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.
Forgot to mention my two collection judgments are school loans. One was from 2008. Other was small so I paid in full and was opened in 9/ 2012. Removed 7/2019
I have four school loans that have the same acct number with different amounts of money showing. Is this right? Also these were opened in 7/2009. And is suppose to be removed 6/2016.
I’m trying not to be excited about finally getting a fresh start. Hoping my credit score will go up after these are off my reports. And I can finally have a fresh start. My score is 599 and I have one secure credit card paying on time. Just opened. Don’t want anymore!
File a credit reporting complaint with as much detail and chronology as you can with the CFPB. Complaint page is here. If the account you first posted about above persists, post an update after the CFPB investigation results.
You should try to come up with a plan to deal with the remaining judgment. The balance is likely growing from interest set by the court, and often gives the creditor extra ordinary collection methods like bank levy and wage garnishment (how much or if at all depends on the state you live in). And thought the judgment may age off of your credit reports, it is still enforceable, and for much longer than how long it shows on your credit. It will still show up in public records, and may still hurt your ability to get a home mortgage etc.
The one civil judgement I owe $3,540 Date Filed 03/2008 Date updated 06/16/2008
Will be removed 02/2015
This is my only judgement. You said this one won’t just fall off as it says? This originally was owed same date as the other school loans since 2005. All of them are over 10 years old.
I am an Oregon resident too if this helps.
Judgments fall off of credit reports. What I referred to is that just because it is off of the credit report, does not mean it cannot be enforced (collected on through lien, levy or garnishment), or located through public records search, and hold up something like of new home purchase. Judgment debt in Oregon is good for ten years, and can be renewed for another 10. Government backed student debt remains collectable for, well… ever for most people (but DOE does offer different solutions).
While your credit is improving, and will continue to with all of the awareness and effort you are putting into it, there are still some concerns.
If you would like to know more about your risks of collection, post details about the judgment, and include the fact you are in Oregon, over on this page: https://consumerrecoverynetwork.com/question/social-security-pension-state-exemption-debt-collector-garnishment/ – I can respond with what exemptions there are from judgment creditors collection efforts.
oops maybe I should of not put the collection info. Can you delete that part?
I am having a huge problem with a gas company (for heating). I have in the passed disputed that we originally closed our account, but could not prove it (lost papers since we move so much.) We should of never owed this money. But, my complaint is they keep changing the original date of payment of default. I had to send a letter a few some years ago because they changed it to a new open account. Now they are trying to get away with it again.
The original date of collection should be 2005. This has been in collection since my first born was 2 or 3 years old. He’s 10 and half now. This account needs to be deleted. The original date placed for collection is a lie. They will also not work with me to pay off the debt of $608. I have tried to ask for payment plan and they were rude, very rude and cold. I do want to pay this off. But they just need to be honest.
Also, most of my bad collections are either paid off and are since 20o8 or 2009. When will they be gone? Other two are judgement. One paid in full and the other still open says till 02/2015.
[edited to remove collection account details]
Responsibility: Joint Account
Account Type: Open Account
Loan Type: COLLECTION
AGENCY/ATTORNEY
Balance: $608
Date Updated: 02/05/2014
Original Amount: $469
Original Creditor: [edited to remove collection agency]
CO (Utilities)
Past Due: >$608In CollectionPLACED FOR COLLECTION<
Estimated month and year that this item will be removed: 06/2017
Thank you, Michael for your reply. I was unable to get a hold of Equifax, so I am going to have to wait until Monday. I was very stressed out by the letter from Dynamic Recovery Solutions because they had stated that if I send them a letter will not make the debt go away if I owe it, they will not contact me again however, they will take a specific action against me. They expect a payment from me by July 12th, if I dispute the validity of this debt they will assume that this debt is valid. I really believed, and thought that if it was more than 8 years, they would write it off. Also, they also stated that if I don’t pay, they will impact a negative report on my credit score, which upset me because I came this far to reestablish my credit. If I recall correctly, I did stop paying them over 20 years, but to be certain, it was fairly over 17 years.
