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.
I received two collection notices today, both of which are for debts that are over 10 years old. They both don’t show up on my credit report as I just had my credit report pulled yesterday. Should I ignore the notices or respond to them and dispute? I could pay them if I need to but I don’t want them to show up on my report after the fact.
joanne – What state do you live in? Were the debts ever taken to court? Are you certain that no payment was made for all of those years? What are the names of the debt collectors contacting you?
I live in California. The debts have never been taken to court and no payments have been made. The name of the collection agency is Convergent.
Thanks!
Joanne – If the debts were unsecured debts, like credit card or similar bills, the SOL to legitimately sue in California would have passed. What types of debts were these?
If indeed unsecured debts, and passed the SOL, sending debt collectors, like Convergent, a cease communication letter, will stop collection calls and notices from them. The danger in sending cease communication letters is that it leaves creditors and collectors only two options to try to collect from you:
1. Violate federal law (often state consumer protection laws too), by ignoring your cease communication letter and continuing collection efforts over the phone or in writing.
2. Limits the contact they can have with you to collecting through the courts, which means suing you, and that is something most of us would choose to avoid.
You are passed the risk of being sued, and if you were sued, you would have a simple time of putting that to rest. And if they continue trying to collect from you through the phone and mail, you have an action you can bring against them.
You could also just do nothing.
My husband took a car loan 7year back in which he defaulted to pay. But after 7 year collection agencies are calling me at my office for default even though i don’t live with my husband. but collection agencies are harassing me for not paying loan taken by my husband and collection agencies are calling at hr department. it is really frustrating. how do i deal with this?
please help.
Somya – Did you cosign for the loan back then? Was there ever any lawsuit filed to collect on the deficiency balance? What is the name of the collection agency calling your HR department? Did the debt collector mention anything about the fact they are trying to collect a debt to the the person at your job they spoke with?
I am asking all of these questions so that I can offer more focused feedback. Also, what state are you in?
I went through a divorce a few years back as well as the loss of a business. I used a settlement attorney to settle out my debt, all except for one debt with chase was settled. The balanced owed is right at $10k. The SOL in NC appears to be 3 years and the last payment activity on the account was back in early 2009. My understanding is that if you contact the creditor after that SOL they can use that as a recognition of the debt and restart the clock. My credit score has begin to climb from the low of 520 to about 640 now (even with this out there) and continues to get better each quarter. My question is regarding this aged account, is it worth calling them to settle? Or should I continue to let it age off entirely? My wife and I are planning to purchase a new home next year and suspect that by the end of this year my score will be at about 670, not great but reasonable enough for a mortgage. I have a secured and unsecured card that are helping to rebuild my score and a car. I have never been late on a mortgage in my life, no bankruptcy, no lates on car payments etc. I am unsure how to proceed on this one particular debt, any advice would be great. Thanks
Mike – That unpaid account with Chase showing on your credit report will skew debt to income calculations, and that could mean an impact to how you are viewed using the “ability to repay” rule – new this year. You could also find that the existence of an unresolved account (regardless of the SOL expiration), could be a concern with loan approval.
Can you come up with the money to settle this? How long will it take to pool together, say 4k? Are you comfortable calling and negotiating the settlement yourself? If you do circle back to settle this one, I would wait to wake up that sleepy little bear until you have the money together.
I can pull cash together quickly I was not sure what a reasonable settlement amount would be to close this quickly.
Mike – If it were me, and with how aged the debt is, I would start with an offer of, say 25% to settle with Chase (if they still have it), with an expectation that it could be higher, up to 40%. If you find out Chase does not have the account, ask who does, and for contact details if available. Post an update and lets go from there.
You may want to consider talking to a loan officer about your credit profile, and the unpaid collection. Just to round out the feedback you are getting.
I have been trying to dispute an auto loan that I opened in 2005 that was originally with Americredit that is now with GM Financial. That account is paid in full and has been for over 3 years. In the begining I did have some 30 day late payments but not toward the last 3 1/2 years of the loan. These late payments are still affecting me when I try to apply for credit. With the exception of these late payments I have an excellent payment history and have been able to make several new car purchases however some lenders won’t take me due to those late payments. My question is since this account is almost 9 years old from the opening does the SOL apply and should the credit bureaus remove it?
