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.
Michael-
I see you give great advice to others, so I have decided to ask for your help. I have a pretty low credit score. Pretty much made some bad decisions when I was a teenager, and it came back to haunt me! Working on cleaning up my credit now so as too prepare for a better future. Now, there are some things on my credit, that are showing up as being opened n 2011, when I set stuff up in my name, in 2008. Can you explain why it would take 2 years from the time I actually had the issue, to when it was opened please?
amber – Can you post more details of about each account showing on your credit reports that concern you?
This is a piece off my actual credit report:
RJMDVD
Current Balance: $301
Original Balance: $301
Account Condition: N/A
Reported as: RJMDVD
Original Creditor: 01 COLUMBIA HOUSE DVD CLUB
Date Opened: 11/28/2011
I actually received a notice today in the mail stating that the date that the account was opened was on March 25th, 2008, and the date that it was purchased by RJM was November 28, 2011.
I am just mainly trying to understand whether or not this would fall off from the date that the account was opened (in 2008) or does it go by the date RJM purchased it in 2011? Why is there a 3 year lapse of time in between?
The date you first missed paying on the account is what you set your credit report clock to. When that original collection account falls off your credit, it should be accompanied (fall off at the same time) by the 2011 entry from RJM Acquisitions. RJM on your credit report with an open date later than when your account went to collection is not uncommon. Just make sure you are checking your credit reports to be sure all negatives, no matter who is reporting (unless a judgment) on the same account, drop at the same time. If need be you can dispute items off of your credit report that should not be there.
I have had over 30K in debt since 2005-2006 when I stop paying them due to job loss and other circumstances. I recently checked my credit score on a few different sites from Credit Karma, Experion and one more. They all had my dilequent debt for years on my report, I just checked today and finally they have dropped off – none of them show up anymore and they’re all gone. Not only that but my credit rating increased over 100 point since to around 670 from 568 years ago. Never again this will happen to me, but what great news to hear this beautiful spring season. I feel bad not paying them, but my original debt was only 9K but it soared to 30K in penalties and other fee’s. Keep the faith people, I suffered long enough for the mistakes I made. AMEN!
Hi.. my fiance and I are looking into getting into the home market. My credit score is at a 660. The lower of us two. I have two accounts in collections and one public record. These debts are about 6 to 7 yrs old now. Does this mean we will not be able to get into the market until these debts are taken care of? Might be a dumb question but how harshly will mortgage lenders look into these accounts in collections and the public record?
justin – What are the debts from, and the balances owed? What is the public record debt about?
Home loan lenders do care about collections that are unpaid, and less about ones that are paid. But with yours being so close to falling off the reports, is there a reason you want to be in the home buying market in the next year?
660 is not an impossible credit score to work with in home lending. FHA underwriting will roll with that (when collections are paid/settled).
Michael, the debts are from credit cards. About 12k. the public record was also from a credit card balance. Are you suggesting to either wait for it to fall off the report or work with collections to settle before entering the home buying market? How long does it take for public records to fall off.. assuming they do?
justin – I know very little about your situation, employment, life style etc. But just based of the debts, how long its been since these were paid, the cost to settle, the interest rates on home loans today vs speculating where they will be next year, and FHA type underwriting, I would wait until next year for the non judgment debt to fall off of my credit report. I would settle the public record credit card judgment appearing on my credit report. It has its own fresh set of 7 years for reporting, and will certainly calculate into debt to income ratios that will impact my loan down the road.
Who is the judgment creditor (name of plaintiff)?
Hello, im 26 years old and when i turned 18 got a couple credit cards of $300 and $500 limits. i was 18 years old and not ready to have these cards but i didnt understand that then haha. i never paid anything to them and maxed them out right away, on my credit report it has them as Estimated month and year that this item will be removed as 09/2014. Should i try and pay this off? or after this date do they go away, in return improving my credit score? i know its bad not to pay off your debt but i want to be smart about this. im more responsible now than i was back then and could afford a credit card. So if i wait until September will these just go away and allow me to apply for a credit card and “start over”?