You suggest that I send them a letter to cease communication, can Dynamic really impact negative report on my current score? That is what scares me, as I mentioned that I have came this far to reestablish my credit, starting over. It would be very unfair for them to do this to me, especially when I already had negative score for so long. Is it possible for us to get negative report again for same debt from years ago? Thanks so very much in advance. I will keep you updated on the identity theft. I won’t know until I get a copy from Equifax.
Sassene – I am at a disadvantage without being able to read the letter you refer to. What you say it says would suggest to me that their are collection violations in that letter. But they are so blatant that I would want to review that.
Post the name of a nearby larger city and I can email you contact details to an attorney close by with the experience you need. Call and consult with them about the letter.
Thank you Michael, I live in Los Angeles county, so I would say Los Angeles, California. I reside in Compton, CA 90650. I was able to get a hold of Equifax through VRS (Video Relay Service, sign language service) so they told me that I will be receiving the report letter within 7 to 10 business days. I appreciate your input, and thanks once again.
Hi Michael,
I reside in California, I came from a very abusive background, I was a very naive, and vulnerable young adult at that time. I did not know any better, I acquired credit cards to help my family. My parents who abused me, have used my credit cards, and when I decided to stand up on my feet to cut them off from using my cards. They refused to continue to pay their debts which resulted me in not being able to pay for them. So I sort of ignored the creditors, now it has been over 22 years, I just finally started to rebuild my credit last year or so, then my 20 plus years debt showed up today which threw me off guard. According to this letter that I received, it threatened to impact my current credit report with negative report if I fail to repay. It was from the bill collector, I don’t know what to do at this point. I was told that it would go off my credit report after 7 plus years. Now this letter, how can they give me negative on my current report after I already had negative report for so many years? What should I do? Should I dispute or write them a letter to tell them to leave me alone? Thanks for your help.
If I were certain that the debt is one from that far back, or otherwise know it has been more than 7 and half years since a payment was sent in, I would send a letter demanding they cease communicating with me (send certified mail return receipt). If anything did show up on my credit report, I would consult immediately with an attorney experienced in collection violations, and fair credit reporting. In fact, if the letter you have is making a direct reference to harm your credit, and you have not read more into what is being stated, I would talk with an attorney about the letter now, and before sending a cease communication, or any other letter.
What is the name of the collection company?
DYNAMIC RECOVERY SOLUTIONS, I am not quite sure if you would receive my in depth reply via email, but I replied. I had to Google the original creditor to see what credit card it was regarding to. It went back that many years, because I have not used that for years. It was bought off by another owner so is it then now not valid debt?
I did get your email. I am going to respond to that here in the comments. Please keep everything in the comments on the site so other people can follow along and pick up anything useful they may use for themselves.
Equifax asking you to match up credit information it has in its file as a security question, and that process failing to get you access, does not necessarily mean someone has used your identity, or that the Target credit card you have is part of the data breach that was highly publicized, etc. You need to get a copy of the Equifax credit report and verify the auto loan taken out in your name in 2008, and the mortgage from last year. It could be a mixed file issue, or something glitchy with the web security structure, or something else. You may find that your identity was stolen. But until you get that sorted out, there is little to file in a police report. And you need the details from their file in order to dispute what could clearly be inaccurate credit reporting.
As for Dynamic Recovery Solutions appearing as an inquiry on your credit report, that is normal. Debt collectors can continue to collect on legitimate debts long after the debt fell off your credit files. The debt collector will often make credit report inquiries to judge whether you are someone who is now worth trying to collect from because the report shows evidence that your finances have improved (you have new cards you are paying on since 2010 etc). DRS is not reporting a collection account, that is the main concern I had.
You can still send them the cease communication letter. The verbiage you shared in the email you sent to me does not suggest DRS threatened negative credit reporting if you did not pay them. If there was something threatening like this referenced in the letter that you did not share in your email to me, please post that here. But there is nothing to dispute on your credit reports regarding Dynamic Recovery Solutions reporting a collection account, based on what you shared with me.
