing has happened to “restart the clock”.
The same holds true for any other collection efforts which might begin or reports appearing as a result of activity in my credit file. I must check to see if the delinquent date is past the reporting and also the actionable SOL.
Sometimes it appears you wake a bunch of monsters when you try to settle a few minor debts; I’m not sure how actively these collection agencies monitor my file, but I worry I might be now at the forefront and have singled myself out.
I’m afraid the fact that I appear to have moved to a more collection-friendly state (Illinois has a 5 year oral, 10 year written/promissory and 5/10 year open ended account SOL.) just might set the dark dogs of collection anew on me again. (AHA he’s moved to a state where we can get him now.!)
I’m not sure what these categories mean-what is a medical bill for example?-
I’m not planning on inquiring about that utility bill, I’ll go no where near it–and I hope that particular dog remains fast asleep in its corner. The fact they’ve now got 4 extra years might stave off a lawsuit for a little while longer. I’ve no assets, equity or income at the moment due to severe illness so I am not the most attractive target, nonetheless I am saving money at every opportunity.
October 2018 it is no matter what. Anything on your credit that would try to make this drag out longer can be disputed and deleted. And on that note, keep good records or chronological notes in case you ever need to refer back to different details.
There is no legitimate was to restart the clock in this situation. The only possible way it drags on is if you are sued and a judgment entered. That would be a new 7 years over the same debt, but on the public record section of your credit reports. You are, of course, not going to allow things to get that far by saving up to settle if/when it proves necessary.
I am not sure what to make of your medical bill question. What is the frame of reference for your use of the word “categories”? Are you looking at your credit report?
Hello Michael,
I had a cell phone account back in 2007 which I paid my last bill and then cancelled service. Now after almost 9 years a collection agency is sending me bills for deactivation charges for that account. I obviously do not have proof or receipts of that time so I am unsure what to do. I may have still been under contract but I did pay my last bill in full and cancelled the same day. I have been rebuilding my credit and it is improving gradually but I am afraid that this new development from nearly 9 years ago will jeopardize my credit. If I don’t pay it will it start affecting my credit? What should I do?
Is there anything on your credit reports about this bogus collection right now? If the account is 9 years in the rear view mirror there should be no reference on your credit,and you should not have to worry about it popping up. If this does show on your credit let me know and we can go from there.
What is the name of the collection agency involved?
The agency’s name is Convergent Outsourcing, Inc. and none of the current credit reports I’ve acquired have indicated the Sprint Account since 2014. Which is when my credit finally started improving.
Hi Michael,
I am doing a report for school and I had to pull my credit report. There is a debt listing that says closed in 2007. It was GE credit, I paid it by settlement for the original amount owed minus the interest. I thought it should have dropped off in 2014, but it shows an information update on January 24, 2016! It also shows closed but shows my payment is current every month from Feb 2014 (when it should have dropped off) to the end of 2015 and not reported for January 2016 yet. I’m not sure what to do! They changed the name of their bank but i still don’t understand why it updated this month or how to remove it. The amount shows zero but it still affects me I think because it shows an account closed by the creditor as still active this month. Please help me understand what to do.
I would dispute this as too old to be on your credit reports. Be clear in your letter to the credit bureaus. Identify all dates and activities from back then and demand the account be deleted.
Keep a copy of you letter and send it certified mail. Let me know what happens when they respond.
Is it just one credit bureau that has your old settled GE Capital account showing (now Synchrony)?
Hi I am intrigued by the information you have provided and have a similar question. So I have an original debt from 2006 to a payday lender that has since aged off my credit report about 6 months to a year ago. Well I received a call from a debt collector today trying to collect on that debt. I am not even sure if the amount they are reporting is correct as the debt is 10 years old. Can they put this back on my credit report and what legal options do I have. I find it funny that now that my credit report is virtually clean and that I am rebuilding my credit this comes back up. Please help if you can?
Thank You!
Norma
You should not see something like this pop up on your credit reports again after it already aged off. If that were to happen post an update and we can go from there.