Michael – Yes, your credit profile, and probably your credit score too, will improve in a few months when the charged off credit cards and collections fall off. Be sure that any debt collectors or debt buyers that are reporting on the same accounts fall off at the same time as original creditors reporting. Also, keep a complete copy of what your credit reports look like now… just in case anything pops back up later (it happens).
You can be doing things today (and yester-year for that matter), to improve your credit score and reports. Do you have any other items appearing on your credit reports besides these 2 collection accounts? If so, what?
Yes. I have 17 negative things on my report it says. I looked at this and all but 3 are student loans related. I’ve had my student loans consolidated but it still has all of the original student loans on my negative report as paid, closed. Then my consolidated loans on there as current and never late. Also under my good reports I have my dads cc that he put me on as an authorized user years ago but also took me off of that 5 years ago. It seems like my student loans are doubled on my negative report side because they were transferred to another company. I also have one student loan that says being paid by insurance which I have no clue what that means. I really trying to fix my credit problems so I can start to apply for things that I need improved. Like a car. But as of now it looks like I’m in bad shape and I really don’t understand what I’m looking at 100%
If you have steady work, I would suggest looking at an auto loan come September/October as a credit building tool. You will want to look at getting an unsecured credit card too. Use it little, and pay it off each month. If you do carry a balance on it, just try to not let it exceed 30-ish percent of your available credit limit.
I really like the free credit report card tool you can use with http://www.credit.com that will help you get a handle on what you can do to improve your credit reports and score.
Good Morning,
I am here to ask for your help. My husband has a Maryland state tax lien that is on his credit. It was placed in 2007 but according to the people at the tax office in Maryland it is from taxes that he owes from 2002-2003. We asked for proof because they are saying he made $950 in state taxes for working 3 weeks there. That seems awfully high. With interest and penalties they are asking for $1500. The only paper they sent us stated the amounts owed. We can not get any other proof from them that he owes this, like anything showing where he was working then or how much he made etc… what can we do? we need this off by August because we are buying a house but don’t feel as though he should pay for taxes he doesn’t owe and we don’t really have the $1500 to send them right now. Please give me some guidance 🙂
Have you talked with them about any compromise to resolve the debt (settle the tax lien)?
He has tried but they wont work with him. They won’t provide anymore proof either about the amount. I didn’t know if we would go by date taxes were incurred (2002)or by date filed (2007). I also thought if they couldnt provide proof then they had to remove?? My husband is saying he only work there 3 weeks making $500-$600 bi weekly gross before moving back to PA and he was having taxes taken out during that time. He just wants proof that he actually owes this but getting no where.
Date filed would be what I set my credit reporting clock to.
Have you contacted any grievance or complaint center for the state of Maryland? An internal consumer affairs type of department? If not, that is where I would begin. And I would follow up all calls with written communications.
I have debts that went to court. I’ve paid them off, but they still show up. How long will they be on my record?
Judgment debts will most typically stay on your credit report for 7 years from the date of entry in the court record, but with some variables depending on the state, and situation.
How can the law changing the SOL be applied retroactively to a contract signed prior to 2011? I thought that contract law implies that you are signing a contract with knowledge of the law at the time the contract is signed.
Can you offer more context to your situation?
Hello, I have paid the majority of my debt but I have one left, $1600 from a big box store. I contacted the original creditor to pay off the balance but the creditor advised me not to pay due to the age and it was over CA’s SOL. Last payment was 12/09 I don’t want to wait for the debt to fall off but I also don’t want to reactivate the account. What should I do?
justin – How is the collection account showing on your credit report? Is there someone other than the retailer or bank that serviced the card showing?
