Credit Cards

[tennisfan78]

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MountainHiker wrote:

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MovingForward_2012 wrote:
I'm new to stuff like this. What is the risk of paying the collection before it falls off?

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It could stay on your credit report longer.

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Once it falls of the credit report, and the collection agency still keeps bugging you, and if it is settled and paid, will it make its way back on to the credit report?  I sure hope not.

[MovingForward_2012]

Ah! I see! That's bad! :-|

[tinuviel]

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MountainHiker wrote:

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MovingForward_2012 wrote:
I'm new to stuff like this. What is the risk of paying the collection before it falls off?

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It could stay on your credit report longer.

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No, it won't stay on your credit report longer. There is one date that is set in stone for reporting CO/CAs, and that is the date of first delinquency (DOFD), which is the date when the account first became delinquent, leading to the CO/CA. The CO will stay on for anywhere between 7 to 7-1/2 years, but it must be removed after that.

What paying it will do, however, is update the date of last activity (DOLA) of the account. This will be updated with the CRAs and will make any collection activity look more recent; this could, indeed, hurt your scores.

[tinuviel]

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tennisfan78 wrote:

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MountainHiker wrote:

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MovingForward_2012 wrote:
I'm new to stuff like this. What is the risk of paying the collection before it falls off?

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It could stay on your credit report longer.

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Once it falls of the credit report, and the collection agency still keeps bugging you, and if it is settled and paid, will it make its way back on to the credit report?  I sure hope not.

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Once it's aged off of your reports it will remain off, even if the CA continues to hound you. The CRAs must abide by the credit reporting time frame (CRTF), which mandates that CO/CAs age off once they have reached 7-1/2 years from the DOFD, as discussed in my previous post.

[HiLine]

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tinuviel wrote:

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tennisfan78 wrote:

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MountainHiker wrote:

---

MovingForward_2012 wrote:
I'm new to stuff like this. What is the risk of paying the collection before it falls off?

---

It could stay on your credit report longer.

---

Once it falls of the credit report, and the collection agency still keeps bugging you, and if it is settled and paid, will it make its way back on to the credit report?  I sure hope not.

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Once it's aged off of your reports it will remain off, even if the CA continues to hound you. The CRAs must abide by the credit reporting time frame (CRTF), which mandates that CO/CAs age off once they have reached 7-1/2 years from the DOFD, as discussed in my previous post.

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Since we're talking about a related topic, do you know if student loan collections follow the same rule? Do they fall off the report after 7.5 years? 

[tinuviel]

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HiLine wrote:

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tinuviel wrote:

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tennisfan78 wrote:

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MountainHiker wrote:

---

MovingForward_2012 wrote:
I'm new to stuff like this. What is the risk of paying the collection before it falls off?

---

It could stay on your credit report longer.

---

Once it falls of the credit report, and the collection agency still keeps bugging you, and if it is settled and paid, will it make its way back on to the credit report?  I sure hope not.

---

Once it's aged off of your reports it will remain off, even if the CA continues to hound you. The CRAs must abide by the credit reporting time frame (CRTF), which mandates that CO/CAs age off once they have reached 7-1/2 years from the DOFD, as discussed in my previous post.

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Since we're talking about a related topic, do you know if student loan collections follow the same rule? Do they fall off the report after 7.5 years? 

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I don't have experience with this type of collection, but I do believe that the same CRTF rules apply. Someone can please correct me if I'm mistaken.

[tennisfan78]

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tinuviel wrote:

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tennisfan78 wrote:

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MountainHiker wrote:

---

MovingForward_2012 wrote:
I'm new to stuff like this. What is the risk of paying the collection before it falls off?

---

It could stay on your credit report longer.

---

Once it falls of the credit report, and the collection agency still keeps bugging you, and if it is settled and paid, will it make its way back on to the credit report?  I sure hope not.

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Once it's aged off of your reports it will remain off, even if the CA continues to hound you. The CRAs must abide by the credit reporting time frame (CRTF), which mandates that CO/CAs age off once they have reached 7-1/2 years from the DOFD, as discussed in my previous post.

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Thank you. That is some good information to know.

[MountainHiker]

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tinuviel wrote:

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tennisfan78 wrote:

---

MountainHiker wrote:

---

MovingForward_2012 wrote:
I'm new to stuff like this. What is the risk of paying the collection before it falls off?

---

It could stay on your credit report longer.

---

Once it falls of the credit report, and the collection agency still keeps bugging you, and if it is settled and paid, will it make its way back on to the credit report?  I sure hope not.

---

Once it's aged off of your reports it will remain off, even if the CA continues to hound you. The CRAs must abide by the credit reporting time frame (CRTF), which mandates that CO/CAs age off once they have reached 7-1/2 years from the DOFD, as discussed in my previous post.

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I agree that once a old debt has aged off a credit reporting bureau the debtor has no legal (maybe a moral)responsibility to repay it but, if the statute of limitations has not run out and the same or a new collection company gets you to agree verbally or in writing to pay that debt you are legally then responsible for a re-aged debt.It can restart the clock on that debt.Maybe up to 7-1/2 years.Every state has it's owe statutes on the rules of repayment of debt which is really important to remember.

[MountainHiker]

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HiLine wrote:

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tinuviel wrote:

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tennisfan78 wrote:

---

MountainHiker wrote:

---

MovingForward_2012 wrote:
I'm new to stuff like this. What is the risk of paying the collection before it falls off?

---

It could stay on your credit report longer.

---

Once it falls of the credit report, and the collection agency still keeps bugging you, and if it is settled and paid, will it make its way back on to the credit report?  I sure hope not.

---

Once it's aged off of your reports it will remain off, even if the CA continues to hound you. The CRAs must abide by the credit reporting time frame (CRTF), which mandates that CO/CAs age off once they have reached 7-1/2 years from the DOFD, as discussed in my previous post.

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Since we're talking about a related topic, do you know if student loan collections follow the same rule? Do they fall off the report after 7.5 years? 

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You can not get rid of student loan debt in BK or have it aged off a credit report. There is no statutue of limitation on student loan debt.Student loan debt can be reduced in settlement if the collection agency is willing to work with you. And usually you have to pay the settlement amount in full.Example, if you agree to settle a $20K debt for $10K, you must pay the lump sum $10K.

[MovingForward_2012]

Yep student loan debt is very strict and can really damage your credit for a long time if you default. Why didn't you defer your payments so you wouldn't get any derogatory marks? I deferred my student loans for 5 years. Just started repaying them a year ago. No derogatories. My student loans were not allowed to be discharged in BK. They are a very important part to my credit score because they are my oldest account and in good standing.