Send the cease communication letter to Dynamic if you like. It will stop the letters, and any phone calls they might make to collect. And this far along, where you cannot be legitimately sued for collection, and the collections cannot show on your credit reports, there is no risk. Be sure to keep a copy of any collection letters you get, or letters that you may send. Use certified mail return receipt requested when sending letters to debt collectors, or credit reporting agencies for that matter.
You can write to Equifax and request a copy of your credit report from them. You do not have to rely on the web site.
If you do find evidence of identity theft, post an update and lets go from there.
Hello
Date Filed or First Reported is that the very first time that a debt was reported or just reported through this collection agency?
I had a cellphone that I called and told Sprint i was moving to mexico and there was no service there. Apperantly they didnt cancel my service and now im stuck with 230.00 debt. But this was way back in 2007 im back in the states now and i seen on my credit report that they filed a collection with CONVERGENT OUTSOURCING Date Filed or First Reported 01/2012. Why did they wait nearly 5years to report this had they did it in 07-08 it would of be falling off this year or next. So my 7 years start after 01/2012?
thanks in advance
First reported would be specific to the furnisher, in this case the debt collector for Sprint. The 7 year reporting limit for Convergent Outsourcing is the same for the Sprint entry.
Continue to watch your credit reports. And keep copies that you have in your hands now. When it comes time for the Sprint entry to fall off your credit, make sure the Convergent item disappears too. If it does not, post an update and lets go from there.
Hello,
I received a huge medical bill from giving birth to my son and the collection agency is calling me telling me that I need to pay it in one lump sum and I just do not have that kind of money. I explained this to them and they are making it sound like even if I get put on a payment plan through them that this can still show up on my Credit Report. How can I avoid this showing up on my Report w/out having to stress about paying the entire thing at once?
How long ago was it that your son was born?
Have you talked about payment options with the medical billing company for the hospital or doctor office?
Ideally you want to work with the service provider or their billing company when setting up affordable payments. Some hospitals are required to write off a certain portion of services to patients that qualify based on low income parameters. Do you know if your bills qualify? You can ask the service provider directly.
Working with the original lender and coming to an agreement, before any medical debts show up on your credit report, can often mean they never will.
We are trying to buy a house and they pulled our credit report, we have sonething on our credit that is supposed to come off our report this month…(we didn’t know that)…my husband had contacted the company to see how much we owe, because we had to file taxes on it and we thought hat we paid it off, but apparently it was just the taxes that we had to not come off our claim…with us contacting that company will it not come off our credit report this month now
If a debt collection account is set to fall off your credit reports, calling the collector that is the source of the information will not change the date it comes off of your report. Even paying an old bill cannot cause it to stay on your credit reports longer.
Hi, I had a contract with T-Mobile in 2010 i cancelled the contract before the end so had the termination fee which I disputed the amount with them but got no where and so apparently T-mobile sold the debt and it is obviously not close enough to the 7.5 year mark to fall off. My issue is that the original creditor (T-Mobile) is not showing on any of my three reports but there are two collections agency’s showing up with two different dates, same amount but with two of them the debt shows to be over 4,000 what should I do about this?
Kris – Are both collection accounts showing an amount due and owing as of right now?
Who are both companies reporting?
What was the balance owed immediately after cancelling with T-Mobile?
I have been paying the hospital for services I received during 2012 and 2013. The bill is about $1,500 and I have been paying $15 per month. Can the hospital turn me over to a collection agency or report anything negative on my credit report? They recently sent me a letter saying to contact them before they sent it to collections. I thought as long as I am making an effort it could not go on to collections or on my report. I will contact them but want to know if they can actually do that while I am making payments.
Thank you!
Cheri – It is common for debts that are only receiving partial/smaller payments to still get sent to collections. If you do not have an agreement to pay less than the minimum due, or some other payment arrangement, lenders and businesses will follow often treat those accounts just like they do when they are being paid nothing.