Michael, I need your HELP! I recently did a credit karma profile to check my credit. I’ve been out of work for some time but recently graduated from college and I’m thinking about getting married so I wanted to sort out all my paperwork. 2 store accounts from 2008 showed up on my account as Charged Off. They are fairly small amounts off money both under 500. I called up the stores and they said they dont have my accounts anymore and the customer service actually told me to call the credit bureau. Strange? I was wondering if they even wanted the money or not because I was prepared to pay. On my hunt I did an Experian credit profile and again I saw the 2 store cards charged off. They did say one would “this account is scheduled to be on record until Feb 2015 and the other in March. What exactly does this mean? Will it be gone completely and my score will go up or eventually recover? or should I pay it and the 7 years starts up all over again? I am so confused. I also have another store card that has been closed by the company a few years ago but I pay regularly. I was thinking of paying this off soon this immediately would this change anything in my score? Also I checked my score last month and it was 640 and when I checked today it was 628. Is this because I keep checking it? because I havent done anything financially. Lastly, my experian is showing both cards, but transunion is only showing one. What does that mean? After I make my next move how can I improve my credit? Waiting your response I cant get anyone to answer my questions! lol not even the people I owe money to ! THANK YOU
Patricia – It sounds like the original creditors sold the debts off. That is normal. Your credit reports will often show an additional collection entry by the new owner, while the originator, having sold the legal rights to the debt, would now show a zero balance owed them. Is that what you are seeing?
I would not be concerned if Transunion shows one less collection account. That is a good thing 🙂
If you have the money, I would encourage you to pay off the one creditor you are making monthly payments to. That will help a bit. The unpaid debts that are set to fall off next year are another matter. Paying or settling super old accounts is not always the best thing for your credit scores. But first, what state do you live in?
Yes I am absolutely going to pay off the one I make every month. I live in New York the 2 older accounts that are charged off are from 2008. Or atleast that’s when they went delinquent. The experian says they will “come off 2/2015” so I was confused as to what that actually looks like and why they didn’t want the money from me. If the 7 years mean it’s not going to show then I rather not start up another terrible 7 years . I’m finally finishing my masters and am praying for a teaching job with my own home and car soon to follow. Just trying to get out of this debt and very thankful that it was minimal under 2k. I just had no idea what charged off means, I always thought just paying is the best thing I’m learning that it’s not I think? Right ? Lol
It isn’t showing the new collections or creditor. It is still showing macys and bloomingdales but says charged off. I figured they sold the debt when I called macys directly and they said they don’t have my file or any info for me. When I asked where I should call to pay they said call the credit bureau. Then I spoke to experian and the customer service was more interested in trying to sell me a membership and wouldn’t give me any specific info about macys or bloomingdales. I went online got a hold of the free report from experian and trans union and that’s how I saw the “charged off” and the dates they would come off. Actually pretty confusing and worry some considering I’ve been saving up to pay them off. Now I’m figuring that might not be a good option and use that money to pay off a current account (well not current bc the company closed it) but I’m current with payments.
Thinking about getting one of those preloaded or secured credit cards after the charged off accounts blow off in 2015. What do you suggest?
I would be inclined to leave the two unpaid accounts alone at this point, unless the proper owner contacts you for collection. At the same time, I would view any collection effort, this far down the collection cycle, with skepticism. As in – there are debt collection scams out there that prey on consumers using info they somehow get a hold of from your credit reports or elsewhere. Post an update to this comment string if you hear from anyone about collecting the really old debts. If nothing happens for the next year, they will fall of your credit reports. But collectors can still try to get paid after the debts disappear from your credit reports.
I would encourage you to use a secured card over a preloaded one. Your bank may offer a secured credit card option, so check into that. If you want to look at options for rebuilding credit, I would recommend using http://www.credit.com for matching you with credit cards, both secured and unsecured.