Adam – Negative information has a shelf life of 7 years in the instance you are describing (if I interpret what you shared correctly). What are the precise dates of the lat pays showing on your credit? And are these late pays showing the same on all credit reports, or are they not showing on some?
Oh, and the $500 (or $7000 total balance) from the Wells Fargo card IS NOT ON my husband’s credit report!!! Which was another reason I couldn’t believe they were so aggressive.
Hey Michael. The weirdest thing happened today. I got a phone call from an atty’s office trying to collect on a credit card my husband had TWELVE years ago!!! They were actually trying to verify our information so they could have us served with paperwork to go to court. Yup, we were fixing to be sued for a Wells Fargo card my husband had. Talk about ironic, huh? If I did’t know any better, I’d say they knew we were trying to settle our finances, and now was the perfect time to come knocking! Twelve years ago, my husband had this Wells Fargo credit card with a limit of $500. Today the atty’s office wanted close to $7000! After I calmed down, I did some pleading and groveling and got the balance down to $501.23. I had to pay it while on the phone with them today, but it was worth keeping us out of a public record judgement in his name AND saving us from the $7000! I couldn’t believe they were coming after him twelve years later! Anyway, back to the game plan…
The credit cards we have been talking about have been turned over to collections.
The CapOne card shows to have been charged off 11/10. ($1302)
The HSBC was charged off 11/10. ($380)
The Old Navy Card was charged off 7/10. ($359)
All three also show to have been purchased by another lender. (I’m not sure exactly what this means.)
I’m just going to list the medical debts to try to answer your timing question:
8/13 $478
8/13 $438
8/12 $253
7/12 $165
12/09 $164
6/12 $163
8/13 $122
2/11 $99
8/12 $76
12/09 $67
We DO want to settle all of the above issues; however, we owe about $1000 in local bills right now (in addition to the $594 that remains from the Citi Financial Sears judgement settlement from before) that we will pay first. We are looking at about 3 months before we can start to whittle on the debts above, BUT we will get to them!
Amanda – Debts that are beyond the SOL to sue you, and to appear on your credit reports, are off the radar. Anyone trying to collect on debts that old can be sent a cease communication letter as long as you are certain that the SOL is passed.
It is not an “as if” that debt collectors somehow appear to know that you are settling or paying collection debts. They often actually do know. There use software and/or services from companies that can alert them to changes in your credit reports. When an account gets updated as paid/settled, or you apply for new credit, they can be alerted. This is sometimes why people seem to get bombarded by new collection calls and notices on debts they had not heard anything about for a couple years. If any more collectors call about debts that old, post about it here before taking any action. It would be good to hit priority debts, like those appearing on your credit reports now, in order to reach your goals sooner.
The credit card debts shown as purchased by another lender – It would be good to know by whom, but generally I target settlements with debt buyers at somewhere between 30% and 50%. I would look to settle those credit card bills you listed first, then circle back with the medical bills.
When you are ready to get started, I may have the second and third stage settlement with debt collector sections up on the site. Check back for updates on those new sections that will have tips for what you will be working toward. You can subscribe to the RSS feed on the site to get email updates of new sections being published.
Moving comment discussion:
Amanda said:
“My immediate goal is to get my credit score to a minimum of 620. We are hoping to buy a new house using my husband’s VA benefits in the next year. As of two weeks ago, my credit score was 587. My husband’s is 640, so we are good to go with his credit. I am looking at my credit report, and of course the judgement was the biggest obstacle on it. However, we have a $1300 closed Capital One credit card balance, a $380 HSBC closed credit card balance, a $359 Old Navy closed credit card balance along with about $3400 in 11 different medical bills tht have been reported to my credit. That was the end of the derogatory items, thank goodness!!! Our home is in my name alone. (Ironically enough when we bought our home, our credit situations were reversed.) We have 2 vehicles and a $6300 loan in both our names that is helping my credit situation. We owe about $3000 on that loan (We will be paying off as soon as we have the judgement situation taken care of.) I have a Capital One credit card, a Best Buy (Capt One) Card, and a Credit One credit card in just my name that have ZERO balance on them. Soooo, after all that, can you suggest a quicker route to increase my credit score? THANK YOU AGAIN FOR YOUR ADVICE!!!”
Amanda – Are the accounts you listed as closed (CapOne, HSBC, Old Navy) still receiving payments, or are they collection accounts. If in collection, for how long?