Call them and see what you can work out. Post an update with the outcome.
Stafford loans, judgment or not have no SOL. They probably didnt sue on it for about 10 years and then could have renewed the judgment. You will not get a house until it is paid in full.
I’m trying to get a loan for a home. The loan institution has gathered my credit report. They have found that I have a judgment against me from a Stafford Student loan. My youngest child is 23 years old, I believe I had this loan when she was around 1-2 years old. I did not pay this loan off, but with it being 21-22 years later should this still be showing on my credit report? I’m thinking the loan was with another company many years ago. Unfortunately I do not have any of the paperwork. Thank you!
What is the date the original judgment was granted in the court? What state are you in?
Your consumer credit report may not be how the loan officer found the old collection account. Judgments are a matter of public record, and underwriting can access that information other than from the major credit bureaus.
Hello Michael, thank you for your response the other day! I have another question. Originally I only had my transunion report but I decided to pull the other 2. Low and behold I have other accts in collections that were reported to the other 2 and not transunion. One in particular is total bs and I would like to know what should I write in my dispute letter. The acct is owned by quality something something and they are saying I owe them 3400. Here’s where its from. In 2009 I moved into an apt called Highland Woods in GA my lease was from Jan 2009 until Jan 2010. The apts were so crime infected (my car was broken into) that I moved Jan 1 2010, not staying that last month or paying that last mths rent because I used it to move. I figured they would just take my deposit. I paid my rent that whole entire year, except for the last mth. My rent was $600 and my deposit was 600. There is no way I owe 3400 from 600! I talked to a credit counselor and she asked did I give 30 day notice to leave and I’m not sure. If I didn’t give a written noticed I know I voiced that I was leaving because my car was broken into etc etc. but they are definitely janky and it my word against theirs. She said they could have automatically rolled me over another 6mths knowing I left and charged me even though I wasn’t physically living there. She said they have to have records of my lease and payment info so to call them. When I looked them up to call today, they changed the name, then I found a article that in 2010 the owner Miles properties filled for chapter 11 bankruptcy owing 21 million! Now I see why they may have screwed me! Now I can bet my last dollar that they don’t have my lease info or paper work to prove I owe them that amount! Should I call the collection agency that now owns the debt or just bypass them and write the credit bureau with a dispute letter? When I write the CB should I say, the acct shown here xyz does not belong to me, please verify this acct and that I owe this debt of 3400. I would like this debt to be removed from my report. Thank you. Any info helpful! Thanks guys
If you are going to go with an “account not mine” strategy, I would not elaborate in any way at all if it were me. I would just say this account is not mine. I would copy the credit reporting agency and the information furnisher.
Hi Michael
I just received a call from a collection company trying to collect a debt from years ago. The debt was originally from American General and then sold to Springleaf. I have not received anything reguarding this debt for many years up until recently I received a letter from LVN funding and that’s who is trying to collect but I received a call from a different company saying they were going to report back to LVN. I did not agree to owning the debt or anything concerning the debt, I told him I have not received anything about the debt for at least 6 years. The loan was taken out while I was living in PA and now reside in VA not sure how the SOL’s work for these states? Also he said the last payment was Dec 06. At one point LVN funding showed on my report but according to CreditKarma there is nothing bad and I currently have a 746. What should I do? and What can I do?
Archie – It sounds like the debt is too old to show on your credit reports any longer. And with a last payment date of December 2006, is passed the SOL in both Pennsylvania and Virginia to sue you for.
There is literally no legitimate leverage left for a debt collector to use in order to illicit a payment from you at this point. That does not mean the debt goes away, it is still legitimately collectable. What is your goal with this account?
I would like it to go away, I just pulled my transunion report and it shows as normal account opened 1/30/2006, balance $0 with a high balance of 3500. I know different reports show different things. Creditkarma had it listed a few months ago with LVN as the collection company but now there is nothing there as well. There was no collection account and no missed payments but I do know that its a delinquent account after the moving to and from I totally forgot about it and now its so long ago and they are trying to collect 5k or so on debt that was not for that amount. Just looking for the best advice all traces should be off my report or a least coming off correct? What would be the best thing to do with it? I have worked hard to get my credit to where it is now and want to keep it there and not have anything bump it as my wife and I might be looking to put a addition on our house and I am currently not on the mortgage.