Hey Michael! I have not heard from creditors regarding these two “charged off” accounts thank goodness! I’m just waiting out the time till they come off my report. If experian says they will come off in Feb 2015 and March 2015 would that be true? The one other card that I was regularly making payments on that was closed, I finally paid off in full shortly after I first contacted you. Its been a few months since then and I checked my CREDITKARMA report today and it was still showing the same score of 629 (“poor”) and still showing the 2 other cards which are charged off as “closed” and a credit inquiry for a capitol one card i tried to get in june 2012. Shouldn’t there be a change in my score since i paid off the one card I had regularly been making payments to? ?????
Second question.
I received a “pre approved” letter from capitol one in the mail, you know one of those deals that says pre-approved and you have to call in or go online for a decision. I think thats what I tried back in 2012 and they in fact did not give it to me and now its showing on my report. I do want to build my credit but is it worth the try to see if this offer goes through? I wouldnt want to be rejected and then have it show up on my report after all the work ive been trying to make my credit better. I would really appreciate your advice. Thanks so much.
There are many data points that go into calculating your credit score. How much was the balance you paid off for the closed account? How many other open credit accounts do you have (not out for collection)? Are you making monthly payments on student loans, or are those differed?
It is hard to say whether Capital One would approve you now. Probably the only thing different with your reports is the positive of paying off a closed account that was not in collection, so whether the preapproval was based on data prior to that being paid off, or they go to get updated info, it makes sense that they would approve you. If you do go through with applying, request the lower end of credit limit available.
Patricia, did Experian remove the debt as specified on the free annual credit report? I am in the same boat as you and the Experian free annual credit report states my debt will be removed July 2015, but it is still showing so just curious if yours fell off a week after end of Feb or something along those lines. Thanks.
I have back credit card debt showing on my report that the last payment for one was April 2007 & the other was june 2008 I think. I checked my credit report on credit karma and they say they are open & the date is April 2008 balence 992 & the other is May 2010 with a balance of 2901. Im trying to get my score up so im able to get a home loan but because of the I cant. I live in NY state. How do I go about getting them of my credit report if they have passed their sol?
Thank you
Crystal – Credit card charge offs have the potential to stay on your credit reports for up to 7.5 years from the date you last paid.
Start with determining the exact date you last paid these accounts. Also post what the credit reports are showing as the dates these accounts will age off.
From what you shared, one of the accounts may have been reaged to reflect a last paid status of 2010, causing it to stay on your reports for longer than should be allowed. Is that what you are seeing?
Ok here’s what I have found.
on my citi bank
Asset. Acc. is the collection agency
says its schedule to continue on record until Jun 2015
Says it was opened on 3/2010
I know my last payment was jun 2008. Due to moving out of the state. It took me over 6 months to find a new job.
Then Capital one is listed two times.
The original says opened 8/2006
The charge off on April 08 to May 08
They list my last payment August 07.
Portfolio rec. Ass also has this same account listed
The opened date is April 2008
Says it will continue to be on record until Jun 2014.
I really dont know much on this one because last I knew the last payment was April. But I was young & dumb bc this card was in my name but my parents had it. I know I shouldnt have let them it also looks like the account was also opened befor I knew it was…
I also found on the report
Ge Cap.
it says charge off Dec 07 to july 08
last payment was June 07. This account I thought was paid in full it was a pay pal card I must of still owed more then I thought.
what should I do? I really want to fix my credit. Should I make a deal and pay them or am I better off waiting it out? Would it make a difference when I apply for a home loan. Im just confused. Im in my 20s and I dont know where to begin.
Thanks for all your help
Thanks for the follow up details Crystal. Here is how I understand what you have shared:
Asset Acceptance is showing on your credit report related to one of the old collection accounts. Even though Asset Acceptance says account opened in March of 2010, the credit report shows this will fall off in a year. Based on your first comment, it would appear that Asset Acceptance is reporting accurately. More on whether this will impact your goal of buying a home below.
