If a debt doesn't show up an a credit report, is it owed?

Question

HELP.

I live in California and my mom (who also lives here) came to me, asking for help...she's in her late 70s and she's always been really bad with money.

I didn't really realize just how bad (she never really let me see; I just knew she was...keeping shuffled up piles of papers in big cardboard boxes, etc.) until she turned over her bills to me to take care of. They were so out of control that she was nearly drowning in debt. Not only that, but she was literally in fear from collectors calling to harass her and mailing her notices.

When I was going through her bills sorting everything out (and what a tangled web she has, I must say), I noticed a letter from Scott Lowery Law Office.

Her credit report doesn't show the creditor, the acct. # or the debt amount...could this be an old debt, & if so, how far back do they go? If it doesn't show up on the CR does she still need to pay it?

I contacted Bud Hibbs but got kind of a hint to ignore it but not a concrete answer.

My mom lives in affordable senior housing, has no assets (never drove either so doesn't have a car), but she has the usual debts along with a credit card and a line of credit at a bank she owes. She makes just enough off of Social Security and CA State Employees Retirement that she doesn't qualify for low-income. So she does get money every month but she doesn't have any savings or anything worth taking. Thanks to everyone so far for the info, really appreciate the input!

Answer 1

Just because it is not on the credit report does not mean that it is not a debt. It is very possible that the debt was not reported to the credit agencies. There is nothing that says a debt has to be reported to the credit agency. Also, it is possible they can do that in the future while they are trying to collect.

Also, did you check will all three of the credit reporting agencies. It is very common to find something that is on one of them but not the other two.

It all boils down to the creditors being able to show that your mom incurred the debt. They should be able to send you paperwork confirming this. They are required to do so by federal law if you ask for it. Go and do some research on how to deal with creditors online.
This site has tons of resourse (plus lots of other personal finance articles)
http://www.bankrate.com/brm/news/Archive.html

There are thousands of articles in there. Do a search for creditors or collection agencies. You will find quite a few of articles in there.
Here is one to start with:
http://www.bankrate.com/brm/news/special/19991217a.asp

Next up, what kind of assets does your mother have? I have heard of elderly being uncollectible if they live off of social security and have no tangible assets or having assets that are shielded from creditors. That does not mean that the collection agencies won't try to collect though.

Answer 2

I think it only stays on the report for 7 years. Could be the debt is older than that. If it's not there, don't pay it. Mostly likely, said Creditor wrote it off as bad debt. If she can afford to pay it, which it does not sound likely from what you've posted, then she should. Otherwise, I would work on the bigger, badder ones first.

Answer 3

7 years dear......

and if the collectors start calling... DO NOT AGREE to do ANY kind of payment plan..........that starts the 7 years ALL OVER AGAIN....

It doesnt have to show on a credit report to be owed, BUT the debtor has to PROVE the debt. Make them PROVE IT, and do it in writing with carbon copies to your lawyer...

Answer 4

Credit reports are not always accurate or timely.

Just because a debt doesn't show on their doesn't mean it isn't owed.

Credit reports are often weeks or months behind in their data.