Debt collectors can still legitimately try to collect from you, but after the SOL for credit reporting has passed, and once the SOL to sue has expired, they are limited to calls and letters. You can put an end to those too. You can send the debt collector a cease communication notice. Be sure you keep a copy of your letter and send certified mail. If you receive any collection calls or letters after that post an update.
Hello Michael,
I have a few debts over 10 years old that have surpassed the SOL and dropped off my credit report. I’m still getting letters from debt collectors though. I just recently received one that is offering to “satisfy in full” if I pay 10% of the balance, which is a really good deal. While researching through the internet I became a little concerned though that paying this old debt might actually do more harm than good. My questions: 1)If I pay the 10% as “satisfied in full” will this then reappear on my credit report? 2) If I pay the 10% as “satisfied in full” will this then affect the other 2 SOL accounts that have also dropped off my credit report? – Thank you,
You do not reset the credit reporting SOL by paying collection accounts such as yours.
You would not impact the other 2 old collections that you are not settling.
What is your motivation for paying the old debt?
Thank you Michael,
Honestly, before it was just a major feeling of moral obligation that I had to pay these debts back. But now, it’s more of a feeling of fear that has me in a panic. I have 3 debts that continue to accruing interest. Even though they do not appear on my credit report anymore I get scared that one day I’m going to get a bill that says I owe 1 million dollars. I feel like it might somehow come back to haunt me one day.
I saw the response you provided to Norma’s inquiry. If I send the collection agency a cease communication notice, on what grounds do I have to stand on, if any? Or do I simply just tell them to stop contacting me? If I were to do so, would they be able to sell the debt to another collector? And that collector to another and so forth and so forth? Or will they eventually go away?
Also, I read somewhere that if I take a settlement offer that the money owed becomes taxable income and I would have to pay taxes on it? Is that correct?
I am going to do a video for my You Tube channel about the morality of debt. You might want to subscribe to my “debtbytes” channel if you are not already. You will appreciate the video.
Those three collections are often referred to as Zombie debt. They are dead to the point of being uncolletable and cannot appear anywhere on your credit. Yes the collection agencies can still technically write to you and call you, but your right to tell them to cease communicating with you is federal law. Here is a good cease communication letter example. You want to download the one at the bottom of the bullet list “Wants the debt collector to stop any and all contact”. That letter is made publicly available by the CFPB, a federal consumer protection agency tasked with regulating debt collection laws.
As far as getting some letter in the mail about owing millions, it won’t happen, and it would not matter if it did because it is zombie debt.
Many debt collectors do resell debt. Some of the big companies like Midland Funding and Portfolio Recovery Associates are no longer allowed to. I suspect that will become more normal (not being able to resell). But the resale does not change the character of the debts. They are still zombies. You would likely resend the cease communication letter again to each new debt collector. This angle may change later too – where the last debt collector would be responsible for passing on to the new owner that you requested all communications to stop – as your legal right.
If you settle a debt, and more than 600 dollars is forgiven, the portion of the debt that is cancelled can be treated as income for some people. Be sure and read that article before moving forward with any settlement.
I just checked my credit score through credit karma, it shows a score of 594 and a collections account of just under $2,500 opened in March 2010. I have never received any communication from any collection agency about owing money to anyone for any reason. Can you help me understand what I need to do to resolve this issue? I live in Reno, Nevada.
Is yours a case of not knowing of any unpaid debt whatsoever, or are you aware of some bills that you could not keep up with from years ago?
If you are not sure what the debt is for you will want to reach out to the debt collector in order to learn what you can. It could be an error that is showing up on your credit reports.
Post an update with what you learn.
I have been reading about the statute of limitations regarding the collection of a debt in my state. I live in California. In California, the law (in my layman interpretation) states California Cal. Civ. Proc. Code § 312 et seq that 4 years (written), 2 years (oral), 2 years (injury), 3 years (property damage). What I can’t find is when the statute starts and ends. That is my question here. Does the statute start from the date of last payment, the date of the charge off? What if a payment was never made? Finally, what about when creditor or collection agency renews the debt after so many years (seemingly giving new dates to the credit report agencies to renew debt) ?
The SOL to use the courts to collect generally starts from the date you first missed a payment.
If a payment was never made it would likely be the date one was first due (but never made).