How old are the medical collections? Are you prepared to settle them as well?
Settling the judgment we discussed on the other thread is part of the picture, but depending on your answers to the above questions, these accounts are holding you back as much or more.
The quickest route to improving your credit will depend on the answers to your questions too.
I just check my credit score, which I haven’t done in 7 years plus because I already knew my score of low from debt. I got all my Debt while living in Ohio at a young age. I’m 30 now and moved to Florida going on 8 years in April. I have no had any new credit cards and all the ones from when I was 18-20 have been closed for years. All of these old credit debts have also been in collection for at least 8 years. Will they ever go away? How can I get them off my credit report and start fresh?
Bethany – Can you post a list of who is appearing on your credit report today (names of companies, banks, debt collectors), the balances reported as still due, and the type of accounts you had back then (credit card, store card, personal loan, utility bills forgotten)? I can offer feedback once I have a better picture of what is showing.
Hi I have a couple of questions:
1) I have a private loan $21,000 that shows up on Transunion report only. It is due to go off my credit report this spring/summer. They have not contacted me in many years and the original lender is not even reporting to the credit agencies. It does not seem to be affecting my score too much, although my transunion score is a bit lower. I live in Illinois so I think the SOL is 10 years (it has been 7 years). Is it possible they will sue me even after it goes off my credit report this year? Would they have sued me by now or can/do they wait until close to the SOL?
2) I have a closed charge-off account for $3541. It is not a collection account but they are hounding me for payment. I made the mistake of picking up their call but told them I have to do some research before I consider paying them. It now states ” Deragatory charge off occurred in 2/14″ on my identity guard information page and “balance date” on my report also states 2/14. Does this mean the debt/SOL reset? I believe that it become derogatory initially in 2009 and I have not paid anything since before it was derogatory. I’m not sure how this account is affecting my credit score.
3) I have raised my credit score 20-80 points in 2 months by paying all accounts on time, opening up 2 credit cards totaling $2500 and disputing incorrect information. However, I have several late payments on my several student loan accounts (60, 90, 120 days late) over the years with the last being Oct 2013. I’m wondering if I pay everthing on time for 2 years if this will significantly improve my score?
Thank you
1. Some creditors and debt owners are more prone to place accounts with collection attorneys, with authorization to sue in order to get paid, in the 6 months leading up to the SOL expiring. But that is not always the case, and some (larger banks and smaller credit unions) are prone to more aggressive collection efforts long before the SOL need be considered. How sophisticated is the lender? Does your local court see them listed as plaintiff in many cases? Is this a business loan, or personal? These are just some of the questions I have in order to help you assess how likely they are to sue now, or for the time remaining with Illinois SOL on written agreements.
2. If you could post the name of the creditor with the closed charge off showing on your credit report I would be better able to offer feedback. Generally, the SOL for credit reporting is not going to reset, though a court judgment for the same account gives a collection account a new and different type of shelf life. It is possible to reset the SOL in your state to be legitimately sued for collection, but from the sound of it, that did not happen (need to know more here too).
3. Paying all existing accounts showing on your credit report on time, and for 24 months, would likely improve your credit scores. The negatives you have now would age off by then, which is going to help too. But what are your scores now, and what are your credit goals, or loan product you will be looking to get approved with fair pricing, in the next few years?
Hi! Michael I found a form letter that I think will solve a lot of peoples aggravation, including my own. I did look at the form letters that this website had to offer, but they didn’t seem to have enough to get the information one would need to fight off a debt collector. Please let me know what you think? I do value your comments. I haven’t sent this letter out yet, just waiting for your feed back. Again thanks for all of your help. Here it goes!
To Whom It May Concern:
I am sending this letter to you in response to a notice I received from you on 02/10/2014. Be advised, this is not a refusal to pay, but a notice sent pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g Sec. 809 (b) that your claim is disputed and validation is requested.
This is NOT a request for “verification” or proof of my mailing address, but a request for VALIDATION made pursuant to the above named Title and Section. I respectfully request that your office provide me with competent evidence that I have any legal obligation to pay you.
Please provide me with the following:
• What the money you say I owe is for;
• Explain and show me how you calculated what you say I owe;
• Provide me with copies of any papers that show I agreed to pay what you say I owe;
• Provide a verification or copy of any judgment if applicable;
• Identify the original creditor;
• Prove the Statute of Limitations has not expired on this account;
• Show me that you are licensed to collect in my state; and
• Provide me with your license numbers and Registered Agent.