It has been longer than 7.5 years since the last payment than all credit reports should have already removed any entry regarding this collection account.
If it were me, I would send a written dispute letter to all credit reporting agencies indicating this trade line is too old to appear on your credit reports. Send a copy of your dispute to any creditor or debt collection company who is giving the dated info to the credit bureaus. Use certified mail return receipt to send your letters. Keep a copy of your letter, and the green return receipt cards organized and in a safe place. If the out of date credit information is not removed on the first go, post an update and lets go from there.
Hi Michael!
First, I want to say how wonderful it is that you take your time helping people with their questions and problems. I am very thankful to have come across your website and would truly appreciate your advice. I pulled my credit report from Credit Karma today, and I discovered that I have one account in collections. I would have paid this if I had known about it but no one has EVER reached out to me about it. I asked my parents if they had ever been contacted because I was in college out of state when it happened. My home address was the same as theirs and they never were contacted.
Here is the information:
Current and original balance: $160- I can pay this now with no problem
Collectors: Merchants Credit Assoc.
State: I lived in Illinois all my life but moved to Missouri a few months ago. The account is in IL
Date Opened: March 3, 2010
Date Reported: June 10, 2010
This is an old medical bill that I honestly do not even remember. I have always had health insurance and have never had any major medical problems- just typical check ups so there is a possibility it was a mistake, I guess. I am not certain either way.
What I am asking is for next steps. My credit is fine and this is the one problem but any improvement is going to be helpful. Should I pay it? Or will it go away within a certain time? Is there a chance that if I don’t pay it, the collectors could report it again so it will be new and never fall off my report? If I pay it, it won’t help my report any, right?
Also I took a look at my accounts and there are two credit cards I don’t recognize. They say CB/EXPRESS and CB/ BUCKLE. I know those are two clothing stores, but I rarely if ever shop at either. Buckle I have been to once in my life and I would never have opened a store credit card. They were both opened in 2008. Everything is listed as $0 under these accounts- I owe nothing and have never spent anything, etc. I also don’t have the physical cards, so again, I am not sure how these were opened. However, I was young so I could have overlooked something, unknowingly. Does this hurt my credit?
Any advice is appreciated.
Please let me know if you need anymore information and thank you so much again.
Because you are fuzzy on the details of the medical bill, I would first want to know more about the debt, the dates incurred, services rendered, etc. This may be an error of some sort, and if it is, the result of correcting the medical billing error may be the removal of the collection on your credit reports.
Start by calling Merchants Credit Associates, or the service provider, and get to the bottom of this. Post more details as you learn them.
On the Department store cards you see on your credit reports… close um if they are truly yours, and you do not have any intention of using them. It could be one of those things where you walked in and bought something and were asked if you wanted to save 25% on your purchase today by opening an account, followed by data entry errors from there. But it could be an issue where the credit reporting agencies are mixing files with someone who has a similar name, or other identifiers.
Have you only checked one credit report to verify these entries?
Have you access your 1 free credit report every 12 months directly from the 3 majors?
Hello Michael! Thank you for responding. I currently live in Columbia SC. I moved back here (born and raised) from Atlanta GA Oct of 2013.
Thanks. I do not think you are at much risk of being sued at this point. And because the bulk of these debts are set to fall off your credit reports shortly, if it were me, I would wait for most to drop off, rather than shell out a good amount of money for little credit recovery.
It is not clear to me that LVNV is reporting a newer date causing their entry to start its 7 year count down from 2013. That may be when LVNV got your account from some other debt buyer. If the LVNV, or any other debt collector now reporting, does not fall off from your credit reports at the same time the original creditor charge Goff’s do, that will be a quick fix, and a quick credit reporting complaint to the CFPB if your original efforts do not yield the correct result.