There is no legitimate way to renew an unpaid debt for credit reporting purposes unless you are sued and a judgment gets entered (has a whole new 7 year shelf life).
You can renew the SOL to sue in some very limited ways, but that does not appear to be the question.
You can dispute any later collection item that attempts to reage the debt as if it were a more recent collection item than it actually is. Be sure any dispute you file is consistent with your goals for resolving debts.
Hi Michael,
I have a question. I had a repossession occur about 8 years ago and still owed about $8k that was never paid. It has since been removed from all my credit reports due to the age, however, I am wondering if this will still show up if I apply for a new auto loan? I had heard something that lenders can still access that history even if completely removed from all credit reports. Is this true?
Thank you!
It is possible I suppose, but automated underwriting is likely not going to see it to factor loan approval and interest rates. And most lenders (not just auto lenders) use automated loan software.
Hi
Here I am once again finding myself struggling with a difficult debt collector and just when I thought I had cleared up all erroneous information on my credit report.
I just received a copy of my TransUnion credit report. Under adverse accounts, a debt collector is trying to collect on an account I know nothing about. When I tried to call and speak to them they would tell me nothing other than a charge off date of 2013 on an account opened in 2002. When I asked for the last payment they show on the account, he said he didn’t have that nor did he have to provide me with that. Federal Law, Man (his words not mine). When I asked for a date of when the account was first opened, again he said he didn’t have that nor did he have to provide me with that. Federal Law, Man (his words not mine). Luckily, the original creditor was on the credit report (cell phone company). When I asked the debt collector for a phone number to the cell phone co, the original account number, etc., once again he said he didn’t have that nor did he have to provide me with that. Federal Law, Man. And of course he used a couple of expletives, said that I was a possible drug addict when I told him I was homeless, threatened me with court action, and reporting the info to the two other credit report agencies. I told him I think someone might have stole my identity and opened up this account. He said it didn’t matter, I was still responsible for the debt and hung up on me. I tried calling back several times to get more info only to be hung up on again and again.
After speaking with the debt collector, I called TransUnion and filed a dispute for the adverse account. They told me they would investigate and get back to me within 30 days. I’m still waiting for my other two credit reports. My question is where do I go from here in the meantime? I also believe the debt collector is refiling the claim after every seven years….to try to renew the debt.
Thank you
Lucky
What are the particulars you can share about the phone company reporting?
What is the name of the debt collection agency the collector works for?
What state are you in?
Had a defaulted HSBC acct which was settled in full in 2007-. HSBC reported correctly. In 2012 Cap1 bought HSBC accts., including mine and began reporting a Cap 1 Acct with an HSBC acct no.
Two different Cap1 banks are reporting the same acct to two different CRAs. Neither is reporting the date of default- have disputed many times- always comes back as verified
Cap1 claimed, to CFPB, that removal date was june 2015; but still reporting as stated.
Is this legal? Cap1 bought nothing and told the CFPB that they bought an account with a balance; but would not collect on it because it was settled in full. There does not appear to be any cases with rulings related to similar events. Would appreciate your comments.
I would refile a complaint with the CFPB about the prior complaint response where Capital One said they would delete in June, but still have not.
I would also consult with an experienced FCRA consumer law attorney and see if they think this is worth pursuing. I can email you contact info to attorneys in your area that specialize in this if you post the name of a nearby larger city.
Yes I will refuse with CFPB and yes please forward attorney names- I am in Wsstern Pa
I sent you an email with contact details to an experienced attorney you can talk to about your credit reporting issue. Let me know how you progress.
Hi Michael,
I have a question on whether I should dispute something on my credit report or not. I had a vehicle repossessed back in October 2009 and still owed about $7k. I was never in a financial position to make any payments or negotiate with the collection agency, so I have never spoken with or contacted them. The original creditor is not even listed on the 3 credit reports anymore, as I disputed that it was being listed twice (the original creditor and the collection agency) and it was removed recently. The collection agency has had the account since 2010, but it does not list the last payment date or anything along those lines from 2009. It only lists an “opened date” of September 13th, 2012, which is not accurate. I know it’s past the SOL (the debt was in Virginia) but still under the 7.5 year timeframe to be removed from the CRAs. Would you recommend that I wait it out to fall off or dispute the debt since they don’t have accurate dates listed?