If your offices have reported invalidated information to any of the three major Credit Bureau’s (Equifax, Experian or TransUnion), said action might constitute fraud under both Federal and State Laws. Due to this fact, if any negative mark is found on any of my credit reports by your company or the company that you represent I will not hesitate in bringing legal action against you for the following:
• Violation of the Fair Credit Reporting Act
• Violation of the Fair Debt Collection Practices Act
• Defamation of Character
If your offices are able to provide the proper documentation as requested, I will require at least 30 days to investigate this information and during such time all collection activity must cease and desist.
Also during this validation period, if any action is taken which could be considered detrimental to any of my credit reports, I will consult with my legal counsel. This includes any information to a credit reporting repository that could be inaccurate or invalidated or verifying an account as accurate when in fact there is no provided proof that it is.
If your offices fail to respond to this validation request within 30 days from the date of your receipt, all references to this account must be deleted and completely removed from my credit file and a copy of such deletion request shall be sent to me immediately.
I would also like to request, in writing, that no telephone contact be made by your offices to my home or to my place of employment. If your offices attempt telephone communication with me, including but not limited to computer generated calls or correspondence sent to any third parties, it will be considered harassment and I no will have choice but to file suit. All future communications with me MUST be done in writing and sent to the address noted in this letter.
This is an attempt to correct your records, any information obtained shall be used for that purpose.
Best Regards, Max
Max – This debt validation/dispute letter is much longer than it need be, but that is not a problem per say. My concern about such letters are the expectations people have when sending something like this. People tend to think they will receive something responsive to all of the points in the letter, but that is not realistic. I also have never understood the point of sending a letter with threats of suing in order to protect your rights. Any debt collector that has been in operation for more than a year should be real familiar with their legal obligations under the FCRA and FDCPA. No threats are necessary.
There are a ton of letters out there like this that people use. But people often send them out not understanding how simple it is for a debt collector to meet their obligation to validate a debt. And folks may not quite understand how sending letters like this may actually lead to more aggressive collection steps being taken, like suing to collect a debt, or that you may actually prefer to resolve a debt (if that is your goal in the first place) with the specific collector contacting you, as opposed to the next place the account may land (account gets placed or sold elsewhere for collection as a result of a letter like that being received).
I suppose if you are going to use a template letter, you might want to go with one that the CFPB has on their site. You can review those letters here. Some of those letters are even longer than yours. But vusing them will let the collector know where you got it. And I suspect that would lead them to the assumption that you know how to file a complaint against them with the CFPB. But most collectors will look at all of this the same way regardless.
You referenced form letters you found on this site in your comment, but I have not really published anything like that. Mainly because I focus most of my time, and the content on this site, to helping people resolve legitimate debts – not fight off a debt collector. Form letters like the one you posted, or most any letter sent to a debt collector, can be used as part of a strategy to resolve debts. But they tend to be used, at least in my opinion, as a tool to make debt collectors go away and chase someone else. And to that end, I find using these letters to be a mixed bag.
What exactly is your goal with any legitimate debts you have out there in different stages of collection?
I recently ran my credit report and noticed a collection agency on it. It apparently got turned over to them in March 2013. I never received a bill from the originator or had any communication regarding this debt. It stems from a medical situation and didn’t even know that this particular company was involved. The debt is only $387 and I would have gladly paid it if I had known about it. Is there anything I can do (aside from paying it, which I will immediately) to get it off my credit report and raise my score back up? I currently have a 734 and am typically around 780.
Christine – Before calling the collection agency to resolve the debt, call the medical service provider or their billing company, and see if you can pay this debt directly and get it removed from your credit reports. Explain that there was a misunderstanding, billing error – or something – and it was never your intention for a bill to have gone unpaid. Only after you have tried that (even with a few phone calls), would I look to pay the debt collector.
Hi! Michael
Thank you for your prompt reply. I do have a question. Should I send the Collector their original Statement back or a copy, together with the Cease Communication letter? Sorry just one more question. I find it odd that the Statement doesn’t show any account numbers anywhere on it, only the payment stub is there an account number. If I was to have paid this Collector, I would have never had an account number for reference. I looked at all of my banks, and credit card statements, and other bills, they all have account numbers on both. Michael, is this a bit unusual? Thanks again for your help, Max
Max – With such an increased awareness of debt collection practices, information easily obtained on the web, new collection guidelines that will be applied nationally later this year/beginning of next, what you have going is a bit less usual, than say 10 years ago.