The incorrect balance reporting by LVNV on the other account is, in the overall messy credit report picture you have, not hurting you. But include this dispute if you like when disputing any of the other incorrect collections.
I would dispute the smaller balances if you find anything wrong with them, an not just because they exist. If any smaller collection accounts,or bigger ones for that matter, are set to stay on your credit reports for more than, say 18 months, I would consider negotiating a lower pay off and settling them (unless you plan on purchasing a home in that time frame). Small balance accounts do not often settle for any significant savings. You can read more about that here: https://consumerrecoverynetwork.com/credit-card-debt-to-include-in-settlement-plan/
Negotiate settlements for the best savings wherever possible. Any expectations for, or getting hung up on, a pay for delete strategy will not yield much of anything, and even if you were able to get a debt collector to agree, it is not likely to help your overall situation because of how much is going on.
Here is my thinking on working with or hiring Lexington Law for credit repair: Only do that if you are not going to do this yourself, or you know that you have a tendency to start projects and lose interest quickly. This is something you can do for yourself, but the letter writing, tracking, and responses, will be a project. But tracking things to the point you have already has been one too, so you know that.
Lexington Law is one of the only places I would send people to for credit repair. They are not overly expensive, and fill a niche in the credit recovery market place when people cannot or will not do this for themselves. Just know that they are probably not going to get all this stuff off, and that you should negotiated and settle the debts you want to first before sending in credit reporting disputes.
I would get the secured credit card to start to build that account history as soon as you have settled the collection accounts you are going to. Debt collection companies can often see what is going on with your credit real time. New stuff makes it look like you are more collectable.
Hello Michael I have a couple questions for you. I’m 27 yrs old and yesterday I was denied a apartment application which in tun was my 1st steps in rebuilding my credit. I was in the military at a young age and did alot of stupid things (taking out loans for other people, not paying cellphone bills or credit cards). I did the free report from creditkarma and they pull my report and score from transunion. My score is a poor 536. I have 11 collections. I have roughly 11k in school loans from Sallie Mae (payments start in June, I want to make sure they don’t default) and about 2300 left for my car loan (originally 20k starting back in 2006 ). I have no credit cards.
1st question. 2 of my collection accts are from LVNV funding. First one is from Equity One. This loan was made in 2006 for 6,500 from American General. I took out 4k in Nov/Dec 2006 (the stupid mistake for someone else) and another 1500 like in Sept 2007 totaling 6500. I have not made a payment to this account since 2007 because the person who i took the loan out for stop paying. The younger me refused to pay for something I didn’t use, but I took it out and it’s affecting me so I have to take care of it regardless. LVNV is reporting that I owe them 7500 with a date opend of June 2013! That is totally false. It says the orginal balance (i’m guessing from Equity One, i think they bought American General) is 6725. My question is can they do that??? It seems they are re-setting my SOL 7 yrs clock. Shouldn’t that collection fall off 2015 regardless of them saying newer dates? The 2nd collection LVNV has is from my original debtor Credit One Bank for a credit card. The amount I owed is 603 and was from 2007 but LVNV says the balance is 1135 with a opened date of 2009! Totally false again. Should I dispute this with the CRAs or just wait until 2015 after the SOL and dispute it then for them to take them off?
2nd question. These are the collection accts and amounts…474 medical bill, 7500 LVNV funding, 113 Uhaul bill, 1135 LVNV funding, 420 medical bill, 405 storage unit bill, 2081 Broke a apt lease, 557 capital one cc, 363 medical bill, 93 progressive ins, 74 library books. Some of these are really low that I could pay them off (113, 93, 74). The other amounts are low enough that I can pay then with my tax refund. 3 of them should fall off soon due to the 7yrs (7500, 1135, 557). Should I go with a company like Lexington Law first to try to get some of these disputed and taken off? Should I pay the full amounts or try to ask for a settlement? Does it even matter with collection accts if they are paid in full or settled in terms of my score? I understand even when i pay them, they will still show as a negative mark. Can I ask them to remove it in good faith (yeah I know i’m really ambitious)? Are there any ways to get these collection accounts off my report other than waiting the 7yrs?
