when does it start. ive heard it starts from the date it was sent to collections and other ppl have said it stays on there for 7yrs after a zero balance.and the 7yrs can start over if you start to pay it later. is that true?
so if something is on your report for 3 years and you pay it then it will start over at year 1...
does anyone really know?
2007-09-04 09:25:41 · 6 answers · asked by nikkylyn 5 in Business & Finance ➔ Credit
so basically if i pay my old collections now. the 7yrs for that item will stay on my credit report and it wont start over in 2008 is the statute of limitations just the amount of time they can reasonably collect on the debt that would be 7yrs from date of last activity. I plan on having my old debt paid for within the next two months. i just wanna make sure that these neg items will come off in the 7 yrs since they ve been on my report....
2007-09-04 16:32:54 · update #1
You are talking about two different time tables.
The first is the time a account shows on your credit report, this is 7-years from the date of first delinquency period. Nothing resets this date if they try you can sue them. It illegal to re-age debts.
The second is the Statute Of Limitations this veries from State to State and if you make a payment or in some States even agree to make a payment this time table can start all over again.
2007-09-04 10:40:11 · answer #1 · answered by ? 7 · 1⤊ 0⤋
There is a great deal of confusion about the reporting period. People tend to confuse the rules on credit bureau reporting with rules on the statute of limitations (SOL).
A negative item will stay on your credit report for 7 years and 180 days from the date of last activity (DOLA) which would be the default date or the date charged off. NOTHING resets this time. If a creditor tries to re-age the account, you can dispute it with the credit bureau and it wil be removed.
On the other hand, making a payment, and in some states just promising to make a payment, restarts the clock on the SOL. SOL is an affirmative defense if you are sued. It doesn't mean the collection agent can't call and try to collect -- they can hound you to the grave.
A paid bad debt looks better than an unpaid. It is also the moral thing to do.
Of course the best thing is to pay all your debts on time and don't take on more than you can afford.
2007-09-04 09:40:07 · answer #2 · answered by bdancer222 7 · 1⤊ 0⤋
The length of time a negative mark can stay on your credit report starts from the time you were late or the late payment went into collection, not from the last time you made a payment on the account. Some collection agencies update their reporting status on you to keep the account active with the bureaus to extend the time the account appears on your report. This is very deceiving of them, because most often the account is updated and the period of time the account is active appears to be extended. You will want to challenge this with the credit reporting agencies in writing. If you do, bureaus will correctly remove it 7 years from origination.
If you do pay on that account 3 years later it will start all over!
2007-09-04 13:12:45 · answer #3 · answered by Anonymous · 0⤊ 0⤋
The 7 year date starts on the date of the last delinquency. This sometimes coinsides with the account being sent to collections and that is where the confusion comes in.
No, the 7 year period CANNOT start over for any reason - be it a payment, or that it was sold to another company. Accounts cannot be reaged. That's illegal.
2007-09-04 09:49:28 · answer #4 · answered by YSIC 7 · 0⤊ 0⤋
Hello,
Based on the information gathered through the Federal Trade Commission it starts from the last date of activity. Which usually means the month following the last month you made your last payment. If you have made payment to the account with a collection agency, first of all they have to prove they assumed the debt legally and it isn't an index card on their desk. If it is assumed properly and they are the new creditor it can get updated with them reporting but not the original creditor. These items become a item you need to dispute on your credit reports first before you contact them. What truly matters is not what they tell you but what is being reported and I have found that to always be a big difference in information. You can go to WhatTheFrank.com and get more information on this item.
2007-09-04 09:38:22 · answer #5 · answered by Anonymous · 1⤊ 2⤋
what r u talkng about
2007-09-04 09:32:55 · answer #6 · answered by Anonymous · 0⤊ 1⤋