You could send a copy back with the letter, but keep the original for your records.
Hi! Michael. I received a call and a person told me my name, and ask if this was me, I said yes, and then she said is this the last four digits of your Social Security, and I said yes. This ended up being a Debt Collector, she called on February 3rd 2014 at 2:42pm about a Citibank card, I thought the lady was talking about an AT&T Card, that I closed out sometime last year, she got agitated, and said when did you pay it, and to whom. I told her, I’m a little confuse, I had close that account, because my wife had past away, and I didn’t need that card anymore. The lady said I’m talking about a debt you owe back in the 1990’s. I kinda laugh and then said, I have know idea what you’re talking about, my credit is perfect, and I owe no one anything. She went on and on about what they will do to my credit, if this is not paid off. I told her she’s mistaken, it’s not me, and I hung up. She call again today, from a different number on February 7th 2014 1:34pm, but in a more threatening boiterous voice, and more things about what this will do to my perfect credit. I got angry, I told her I have know idea what you’re talking about, an hung up. Today February 11th 2014 I received a letter from this Creditor, I won’t mention names, but the letter states you currently owe $6703.05 with accumulated interest, it also states the Original Creditor, this is about a Visa Card. I don’t remember having, and I don’t believe I ever did have this card, but it’s possible. This is 20 plus years ago, and I’ve had many Credit Cards in my life, but I know I never defaulted on any of them, and I don’t understand why or believe it’s mine. I have Identity Theft Protection, with a company, and they e-mail my an alert during this time frame. So I went on line to see what it was about, same Collection Agency that call, and the one that sent the letter. I got nervous, and got all of the three Credit Reports, only one Equifax shows this Collection Agency, the others showed nothing. Equifax showed that they were only inquiring. My credit report goes only back to 1996, with 19 still active, and all in good standing. Not one single late payment, in all that time, everything paid as agreed. Can you please give some incite on what I should do. I don’t want something like this to come up, and bite me in the ass, just because I ignored it. Thanks.
Max – Mistakes happen with debt collectors. Even if this debt were valid, and you knew it to be yours, I would still consider any collection attempt on a debt 20 years old to be a mistake.
If it were me, I would send this collection agency back a a cease communication letter. I would send it certified mail return receipt requested.I would keep a copy of the letter and the return card I get from USPS together in a safe place. You can use the sample letter language from the Cease Communication letter available on the CFPB website here (last bullet item).
If you hear from any one at that collection agency after you know they received your letter, post an update to this comment string and lets go from there.
The debt collector soft inquiry on your Equifax credit report should not impact you.
Crystal….As a general rule, private loans are NOT sold, but assigned to CA’s. Your loan balance is going up because your interest is accruing and capitalizing on itself. Plus as the loan ages, the collection fees go up. Also, private loans do sue, generally right before SOL expires.That can affect your credit up up to 20 more years and will end up costing you more in court and legal costs. Also it is normal for student loans to have multiple trade lines…the lender, the guarantor and then the CA/or law office.
Hi,
I was wondering if you may have some insight into my current situation. I live in NY and had a private student loan go into default about two years ago. The original loan debt owed was $19,000. Since then it has been sold over and over again multiple times. Each time it is sold a new collection account pops up on my report with a newer collection date and a higher amount owed. It is now listed as just over $34,000 debt with a date of 12/13. It is also currently listed on three times (the original debt as a charge off, then twice by two different collection agencies for roughly the same amount, one being about $400 higher than the other). How do I go about fixing this issue? And should these collection reports eventually be removed when the original charge off account will be removed (in about 5 years if it is not settled before then). Thanks.
Crystal – Is the original creditor reporting a balance still owed to them, or does is show zero due? What are the names of the two debt collectors showing on your credit report. Which one is trying to collect now?
The collections should fall off at the same time the original lenders trade line ages off, but collections are sometimes reporting with more recent dates, so you have to keep track and monitor your credit consistently around that time. You can dispute those items off when the time comes. You can also dispute multiple entries for the same debt that should not appear and cause triple jeopardy. I often suggest waiting for the smoke to clear on the SOL to be sued for collection, or after you have settled, or otherwise resolved the debt, before trying to clean up collections.