Capital One is reporting to different trade lines? Did you have two different accounts with CapOne? If the credit report entry from Capital One is singular, it should (like the original creditor for the account Asset Acceptance now has) be showing as a zero balance owed to CapOne. Be sure that is the case. Portfolio Recovery Associates has the Capital One account listed as opened in April of 2008, and aging off the credit report in a month or two.
The GE capital account shows charged off. What does it say for a balance owed, if any? Is there any other corresponding collection entry in your credit reports that you can associate with the GE capital reporting?
Buying your home in the next year:
If your goal is home ownership in the next year, and you can qualify with FHA type underwriting standards (credit score thresholds of say, 620 or higher, Debt to income in good shape to afford the mortgage payment, etc.), you could negotiate settlements with the debt collectors (PRA is going to fall off in a month so maybe not with them) and the negatives would be immediately passed the credit reporting limit for paid collections in New York.
If you are not shopping for a loan in the next 12 months or so, you could let all of this fall off and then start your home hunt and mortgage shopping?
Thoughts?
Hi There Michael,
I’m trying to fix my credit score FINALLY! The last activity for my accounts was probably mid 2008, but when I checked creditkarma tonight the collection agencies my listing them opened from 2009 to as recent as 2013.
Midland fund (bank of America)
10/15/2010
Pin cred see (verizon wireless)
6/20/2013
Midland fund (citi bank)
2/8/2011
Ltd fin svc(citi bank)
5/22/2009
Midland fund (citi bank)
2/12/2010
Rjm acq llc (target)
10/12/2009
These accounts were opened in Maryland which I believe has a 3 year SOL and I now reside in Florida that has a 4 year SOL. I’ve been doing a lot of research on the matter and came across your sight. I’m not really sure what the first steps to take would be. I know I’m getting close to the 7.5 but according to the above some are just getting started. Just so you know it’s not really a time sensitive matter, I just want to get the ball rolling to hopefully have something accomplished 6 months to a year from now. I’d really appreciate any and all advice you might have on this matter.
Samantha – I would start by sending a written dispute regarding each account that has been inappropriately reaged on your credit report that will cause them to stay on your reports years longer than should be the case. You want to send the disputes to the credit reporting company that has them on there, and to the offending debt buyer (all of those listed are debt buyers). Send all communication certified mail return receipt requested. Keep a copy of all letters you send, and the green return receipt card in a safe place. Post a follow up comment with what gets corrected on the firs letter volley. Anything not reflected accurately, that still chooses to report after the dispute response time frame, will need some more attention.
I live in Louisiana and I recently checked my credit report. I have a debt that was charged off and the opening date is 11/01/2006. I was told it would stay on for 7 years but as of yesterday. It is still there. How can I have that removed from my credit report?
Kantrell – What was the date you last paid the account in question? The clock starts not from when the account was opened, but from when you missed your payments.
Ok, I see. It says I was delinquent in 2011.
Hi, a collection company from TX called me 2 months ago regarding a car loan I had that was last paid 6 yrs ago and still owed $9000. The car was already repossessed. I got scared and made payment arrangement. So paid them $300 down then $50 a month. Then I checked my credit report and it shows that this acct is already closed. I looked up this company online and saw lots of complaint against them. And that the company already filed chapter 11. Also, everytime I call them, they never answer the phone. I was thinking to stop making payments since I don’t trust them. Can they still go after me even the acct tho is closed? What should I do?
Paula – What is the name of the collection agency? While you say the account on your credit report is closed, does it still show a balance owed?
Commercial recovery system is the company. I use credit karma for my credit report, and it does not show any balanced owed. It just say it’s closed, and payment status is 0%.
I suggest you talk with an experienced consumer attorney with fdcpa, or collection defense experience. I can email you contact info to some if you post a reply with the name of a large city near you.
From the information you shared, the deficiency balance on the repo was passed the SOL for you to be sued, but not passed the SOL for it to appear on your credit reports. You may have reset the SOL to be sued for collection (not for credit reporting purposes) by making those payments. But talking with an attorney about all of this will help you make an informed decision.
