Expiring off my Credit Report but they are trying to collect, what should I do?

Question

In an effort to improve my credit score I've collected all three of my free annual credit reports. It seems theres a few items that will be expiring due to the seven year statute of limitations. I know the creditor can file a civil suit to claim their money. My question really is this: If I respond to these debts, even to dispute them does the statute of limitations start over again? Would it be in my best interest to let the debts expire? Note this is in the United States.

Answer 1

Echo is usually correct on anything to do with credit reporting...but I gotta fix her answer a bit.

First let me clarify something that many people get confused. There are two reporting timeframes. Credit Reporting and Statute of Limitations.

Credit Reporting is the time that the credit bureau is allowed to post a negative item on your credit reports. This time is 7 years, beginning on the date you became delinquent on the account.

Statute of Limitations is the time that a creditor has to file a legal suit to collect on a debt. Every state has a different time period set by law, and varies from 3-10 years (average about 6).

The big confusion people are having is what does it take to restart the SOL. I've seen people post that simply talking to a collection agent can do it.

I've done a lot of research on this. In order to reset the SOL there must be a "volation" of the original contract or agreement. That means there must be some sort of agreement to change the contract.

Therefore, if you were to talk to a collection agent and simply discuss your balance, there certainly is no agreement to pay it back.

If you get a copy of your credit report, and then demand validation of the debt, that is not an agreement to pay the debt, and it's not even a confirmation that you owe the debt. That fact is clearly written in the Fair Debt Collections Act.

But if you make a payment, or charge something, to your account, that will establish an agreement that you acknowledge the debt and by implication you agree to repay it. The SOL "clock" will restart from that date.

Have you ever talked to a collector, and they asked you to send them a tiny payment of $5 as a "good faith" sign that you want to work with them to repay the debt? They may have even implied that they will take tiny payments until the debt is paid? Wasn't that nice of them?

What they have actually done is restart the SOL clock. This is very common with debts that are already over the expiration period, and by law the collector can not sue you for. But once you have made that $5 "good faith" payment, you now restart the clock, and you will soon receive a summons to appear in court. I've seen it happen many times!

OK....back to the question. Demanding validation does not restart the SOL. But it will show the creditor that you are alive and well....and gives them your new address (in case you moved and they lost track of you).

So keep that fact in mind as you proceed in cleaning up your credit report. Might be a good idea to have the validation information sent to a friend, and not to your new residence.

Answer 2

If it is the type of account that has a 7 year reporting SOL, it must fall off at the 7 year mark - that SOL CANNOT BE RE-AGED !!!!!!!!!!!!!!!!!!!!!!!

Re-aging is illegal and you would have the right to sue the credit reporting agency (CRA) and the data furnisher up to $1000 each and if the data furnisher is a collection agency you can also sue for any FDCPA violations.

Re-aging on the collecting SOL is also illegal.
Though in a few states making a payment would re-set the collecting SOL, but that is generally with a promise to pay "in writing". AND even then the reporting SOL cannot be re-aged.

For them to report an account that is past the 7 year reporting SOL, they would have to have you agree to a completely NEW contract on the account - effectively making it a new account.

If you are past the collecting SOL in your state, it would be illegal for an original creditor or collection agency to file a suit on a time barred debt - you would be able to file a counter claim on that violation.

If you are past the collecting SOL in your state, dispute away with the CRA's.

You can check the link I've provided in my profile to find the SOL for your state.
You should also check out the other links I have listed - the FCRA, FDCPA, etc.

Learn and use your credit rights.

Answer 3

The seven year limit cannot be re-aged. Basically, when it's time for them to fall off, they will fall off regardless if you tried to pay them or decide to ignore them.
You can let the debts fall off of your report, but that does NOT mean that you no longer owe the money. The creditors (or collection agencies) still retain the right to contact you in an attempt to collect on the money you owe.
I hope that helps!

Answer 4

the truthfully record of the credit card debt might roll off in 7 years, in the event that they end attempting to assemble it right this moment. besides the undeniable fact that, as quickly as they deliver the debt to a collections business enterprise, then that's 7 years from the time the collections business enterprise gets the debt, and this might proceed. additionally, the debt might roll off of your credit record yet your credit would be so low which you will not have the skill to get first rate credit. think of of it this way, that undesirable debt would be on your credit record for the subsequent quite a few years, yet your credit won't immediately pass up as quickly because it is off your credit record. it is going to stay low from that.

Answer 5

What most people don't understand is that as long as there is a balance on the accounts, creditors can continue to report it to the bureau's and go after you until it's paid. Now if they don't keep reporting it to the bureaus then it will fall off after 7 years. After a balance is paid then it will drop after 7 years. So if the creditor keeps reporting it to the bureau it will never come off. Your best bet is to just call them and either work out a payment plan or make a settlement offer. Just pay them off.

Answer 6

I've got a number of old debts that due to financial reversals i had to forget. Though some are still trying to collect 14 years later, they no longer appear on my credit record.

So my advice is to continue to ignore them. For the most part, most of them will give up after a while. [The people still trying to collect from me are just fishing. Their idea is that, if they can somehow scare me, i'll someday pay. Every six months or so i get another letter, and every six months or so i throw it in the garbage. Poof!]

Answer 7

Do not pay or do anything. that is why they are contacting you they know the statute is almost up.