Please let me know! I appreciate the help, and any other advice you’d have to give in my situation. I’m trying to clean up my credit and get an auto loan shortly.
I would dispute the debt collectors entry as not accurate. You may hear from them about collection again, but the SOL to sue on this debt is up in Virginia, and it should fall off your credit reports soon.
Who is the debt collector reporting on your credit?
Accelerated Financial Solutions
I also don’t remember when the date of the last payment was on the vehicle. Just that it was repossessed in October 2009, and if my memory serves me correctly, it was unpaid for a number of months before it was taken. As I stated before, the agency reporting the debt has no information at all on dates beyond the opened date that’s incorrect. Not sure if this info helps at all.
Hi, I live in Texas and the SOL expired December 2014 for my bad accounts. Most of them show up as due to age off December 2017. I have a judgment that was entered in May 2011. It shows up as public record along with two bad trade lines that are associated with it, one was a repossession and the other was an unsecured loan, both are from the same creditor. These two are killing my score because they are showing as open charge offs, 30 days late, but it does show in the payment history that I sent my last payment at the end of 2010. My questions are these: if I pay off the judgement now, will it reset the age off date on the two bad trade lines? Should I dispute the open/30 days late status? Should I just wait for the actual accounts to fall off before paying off the judgment? We want to purchase a home but don’t want to extend our wait unnecessarily, how would you go about it? Thanks in advance.
Paying off or settling the judgment will not reset any dates for the other collection entries to age off of your credit reports.
I would not wait until the original charge offs and repossessions fall off your credit before negotiating the judgment. The judgment debt is likely growing from interest. If you can afford to resolve it now you will often save more money.
The judgment is going to turn up when you go to finance a home, and regardless of whether it is on your credit reports or not. The judgment normally needs to be resolved before you get a loan approved.
My first goal would be to resolve the judgment and get that updated to show as satisfied. Only after I get the judgment dealt with would I mess with disputing or applying for credit.
Michael,
I have a Citifinancial account from 2009 due to the construction crash my income dropped drastically and i have been unable to pay. The last payment i made to them was March 2010. It is due to come off my credit January 2017. My husband and i went through a christian debt counselor to clear up our bills we owed and have been able to do so with everything except Citifinancial. Our counselor has contacted Citi to see what we could do to get this account cleared up seeing as it is the only one left. They have no record any longer of my account or who has it. I have not been contacted by anyone in years nor is anything other than Citifinancial on my credit report. What would be the best way to handle this account because we are still currently paying into the debt counselor account and they have offered to go ahead and close the account and refund us the full amount in our account but i dont want 2 months or more to go by and all of sudden i start getting contacted by someone representing them. I am in the state of Georgia and am pretty sure they statue of limitations is close at hand. Please help
How long ago was it that your other accounts were taken care of? Have there been any recent credit reporting inquiries by known debt collectors? How much was the balance owed to Citi Financial when you stopped paying? Is there a balance showing as due to Citi Financial right now on your credit reports, or does it show as zero balance due?
Hello, I live in Florida and about 5 years ago T-Mobile approved me to cancel my account with penalty fees as my area was not serviceable. Years later I am receiving letters from debt collectors trying to collect money from the closed T-Mobile account.
My main issue is that I am unsure whom to contact about this issue, the T-Mobile account is closed completely. I really would love to remove this inquiry off my credit report as it has negatively impacted my credit for many years and would love to rebuild my credit. Any advice would suffice, thank you in advance.
If it were me, my first approach would be to put together a chronology of events that begins with opening the account, and on through to when approximately the account was closed for lack of service etc.
I would want to send a credit report dispute to all of the credit bureaus that the debt is not valid, but also include a dispute or notification of a sort to any debt collectors that are currently trying to get you to pay.
Once you have the chronology and dates of all that took place together, you can call me for a quick consult at 800-939-8357, choose option 2 to get me direct.
Thank you for your answer, there was a typo in my original comment. I meant to write, “Tmobile approved me to cancel my service WITHOUT penalty fees.”
