If I pay off old debts what is the statute of limitation?

Question

I have paid off some old debts recently. I settled them, and wish I would have demanded that they be removed from my credit report, but i didn't. so now my question is, does the statute of limitations start again when i settle old debt? Or does it continue until the end of the 7 yrs of the first delinquency. I am really trying to fix my credit and this really has not helped me.

Answer 1

The reporting period cannot be re-aged just because you made a payment after the original creditor charged off the account.

If it is a credit card, the reporting period will still be 7 years from the first time you became 30 days late and never brought the account current leading to the charge off.

It is to bad that you didn't request deletion upon payment and I doubt they will even consider deletion since they already got paid.
The best you can probably do now is to look over your reports for any inaccurate info (there usually is) and dispute it with the CRA's and hope the collector doesn't verify it.

Answer 2

Echo once again is right on the money.

The 7 yr. reporting period is by federal mandate, not state.
Section 605 of the Fair Credit Reporting Act clarifies the reporting period for different types of debts.

RJ, if you read any part of the FCRA, where in the world does it say 'by last date of activity'? It doesn't!
You're a credit restoration expert? I think it's time for a new career.

State SOL is the time frame for collecting on the debt, not reporting. The collection SOL can be reset by taking certain actions. However, the 7 yr. reporting period cannot.

Stay away from credit repair firms. They can't do anything more than what you can do yourself. They'll charge you lots of money for something you can do for free.

Lastly, paying off old debts, especially those already a few years old, actually hurt your credit. It's a$$backwards, I know. But that's how it works. Like Echo said, since you didn't ask for a 'pay for delete', your best chance is to dispute it and the CRA/creditor doesn't respond in time.

Answer 3

The statute of limitation for debt collection varies from state to state. For most states it's 7 years. However, credit reporting agencies "may" report an account for 7 years max according to the Fair Credit Reporting Act. However, the seven years start from the "last date of activity", which is the last time you made a payment of one dollar ($1.00). So, by paying an old collection, instead of helping your credit, you lowered it, at least for a few years, then it will start helping you that it's paid. Anyways, just dispute it with the credit reporting agencies; chances are the creditor/collector won't verify it.

Answer 4

It depends on the state you live in, but generally it is reported for seven years from the date of delinquency or write off. If you believe that these are beyond the statute of limitations dispute the accounts through the three credit reporting agencies, Experian, Equifax and Trans Union. Also for them to report it paid can take up to 30-90 days depending on how often they send in updates on their accounts.

Answer 5

If they have been paid, dispute them. Simple as that. When it's settled, all it does is cost the collection agency more just to verify the accuracy of the report. You DO NOT want 'settled for less than original amount' on your report. This is like a flag telling lenders that this person isn't gonna pay their debts. By disputing, you can probably get it off of your report. By law, they FCRA allows you to dispute the account as many times as you want. Keep doing it til they fall off your report. Holidays are expecially good for disputes because they are overrun as it is-with less work days in the month they are even more handcuffed due to time restrictions.
Good luck!

Answer 6

No. There is no statute of limitation. This should have been reported to the credit agencies by the creditors within 14 days to show the debts have been paid in full to begin re-establishing your credit. I am sure you have proof of these paid debts. I would contact the credit reporting agencies (if you are in the U.S. it is Experian, Equifax, and TransUnion) to immediately begin making the necessary changes to your reports.

Answer 7

Find a credit repair agency who can help you.I was in the same situation as you. so far I got rid of half of my paid collection accounts on my credit report
With a credit repair agency. without having to wait 7 years. Good Luck!

Answer 8

I have 2 from 99 and 00 and I paid them off in full in 2006 and they said they will be removed in 2009. so I hope this helps