I have a charge off on my credit but it is coming off next month. Can the collection agency put it back on your credit for another seven years? Or can they turn a charge off into a judgement? The car dealership charged if off but a collection aggency has it now it has been 7 years as of next month.The dealer has the car I turned it in on a lease. I had the option to buy but I decided not to and somehow how they charged me for the pay off 18,000 and I don't have the car anymore. I have just now learned it was on my credit and thought if it was coming off next month I wouldn't pursue it any longer. I don't know what to do about the whole situation I payed what I owed in full on the lease I didn't want to buy the car thats the only thing on my credit period. Help please!!
2007-07-22 13:19:05 · 7 answers · asked by LYNETTE 2 in Business & Finance ➔ Credit
This is getting old.
I wish some of the people who answer on here would take the time to read the LAW.
For those answerers who seem to not know where to find the credit reporting laws - look for the FCRA !!!!!!!!!!!
It's not hard to find, truly it isn't.
To answer the OP's question --
NO an account cannot legally be re-aged to report for a longer period than the original reporting period.
It does not matter if the account is sold to one or a hundred collectors - it can not legally be re-aged.
It does not matter if the account is paid or unpaid - it cannot legally be re-aged.
2007-07-22 14:47:07 · answer #1 · answered by echo 7 · 2⤊ 0⤋
NO if the car is paid (lease) and the company charged it off they can not pursue any more money.
If you were in a lease and did not default. You are not liable. But this doesn't help that they reported to the credit agency. Call the company (credit) prove that the car was a lease and lease was terminated. Show that purchase was declined)
As far as the collection company. They can not collect anymore. You can tell them not to call and harass you or you will report them to the bbb. They may want proof that lease option was terminated.
Good luck
PS I had a collection company send me a bill 14 yrs later on a old phone bill. lol
2007-07-22 13:34:08 · answer #2 · answered by red 4 · 0⤊ 0⤋
You say you paid what you owed on the lease, but they still charged it off and turned it over to collections?
It can't be both.
If you paid in full and no more money was due, then you can dispute the charge off with the credit reporting agency.
If it was a legitimate charge off, just because it falls off your report doesn't mean they can't still try to collect the money.
This is what a lot of people do not understand about their reports and statute of limitations (SOL). A lender and/or collection agency can attempt to get their money forever. The SOL only means that, if they sue you, you can use the SOL as a defense in court so they cannot win a suit against you. BUT, they can still continue to attempt to collect.
2007-07-22 13:28:07 · answer #3 · answered by mister_galager 5 · 0⤊ 0⤋
Something is wrong here. A paid lease where you did not exercise a purchase option won't have a charge off. So if that's really the case, you need to hire an attorney and fix this - possibly asking for damages to your credit.
If this was an early lease termination or a repo, and there was a deficiency charge off then ...
Only PAID bad credit is removed after seven years. Active being collected upon non-zero balance credit will remain.
Does the charge off show an 18,000 balance - or a zero balance ? If the latter, it will drop off seven years after becoming a zero balance - not after it was first reported.
2007-07-22 13:26:05 · answer #4 · answered by Mountain Top 4 · 0⤊ 2⤋
Yes they sure can. there is no statue of limitations on debt. The rule your speaking about is designed to remove old debt which is no longer to be validated by the creditor. I have provided a website that may help you with knowing your rights under the fair credit reporting act.
You have the right to fair credit report from the 3 major bureaus, transunion, equifax and experian, 1 per year. Dispute the debt and if they cannot validate it then it will be removed. Hope this helps and good luck!
2007-07-22 14:21:29 · answer #5 · answered by Etta P 4 · 0⤊ 1⤋
I believe after the 7 years is up then it goes off unless that collection agency sells it to another one then that agency can put it on for another 7 years.
2007-07-22 13:23:45 · answer #6 · answered by C C 3 · 0⤊ 1⤋
The debt can be reassigned until you pay it...and it will, so don't plan on not paying it and just having it fall off.
2007-07-22 13:42:46 · answer #7 · answered by Anonymous · 0⤊ 2⤋