I HAVE A DEBT IN COLLECTIONS FROM 2009. I RECIEVED A CALL THIS MORNING FROM PORTFOLIO RECOVERY (DEBT WAS ORIGINALLY WITH HSBC BANK) THEY TRIED TO GET ME TO MAKE A PAYMENT BUT I THOUGHT I AM ALMOST TO THE 7 YEAR MARK FOR IT TO DROP OFF MY CREDIT REPORT. WILL THIS INDEED DROP OFF MY CREDIT REPORT IN 2016 OR DID I RESTART THIS TIMELINE BY ANSWERING THIS CALL? I DID NOT SET UP ANY PAYMENT ARRANGEMENTS. THE LADY ON THE PHONE WAS ACTUALLY REALLY PUSHY AND I ENDED UP HANGING UP ON HER.
What state are you in? Can you confirm the date you last made a payment to anyone about this account?
Michael,
From 2007 thru 2010, our bank accounts were accessed by a third party. This caused cancellation of electronic payments, $7500 missing from the accounts. This was reported to the banks the credit card companies. In April, 2008 our bank verified the illegal access to our accounts had occurred for 18 months and they would make the attempt to close the breach, which included data stored in their system. Subsequently, we learned that our accounts were accessed through the Quicken Online Banking application used by our bank.
This was all reported to law enforcement, yet no action was taken due to “the amounts of the theft were too low to assign the case to an investigative unit” Despite the reports, we continued to see evidence of tampering and the credit institutions were uncooperative in our requests for assistance..
We even sent documentation and over a thousand files to the Department of Justice. In April, 2010, a 41 page affidavit was sent to each creditor, the FTC and the DOJ, documenting the fraud and demanding a full audit of access and transactions on our accounts. This included our mortgage account. Oddly, each banking institution, refused to respond. We had been told we had the right to withhold payments until such legal request was satisfied.
Since no responses were received, the accounts became long past-due and finally we decided not to pay on the subject accounts.
Not a single creditor, other than our fraudulent mortgage holder, made any attempts to collect. Those debts sold to third party collectors, in each and every case, were dropped by the collectors based upon the documents provided to them.
These items appear on our credit reports by the original debtors. They are all 48+ months old. Having been residents in Virginia, they became legally uncollectable after 36 months, yet Bank of America and CapitalOne keep reporting balances due each month thereby reducing our credit scores by showing current delinquencies. I have been unsuccessful in getting the CRA’s to show a zero balance due and refrain from using the last activity date on the account as the current month.
I have repeatedly requested deletion based upon suspicion of potential fraud as well. All CRA’s have an extended fraud alert.
The mortgage is another long story. The CFPB has been useless. Any ideas?.
It sounds like the banks think they are reporting legitimate balances you did not pay (at least partially legitimate). Based on all that you have been through, it sounds like you would have to sue them to get this rectified. There will be a cost to that to consider.
Have you spoken with any experienced FCRA attorneys in Virginia?
Michael,
In November of 2008 I got very ill with cancer and was out of work for some time. I have 5 credit cards where the date of last payment was between December 23, 2008 and January 3, 2009. These cards (Capital One and GMAC) are still reporting, and still reporting balances. I have 4 credit cards (same last payment range) that are still reporting, but are reporting a 0 balance. I am in North Carolina. I have many medical collections but that is another story. I am getting conflicting information on when these should fall off my credit report: 1) date of first delinquency (would that be the 30 on the credit report?), 2) date of last activity (explained to me as when the creditor sold or put the account in collections) and 3) the date last reported to the credit bureau. I would like to buy a home inside of a year and need some clarification on this point. Thanks.
Add 7 years and 6 months from the date you missed that first payment. That would mean accounts that last paid at the end of 2008 could stay on your reports as long as mid year 2016.
Anyone reporting a zero balance on your credit reports will likely have sold the debt off to debt buyers. Anyone reporting a balance still would likely be found to have retained the legal rights to collect.
If you are looking to buy a home in a years time you will probably want to settle these accounts or extend your goal out 6 to 12 months.
Michael,
My husband had a car repossessed in 2009. We haven’t got all the documentation from the original bank/lender yet, but he’s thinking it was sometime between June-August (2009). Huntington Bank had it on his credit report until recently, with no outstanding balance listed. We thought everything was taken care of. Until a collection agency, Vance and Huffman in Virginia showed up on his transunion report with a balance! They have it listed as a new loan as of May 2015. We are from West Virginia and as far as I know, WV’s SOL is 6 years on a promissory note debt (car loan).
No one has contacted him via phone or e-mail. Luckily, I just happened to look on creditkarma! We just bought a house in July and this wasn’t listed on his report. What should I do? Dispute it with Transunion first to have them change the ‘start date’ of the debt? If the SOL law in WV is 6 years, should I just let it fall off his report after I dispute it?
Thanks for your advice!
I would file a credit reporting complaint against the debt collector with the CFPB (review the link in its entirety to better understand why).
I would do that instead of disputing it in this instance, where I may suggest the credit reporting dispute in other situations.
Hi there. First, I just want to say thank you ahead of time for your help. I’ve been looking for someone to turn to for help and just didn’t know where to go. I’m 28 and when I was 18 I made a couple mistakes, made relationship, unplanned pregnancy, etc. I had two credit cards and as a single mom one thing led to another and I fell behind. Anyway. Here it is 2015 and finally I’m married and trying to fix my mistakes from a decade ago. I’ve been living on cash/checks/debit for 10 years. No one would give me a credit card, home loan, nothing because of these mistakes. So here goes. In 2011 I ran an Experian report and it showed about $4,797.00 of dept spread between 5 different things. Two credit cards, dish network, an ATT bill, a bank. The makings of a home that was destroyed basically. Anyway, when I started over with my daughter I couldn’t pay these things. I tried for a while but I just couldn’t. I called and begged for a payment plan but no one would work with me. No one would settle. They wanted lump sum payments and I didn’t have 800 here or 1000 there just laying around. Eventually I just got tired of trying and ignored them. Now it’s to the point where I need to fix it all and every once in a while I’ll apply for a small credit card online hoping I’ll try to build something etc and get denied and just bummed all over again. No one would give me a chance. I don’t make awful money. I’m a 911 operator in Illinois. I’ve been employed at my job for 8 years, 5 full time. I’m dependable. But no one sees that. So I signed up for creditKarma last year, and they couldn’t even generate me a score. I just got my Experian report again 2015, going to try to pick one of these debts and just buckle down, but they’re gone. There are two negative things on it that wasn’t on the 2011 report that came back to haunt me but both of which I’m already handling, so they aren’t really of concern to me right now. My issue is the other 4 things from the 2011 report totaling $3,971 are NOT on the 2015 report. They say charge/written off on the 2011 and say they were to stay on until ex. Jun 2014 or whatever date and are no longer listed on my 2015 report. I know that these debts are still owed but (if morals were not a little at play) would I still HAVE to pay these debts if they’re not being reported and no ones after me? Have they just given up on me? Will they come back after me? Will these unpaid debts hurt me even though they’re not even shown any more on my latest report? And how do I go about building new credit if no one will give me a chance to start over? Should I try to get a credit card with my husband signing under me? When someone looks at my income to debt ratio it looks great. I pay cash for everything. I have no bills in my name. Everything is in my husbands name. We have separate finances and ever since I messed up I’ve always held the opinion if I didn’t have the cash, I didn’t need it but my credit it hurting me. . How can I know that I’ll get a card without my credit being ran every time I try for nothing? Is a secured credit card the way to go? I know I probably sound like the most awful person in the world. I just made some bad judgement calls at a young age and trusted someone to start my life with too young and when it didn’t work out I couldn’t do it all and I’m tired of still paying for that mistake all these years later. Please help me. Thank you.
-Rachel N Thompson
Paying debts from that far back that are now off your credit reports is a personal choice. Because it is likely the debts were sold off to junk debt investors by now, it is harder to make a moral argument that paying the debs would make anyone whole. But I understand it when people choose to.
The debts did not go away per say, collectors can still call and send you letters. But you can tell them to stop contacting you and they must do so (send any cease communication request in writing and use certified mail).
Start rebuilding with your husband as a cosigner if you like. You may want to try applying for a secured card too.