What are your credit goals now and looking forward a few years? Are there other collection items on your credit reports?
Hello,
I have an account that is now 6 years old. The original creditor was HSBC, a Best Buy store card. As of this Month it has been sold to NCB Management, a debt buyer. The date of last activity is now January 2014. I have had no activity in 6 years. Waiting for the SOL to expire is not an option..but I am unsure of how to handle this. This is actually the second time this has happened. This time it has caused a 41 pt drop in my credit score. Any help at all would be greatly appreciated.
Whitney – How many times is this same debt appearing, or been reported, on your credit report? Who had it before National Collections Bureau (all of them)?
By waiting for the credit reporting SOL to expire not being an option, am I correct in assuming you meant letting the get away with reaging the collection account is not going to happen? Is there some reason you need to resolve this collection debt now?
Hi, I have several small collections on my credit some of which I paid but was never report, all of which r from 8 to 10 yrs ago and the debt keeps getting bought out, will this ever come off? And they all r still affecting my credit
michael – Generally, any collections 8 plus years old (that long since payments were missed) should already be off of your credit reports. I suspect you may have had a few debt collectors reage your accounts when they started reporting the negatives years ago. Can you post some of the collection companies still showing up and indicate whether you paid or settled with them, and also if you are able to tie that collection account with an original creditor that is still showing on your credit report?
Hi,
Yesterday I recieved a collection letter on a Sears card balance that had been charged off in June 2006, I recently pulled my credit report and it is not showing up on it anymore either. My question is since I live in California I’m i still legally required to pay this debt now that I received a collection letter and should I respond with a validation letter request or should I just ignore it now that is has been 7.7 months since it charged off.
Cristine – From what you shared, your debt appears to have reached an age where many would define it as a zombie. If the state SOL to file a legitimate collection suit has passed (4 years in California), and the credit reporting limit of typically 7.5 years is up, meaning the collection account cannot hurt your credit, it’s dead, but still walks around from one debt collector to another.
I do see people circle back and settle or pay off debts this old, but for personal reasons. Any meaningful collection leverage is gone.
The quickest way to stop collection efforts with zombie debt is usually sending a cease communication letter certified mail return receipt to any debt collector that writes or calls. Some of the less than exemplary debt collector tactics are used on debts that are really old. If something pops up that doesn’t seem right to you, post an update and lets go from there.
Thank you for your response, I would like to settle the account I just have
worked so hard to get my credit solid again I didn’t want anything to
jeopardize it now.
Christine – Settling an account at this late stage of collection is usually pretty straight forward. What is the name of the collection company that is contacting you?
The letter is from Capital Management Sevices, Buffalo NY, and the balance is approximately $1000 with their interest.
Christine – If I were ready to settle this debt I would probably not offer more than 25% of that balance. Be sure to get the deal documented before you pay anything. Read this report for more information about getting everything in writing.
Michael
Thank you for the advise, it definetly has put my mind at ease and give me a game plan to finally get this behind me.
Can you tell me how long a repo stays on your cr in tx
Matt – I am not aware of anything in Texas that would change what is typically a 7 credit reporting shelf life for the auto repossession, starting from the date of the first missed payment.
Hi if I have a debt that does not show up on my credit report anymore and is a student private loan not a student federal loan. Do I still have to pay that back?
yousef – Who is the lender? When was the last payment sent in? What state are you in?
Hello, I have the same problem and with a student private loan that is old. I filed for a ch.13 bankruptcy which held them off from collecting from me and now I am finished paying the bankruptcy. I finished the bankruptcy in 2013 and am now recieving phone calls from collectors for the private loan. I live in California and the Experian report does not show a start date. It’s NCO Financial Services and says its a closed account. Lately I have been getting phone calls from an attorneys office about it. I’m not sure what to do. I don’t know when it started being reported as late but I did start my bankruptcy in 2008. Any information on what I should do or to better understand it would be wonderful. Thanks!
I made an agreement to pay off a debt through a collection agency and after the agreement I checked my credit report and it does not even show. can I stop payment with that CA?
tatiana – It may be that your agreement to pay off the collection account is not going to update to your credit reports until you meet the agreement (made the final payment). Who did you make the deal with, and what are the payment arrangements?