I’m from Reno, NV. So I would say Las Vegas?
And also, with them filing chapter 11, can they still legally collect money from debtors? Cuz I read some comments on other site that any collection actives against them should stop. And is there any way I can find out the exact date of the last payment I made? I think the place I got my loan is already closed.
Not sure on the chapter 11 preventing them from collecting. It may depend on whether they are liquidating, or reorganizing.
What does your credit report say about the date of last payment?
I don’t kno about the lasts date of payment. But it says it was opened on April 2007 with a balance of $7021. Then it was opened on March 2010 with a past due of $5217 and it was charged off. I have no idea what means. I would say it was last paid around middle of 2008.
And also I saw that some of my credit cards was opened 2009-2014. But I haven’t use any since 2007. Or maybe even before that.
I meant it was reported on July 2010.
Michael in this site, you’ll read under the subject “Does partial payment restart SOL?”. It says that even with a partial payment, in some states, it doesn’t restart the SOL unless the agreement is written. Which we didnt have. Only by phone. But it also says this “Please review the exact state statutes and the fine print associated with them before relying on this website’s info. Your situation may not apply.” Where can I find the exact statutes?
Paula – Ideally, you will want to talk about this with an attorney whose practice is active in this area of law. You can read legislation, but may interpret incorrectly, or case law in your state may have developed to a place where you have more strategic options than a statute can imply.
What is it you meant by “in this site”? I do not recall responding to a reader, or writing an article that covers the topic in the way you have quoted.
I’m sorry. I tried to copy the link to the site about statute of limitations for debts.
Paula – The comment you posted with a link to credit info center went straight to the spam folder for the site. Not sure why.
Paula – After sending you contact details for the attorney in Las Vegas, and the one dual licensed with a practice in California and Nevada, I sent another with details for a Reno attorney.
Thank u so much. I will definitely call one of them. I just really want to fix my credit. But I kno that it’s gonna cost a lot to settle since I have other credit cards that was closed. And me and my fiancé r planning to get married soon, but now I’m not sure if that’s a great idea. We bought a car together 5 months ago with credit scores of 575 for me and 576 for him. Since then my score went up to 605. The loan is for 54 months. And were planning to pay it off before the end of the year. So it’ll be paid in less than a year.
Just curious what kind of car did you buy? My score is a little higher about 600 and I’ve always been so scared to even attempt to try to buy one. Maybe I’ve been freaking out for now reason lol.
Hi Michael!
I am currently in the beginning phase of trying to buy a house with my boyfriend. The mortgage consultant said that when we come to possibly closing on a house, old collections could come back. Is this true? I have had several that have dropped off all my reports and haven’t reported again for over a year or two. It has been some years since I have even received a letter or phone call from an agency to collect a debt. We live in Idaho and I am not certain on the limitations the state or even Federal gov. have in place. I keep hearing this 7 year stuff and thought I would be safe. Any help would be appreciated! Thanks!
JP – Were any of the collection accounts lawsuits that resulted in judgment? If not, you should be in the clear if the collection accounts went negative more than 7.5 years ago. You can pull your credit reports and take a look at what a mortgage lender is going to see. Post an update with what you find to the comment string here.
None of them were lawsuits that resulted in judgment. I had my report pulled on Monday and none of the accounts that are older than 7.5 years are on there. So I shouldn’t worry that somehow they will come back? Thank for the reply!
Actually JP, you should worry. The error rate with credit reports is high. I encourage you to monitor your credit reports every 4 months by pulling a free one from Equifax, followed by your free report with Experian 4 months later, followed by pulling TransUnion’s free credit report 4 months after that. Then repeat that process. You can do this through the website the major credit reporting companies set up to comply with federal laws requiring them to give you access to 1 free credit report every 12 months: https://www.annualcreditreport.com/index.action.
