question about collections on credit report?

Question

i have a few collection accounts from when i was younger and over the last 6 months i have paid most of them off but i have a question about 2 of them they both say this
This item is scheduled to continue on record until Nov 2007.
what does this mean i would assume after nov 07 they will be wiped clear?? or not show up on my report but still affect the score?
if i would pay these would that mean since there was activity on the past due account they will redo everything and change the status to paid in full will be on record for 7 more yrs? and affect me longer than if i didnt pay it?

thanks

Answer 1

Accounts cannot legally be re-aged to report for longer then the original reporting period.

Even if you paid the negative accounts off in Nov, 07 -- Nov, 07 would still be the fall off date.

Paying an old negative account without requesting deletion will "update" the account to make it look newer than it actually is. (updating is not re-aging)

Since the accounts are so old, by the time they are updated to reflect the payment they would probably be close to dropping off or already off of your reports. You may be successful in disputing the accounts as being obsolete and have them removed early.

If you have not requested validation before you start discussing payment, you should.
Among other things the collector should prove that they actually have a legal right to collect on the debt.

You should also check the collecting SOL for your state. If you are past the collecting SOL you have a legal right to not pay and to send the collector a SOL letter informing them the debt is no longer legally collectible.

If you are past the collecting SOL and you still want to pay, you would probably be able to get them to agree to reduce the amount significantly and consider it "payment in full" since the only way they can "legally" collect a SOL debt is by your offer to pay.

Never speak to a collector on the phone, do everything in writing.
Never sign your name on anything you send to a collector, only print your initials or type your name.
Always send things to collectors certified mail return receipt.
Never pay a collector unless they sign an agreement that they consider the agreed amount is "payment in full" and that they will delete what they had placed on your reports.
Never pay by personal check, pay using money orders or cashiers checks.

Answer 2

The listing on his credit report shows how long they will be on his credit. The listing of the account on his credit report, however, does not negate his legal, financial, or moral obligation to resolve his debt. The collection activity can and will continue until the debts are resolved. Once paid it will not stay on his credit longer. So I would encourage him to do the right thing and clear up his responsibilities. If he's had a bad history of not paying his bills promptly, you need to check his credit ever 3 or 4 months for the first year. When accounts are moved around to different collection agencies, there's a period of 1-3 months in which a debt wont show on his credit. It doesnt mean he doesnt owe it, it just means it wasnt on there the day you ordered the report. Eventually everything, including medical, will show.

Answer 3

DO NOT PAY THIS DEBT!

I've posted this answer over and over, and I'm amazed at how often people continue to come back and answer this with STUPID answers. You listening shamieya???

Echo is right, but I disagree with a couple parts.

Has this credit even attempted to contact you? Chances are they just charged off the debt, placed it on your credit report and forgot about it.

You are only a couple months away from having this drop off your credit report. It will do it automatically after November '07. Contacting the credit bureau or the creditor will only remind them they are nearly out of time to file a lawsuit, and you could prompt them to do that! If they do, you are in a lot more trouble for a lot longer time period.

For now, DO NOTHING! Check to see what the Statute of Limitations on your debt is for your state to see if it has expired. Some states run longer then 7 years, so you are not in the clear yet.

If you are still confused about this drop me a message and I'll explain this.

Now, for all the "just pay it" responders...let me tell you something. When the debtor fails to pay the debt, the creditor gives them two options. Pay the bill, or have your credit ruined for the next 7 years.

John has already paid this debt! For the past 7 years his credit has been trashed. Get over it!

Answer 4

The collections will stay on your credit for a long time, even if you paid them off. Of course it will help the case that you paid it, but creditors will always be able to see that you had something that went so far as collections. It is a HUGE negative strike to get taken to collections.

Bravo to you for paying it. I would suggest getting one of those cards with a $500 limit for high risk people -- then put a little bit on it, and PAY it every month on time... Don't EVER be late on it. Pay it in full. This will override the damage you have done and will show that you have become a responsible creditor. You will start getting more offers that way and repairing your credit.

Answer 5

Whatever you do pay those collections off! Otherwise it will be charged off as bad debt. I'm not sure if it will "restart the clock" on staying on your credit report, but better to show them as paid in full or paid as agreed. Make sure that the collection agency makes that change after you have paid off the debt.

Answer 6

Usually the seven years begins from the date of last contact. As long as you don't call them you may be ok, but yes it could start over.