Last question…Will getting a secured credit card right now be beneficial for me, even without paying those collection accts off as of yet? I don’t want to wait until next march for my tax refund to start being proactive. Although I can’t pay the bigger amounts now, will getting a secured card help me (my score) anyway? Also when my car is paid off, will that help? Thank you so much for taking the time out to help me out!!
Ashley – Before I go into more detailed feedback it would help to know what state you are in, and if you have been there for more than a year?
I need help.
My husband has an unpaid phone bill from at&t. It went into collections May 2008, so it has already been on hjs credit report before. We just checked his credit and now they are showing the collection account date changed to March 2014 which caused his credit score to go down again. What do we do to fix this? I know they arent suppose to do that right? Thanks.
Dispute the delinquency date with the credit reporting agency that the collection is appearing on. Send your written dispute via certified mail return receipt requested. Post an update with the result of that, and if necessary, lets go from there.
I have a debt from a cable company that is 9 years old but the date on the credit report shows 6 years old. What can I do about it? I’m in Arkansas.
What is the name of the cable company reporting it, or is it a debt collector showing? Is this showing on all 3 credit reports? Have you disputed the credit entry in writing with the bureaus that have it? How about with the cable company (or debt collector if that is the case)?
So we got scammed in a timeshare in March of 2009, I tried to get them to cancel but they wouldn’t, I told them I would never pay them another dime until they recitifed the situation which they never did. BUT they did stop sending us bills, we have never received another bill since 2009. But of course it’s on our credit report as serious delinquency. I was told that at some point I can get it off my report…when would that be? I am in the state of WA. We will not ever pay them, I told them I would file for bankruptcy before I ever paid them another dime. We lost $5,000 when we signed up and I told them that was all they would get. We got screwed. But they have never tried to collect again on it.
The time share loan delinquency on your credit report should age off after 7 to 7.5 years from the date you first missed payments… similar to how a credit card would fall off your credit reports were you to stop paying. That could change if you were sued for collection and a judgment entered in the court. That would breath new credit damage into this situation. But like you said, no one has made any efforts to collect, and that does happen. If anyone does contact you for collections, post an update, and lets go from there.
Curious… what was it the time share company did to screw you over?
Actually it says it will fall off in 2/2016. But it says updated 5/05/2014. What is updated? They don’t send me bills. It does say account info disputed by consumer. So do I just wait till 2016? Or is there anything I can do?
If you do not want to pursue the issue more than you already have, just wait for the time share to fall off of your credit reports.
You have already disputed with the credit bureaus. You may be able to escalate this if there were false, misleading, or deceptive angles to pursue. I am curious about that.
There were false, misleading and deceptive angles, first was, my mom had a time share with them too, and they were going to roll hers into ours so she wouldn’t have to pay on hers anymore. They didn’t do that. Then they don’t give your paperwork, they give you a CD and by the time you get home to read the fine print the time to cancel has expired, I think it was like 5 days, but we were there 7. So in Mexico, you have no documents to go over. They completely lied to us. But how do I prove that?
Oh and I did not dispute with credit bureaus, I only did with the resort recovery solutions, I sent them a certified letter, told them it was fraud what El Cid had done to us and we were not going to pay another dime. So should I dispute with credit bureaus, or will that reopen the case. A part of me just wants to lay low and have this whole, horrible, stupid mistake on our part just go away.
So it was not a financial transaction with a US based company?
One path to follow would be to file complaints with the CFPB. I could view your situation as part of a credit reporting complaint, but if not a US based transaction, would file a dispute with the credit bureaus that have this on your reports. If the situation is not resolved, then file with the CFPB.
I hear you on letting this lay fora couple years until it is over. Many of us would choose to do just that. And if you have no major financing goals until this collection falls off of your credit, it will not be a big deal.