08-26-2012 07:53 PM - edited 08-26-2012 07:54 PM
I acted as a PG for a company that closed 8 years ago. An outstanding amount defaulted 7 years ago October. When the default occurred, it was placed on my personal credit report. Since then, the amount due has been sold to two different organizations, with the last now threatening to begin civil action if I do not pay by the beginning of September. I previously requested documentation (from the first company) showing I signed an agreement owing them, which they could not produce. What I'm trying to determine...once the default is on my account, does it follow the laws of personal credit? Meaning...if they have no signed paperwork saying I owed them money, or that I was ok with the amount being sold to another vendor, they have no claim? Also, does the seven year rule apply?
Thanks much for your assistance.
08-26-2012 08:16 PM
Per reporting, it has to follow the same rules as personal accounts. It can report for 7 to 7.5 years from the date of first delinquency. If it went bad 7 yrs ago, then expect it to fall off soon, if reporting.
Per being sued, it depends on your state's statute of limitations. That varies by state and by debt type. It's possible that already expired. YMMV. Also, in some states, SOL can be restarted if a payment is made, a promise to pay was made, acknowledging the debt, etc. If you asked for a copy of the contract, they don't have to provide it, but must produce it in court.
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO