Debt collectors and my credit report

[joe715]

Howdy. I just obtained my credit report online for the first time. I am rated with "poor" credit and that does not suprise me. About 7-8 yrs ago I started to fall back on about 3 credit cards and a maxed out overdraft protection for my checking account. I had a low paying job that varied paycheck to paycheck depending on the amount of work the company obtained. I could barely stay afloat. 3 yrs. ago, I moved across the country and now have a much better paying job but this job keeps all of my current bills paid on time with a little cash leftover but not enough to deal with collectors. Since then, I have done nothing to resolve the issue. In fact, I have had my ringer on my phone turned off for about three years just to not have to deal with them. I always figured that one day when I'm ready, I will try to pay them off but never have been able to get the spare cash. I noticed in my report, "charge off" on all of the cards and overdraft protection which was considered a loan. Since its been so long now, my question is, Is there a statue of limitations for the collectors to collect from me? One of the negatives shows will be removed in May of this year, two more next year. Does "charge off" mean I dont have to pay anymore? Have they given up? The cards were run up to there limit of $500.00 each but after late fees, interest and collector fees, they were up over $1000.00 a piece. The last negative on my report shows that it comes off on 12/2008. Shall I just ride out the storm? I'm fine with that as long as they dont dab me with more negs on my report. Otherwise I will try to work with them but I'm not gonna call them and tell them if they have given up and already done there damage to my report. Thank you. -Joe

[joe715]

Hi folks, its me again. I just did a little reading and I think I found the answer to my own question. I will post it for others for the information. This is quoted from a credit information book. -Joe




"PAYING OLD DEBTS... WHAT YOU SHOULD KNOW!"

Your credit score gets its momentum from your more recent credit history rather then your past credit history. If you have had a debt go into collections a few years back, although negative, the credit score formula considers that debt to be an "old debt" which doesn't weigh down your credit score nearly as much as it would it it were more recent. Therefore, if you were to pay down, pay off, or even acknowledge that collection... Guess what? You have just made that collection account recent... So recent that it can now be on your credit report for another 7 years.

Although taking responsibility for your debts is the right thing to do, you may want to consider what is in your best interest regarding your credit score.

It is very likely that the company of your original account has written off your debt as a loss and sold it to an outside collection agency. So if you decide to deal with this debt, you might be dealing with a whole new problem.

Remember that collections fall off your account after 7 years, so it may be worth it just to save your money or rather pay more recent debts, and let those old debts ride themselves out!

[tweiler]

Every state has a timeframe in which you can be sued for a debt. I am in Virgina and I found out that credit cards can' sue after 3 years. So you will owe themoney until you pay it but after the statue of limitations (SOL) expires, they can't sue you for anything. If they do, they are breaking the law and when you go to court you simply point out their time has elapsed for suing and you win. Check with your state to find out how long they really have to file a lawsuit.

[HHM]

Charge off doesn't necessarily mean they have given up, but your debt is likely now in the hands of a debt purchaser to which the orignal creditors assigned their rights. Yes, statute of limitations is one way to deal with debt, but its a far more narrower defense then most people realize.

The statute of limitations is ONLY a defense to a lawsuit for the claim and its one you have to assert as an affirmative defense to the lawsuit. Debt purchasers can still pursue all non-judicial means to collect the debt despite the statute of limitations. Also, there are several avenues a debt purchaser can do to "trick" you into reaging the debt. Reaging means the Statute of Limitations starts all over.

[joe715]

Charge off doesn't necessarily mean they have given up, but your debt is likely now in the hands of a debt purchaser to which the orignal creditors assigned their rights. Yes, statute of limitations is one way to deal with debt, but its a far more narrower defense then most people realize.

The statute of limitations is ONLY a defense to a lawsuit for the claim and its one you have to assert as an affirmative defense to the lawsuit. Debt purchasers can still pursue all non-judicial means to collect the debt despite the statute of limitations. Also, there are several avenues a debt purchaser can do to "trick" you into reaging the debt. Reaging means the Statute of Limitations starts all over.

Thanks for the info. So your saying that after 7 years, they can still try to collect the debt but cannot sue? And after 7 years, can they still ding up my credit report? My debts are almost 7 years old and I have not heard from any collector via mail or phone in over 7 months. I actually would like to settle these debts the right way now as I am more stable. Would it be worth it?

[HHM]

If you haven't heard anything, you should be ok.

However, credit reporting is another issue as most Debt Purchasers treat the debt, for reporting purposes as the date they were assigned the debt and not the date of last activity. The catch 22 is, if you dispute it, then they can figure out where you are now.

[shardena]

collection

I have worked in the collection field for over 5 years. And yes, yes , yes, they can still come after you for the debt. What they usually do is sell it to another collection agency, and the seven years starts all over again with the date it was sold to them. But you can send a letter to the actual credit report agency and advise them that the debt is over 7 years old, they will then do a investigate, which can take up to 30days. And if found out that this is indeed same debt, they will remove it. I have had it done.

I pray that everything works out for you.

[joe715]

Thank you for the info shardena. I am currently researching ways to settle these debts without re-aging the process. I just would like my credit report to heal now. Does anyone know where I can start? I've been looking on the web for info but any shortcuts would be appreciated. Like I said, I havent heard anything form collectors in quite a while and really dont know who was was trying to collect. I see a couple of collectors on my Trans Union credit report but no contact info. Anyways, thanks again.