is it true that if you owe a credit card for longer than seven years and it will automatically be deleted?

Question

I did not pay for my Wells Fargo credit card about 7 years ago, I recently started to get phone calls and letter saying I have to pay off the balance, and they offer me a 50% off the original amount, should I pay for it? If I don't pay for it, will it stay on my credit report?

The debt was orginally from California, and now I have moved to Indiana. Does that mean I am out of the SOL?

I believe that Wells Fargo has sold my account to a collection agency, so when will it be deleted off of my credit report?

Answer 1

Goodness!!

This question has two parts to it and these folks got it a bit twisted.

First, according to Section 605 of the Fair Credit Reporting Act, no derogatory item may appear on your credit report for longer than seven years with the exception of tax liens and bankruptcies and some federally subsidized student loans via the Department of Education.

Please note that the measurement date IN REGARDS TO YOUR CREDIT REPORT is the date the item was first reported delinquent to the credit bureau.

So, seven years from when it was first reported delinquent!

Let me be clear.

The measurement date for the 7 year time horizon:

Is NOT the date you last paid the debt.
Is NOT the date of last activity.
Is NOT the date the bad debt was charged off.

Now, as to the second part of your question, you are legally liable for the debt depending on the statute of limitations for the state in which consummated this credit agreement with Wells Fargo.

IMPORTANT: Making a payment to the creditors before the statute of limitations has passed will create a new measurement date [date of payment] and provides creditors with another "statute of limitations" period to attempt to collect the debt.

Please be aware of this likely scenario. If the statute of limitations has not passed, the creditor could obtain a judgment against you in civil court and then that court judgment can stay on your credit report for seven years. However, the original debt from Wells Fargo will drop as per Section 605 of the Fair Credit Reporting Act .

The judgment gets 7 years and the old debt is removed.

Lovely world, isn't it?

Answer 2

I agree with the other posters that recommend you find out what the statute of limitations (SOL) for collecting is in your state.

It probably is a junk debt collector that is calling and writing.

If you are out of SOL, send them a debt validation letter then after they respond or 35 days (whichever comes first) send them a SOL letter that includes a cease and desist.

The account will fall off of your reports 7 years after you first became 30 days late and never brought the account current leading to the charge off. After that period, it cannot legally be put back on.

If the account is almost 7 years now, send a dispute to the bureaus saying - "obsolete, please delete".

++++++++++++++ edited for added info

Statute of limitations for COLLECTING A DEBT:
California - 4 years - last item state, which means once an account has been closed to further charges, any payments do not extend the SOL.

Indiana - 6 years - collection SOL from last charge or payment on the account

If it has been longer than 6 years since you made a payment, then you are out of the "collecting" SOL.

REPORTING SOL is 7 years:

Look on your reports they will show the date it is supposed to be removed.
The reporting period starts at the first time you became 30 days late and never brought the account current leading to the charge off (which is the compliance date).
(Be sure to go by the Original Creditors tradeline for the date, not the collection agency's.)

You can also look at the DOLA and count back 180 days (6 months) for your compliance date.

If you want confirmation of the date, contact the credit bureaus and request the "compliance date" on that account.

Neither the original creditor or the collection agency can legally report past they 7 year "reporting" statute of limitations.

I have included a couple links to the FTC, you might want to read them. They explain the compliance date and reporting periods.
Pay special attention to the first link (you to DaMan)

Answer 3

The debt can be collected as long as it is outstanding. There is no time limit unless the credit agreement has one. Failure to pay an obligation can show up for 7 or more years on your credit record. Longer if the lender keeps attempting to collect. You have 3 choices. Bankruptcy, serious step not to be done lightly. Ignore the requests to pay, they may give up or they may take you to court and attempt to collect via garnishement etc. This depends in part on how much you own as to whether its worth it for them to keep after you. Or you can take the offer of 50% and erase the debt. No matter what you choose it will show up on your credit report but once the matter is closed the clock starts and after about 3 years it is really not a factor in your credit rating.
As long as the account is active its a negative.

Answer 4

only if you feel personally obligated to pay up. but yes if will fall off your credit card report. it is the time of the last payment or activity. you are outside of the /SOL too so they cannot sue you. you more then likly have a scavenger debt collector after you. they bought you balance for 2 cent of the dollar. but if you send them any form of payment it resets that clock. send the a ceist and desist letter, i bet you will start getting calls every day. Send that letter certified and also state the SOL has expired. then if you get any more phone calls you can sue them and get 1k quick. BTW i work for wells fargo he he he, and suprised they did not get more agressive. So i would say dont pay it, sorry boss. lol

Answer 5

Don't pay it - by making any payment you will "reset the clock" and it will stay on your credit report for ANOTHER seven years.

Send the collection agency a cease and desist letter, and let time take its course. The item will drop off your report sometime after the seven-year mark from the last activity date.

Answer 6

It depends on the statute of limitations in your area. In some states, that time has already passed. You are better off telling them you have no idea what they are talking about and to send you proof. Get your credit report as quickly as possible (go with US Mail instead of online) and see what it shows for that creditor. The clock may have started over again when they found you.

Answer 7

Debt does not "disappear." Delinquent accounts, after they are paid off, remain on your report for 7 years. Even if you take the deal, it will show on your report you were late on the account for seven years.

Answer 8

in canada this is true. however the catch is it is seven years from the date of last contact. and here if you pay it off it will still bugger your credit for years. but if you are in the states and i do not know the laws down there.