i have been looking around the web about credit reports and found info. saying that even if I don't pay what I owe in 7 years it will still get taken off and even if I do pay it that it still takes 7 years? I also heard about "reaging" say, I have an account in collection since 2004, then I contact the creditor to pay off the balance, in 2007. I heard the clock starts all over again from the last time they posted something on my credit? Help....
2007-10-20 09:42:36 · 4 answers · asked by Jewelz 2 in Business & Finance ➔ Credit
What you heard is true.
Derogatory accounts drop off your report 7-years from the date of first delinquency.
It is not legal to re-age accounts, so nothing should stop this from happening.
However the other time line is the statute of limitations, this is the time that you can be held responsible for your debts.
This varies from State to State and by types of debt.
Every time you pay on a delinquent account it starts this time line over. In some State's even talking to the creditors and admitting that the debt is yours starts this over.
If the S.O.L. has passed, you can still be sued but all you have to do is show the court that the S.O.L. has expired and the case will be dismissed.
I have posted a link so you can look up your State and learn more.
http://www.bcsalliance.com/index.html
2007-10-20 10:01:46 · answer #1 · answered by ? 7 · 3⤊ 20⤋
Landlord is wrong. There is a federal law called the Fair Credit Reporting Act that states negative items can only stay on your report for 7 years, beginning from the date of the delinquency. It has nothing to do with closing the account.
Read the link below, as this is one of the best sites I've found that discusses the Statute of Limitations and the Credit Reporting period.
2007-10-20 17:55:57 · answer #2 · answered by Anonymous · 2⤊ 1⤋
One thing to remember, collectors can still try to collect old debts that are beyond the SOL and/or beyond the 7 year reporting period. They can hound you to the grave. They just can't put it on your credit or sue you.
2007-10-20 19:08:42 · answer #3 · answered by bdancer222 7 · 0⤊ 1⤋
You heard incorrectly. Debt does not just go away after 7 years. Things drop off 7 years after the account was closed.
2007-10-20 16:58:07 · answer #4 · answered by Landlord 7 · 2⤊ 3⤋