I hope nothing pops back up on your reports, but if it does, post an update here and lets go from there.
Hello Michael,
I am trying to clean my credit. I live in California and I just ran my credit report and I show 3 credits that are still on my credit. One has offered to a deletion from my credit if I pay the full amount, is that true can they completely delete that from my credit report?
Jamie – There are some instances where a collection account could be deleted by the collector or creditor reporting it. It is rare to have one solicit that from you in their collection efforts. So rare, in fact, that I would caution you to be absolutely certain you are dealing with a legitimate debt collection outfit. What type of debt is this, and who is the debt collector making the offer to remove credit reporting in return for you paying them?
Hi There Michael,
I recently paid off two debts. One on February 18th and another got paid on February 24. They were both reported to the credit agencies as paid in full on March 18th, but they are still showing as non paid on my credit reports. How long does it typically take for reports to be updated as paid in full?
Thanks, Coreen.
Coreen – Can you be a bit more descriptive and detailed with what is happening with on your credit reports regarding the two collections?
Who is reporting? Did you pay the full amount to the collectors,or did you negotiate a lower pay off? Are there entries from the original creditors you are questioning, but the collection agency you paid the money to is showing correctly?
Your comment above is contradicting.
Yesterday I applied for a car loan and was told that I have a repossession from 2002 on my credit report. At the time I lived in NJ. I thought that a car repossession fell off of your credit report after seven years?
Lavon – Repo’s from 2002 should have fallen off your credit reports several years ago. Pull your credit reports and tell me if they are showing a deficiency balance being reported by a debt collector as a result of the repo, or if it is the original finance company still reporting. Either is a problem, and should not be happening. And both can be handled effectively with some disputes, and perhaps by filing some complaints too.
There definitely is no balance. I actually bought the car back a few days after it was repossessed by paying the balance off in full.
Thanks. So it is the original finance company showing up on your credit reports then?
Yes it is, its the bank who held the loan.
So im trying to get a house and have been cleaning up my credit for months now. I realized that an unpaid credit card (capital one) has fallen off of my report. I havent spoken to them or the collection agency (forster & Garbus LLP) at all. They sent me a letter today telling me I need to pay and that they have a settlement for me. Can they sue me or go into my account and take my money even though its fallen off of my credit report? Or should I just ignore them? I am in rochester New york and im not sure what to do. Please help.
Jessica – What is the date of the last payment made on this account?
Michael,
I dont recall the exact date but it was in 2005. Plus, the letter they sent me has no details on the account and it says they have a settlement for me but it doesnt say what it is. It was also dated as March 31 and said it should be paid on March 31 but I didnt recieve it until April 10. Im just so confused on what to do because I dont want it to magically re- appear on my credit report.
The way I read your situation:
You last paid Capital One in 2005. The limit for a negative to remain on your credit reports, and the SOL to legitimately be sued for collection in New York, would have passed. If anything does reappear on your credit reports regarding this account, post an update and lets go from there.
I just pull my credit report and noticed that I have a past due Credit card on my credit report from 2006(open date), I also have a collection agency on there for the same bill but the open date for that is 2013(open date), Is the collection agency able to sue me? should I just pay on it or can I depute this?
Sara – What state are you in?
2 years ago I was notified by GA Dept. of Labor that they had overpaid me nearly $8000 in Unemployment Benefits. I did not have the money to repay this amount. I just received a letter that I need to pay $440 a month towards my dept or they will send it to collections. I cannot pay that either…I’m still unemployed. My questions- Will this affect my credit score? If so, how much will it affect my score? What can they do? What can I do? I have very good credit and hate to see this ruin my record since I had no way of knowing they were paying me incorrectly for 8 months.
Casey – If this winds up on your credit report it is going to hurt your score, ability to qualify for loan products, and the price you pay (interest rates) on loans, and for some time. Have you talked with them about any other payment options? What was their response?