There are two possible adverse reportings that could now be made to your credit file.
The first is the ovedraft itself. The structure of FCRA 605(a) is that it lists certain adverse items that have their own, peculiar credit report exclusion dates.
Any adverse item that is not specifically identified in one of the subsections is included under the catch-all subsection 605(a)(5).which have an exlusion date of 7 years from the date of occurence of the adverse item. An overdraft falls under that 7 year period.
The second is the fact of their collection authority on the debt, which has its own, separate exclusion date of 7 years plus 180 days from the date of first delinquency with the creditor
Thus, with a date of overdraft of 8/2006, any reporting of the overdraft itself would become excluded after 8/2013, which has already expired.
If they report their authorized collection on the debt, the CR exclusion period of that reporting would be no later than after 2/2014. That would explain their lack of reporting their collection, as it would become excluded not later than 5 months from now, and most likely the CRA would exclude sooner. Not a major concern.....
If your state statute of limittions has expired, and they are aware of that fact, then they may already have violated the FDCPA by threatening legal action.
There is an extensive body of federal case law that holds that knowledge of expiration of SOL gives rise to a violation of the FDCPA for any threat or bringing of a legal action. I would carefully review your state statute of limitations on the type of debt, and if clearly expired, send them immediate notice of that fact, as that might serve as future basis for violation of the FDCPA based on actual knowledge of expired SOL if they persist in such threats.
Even if SOL has not expired and the worst-case scenario occurs, wherein they bring legal action, you can always simply send them full payment prior to trial.
A judgment can only occur if it proceeds to trial and the court finds in their favor. A plaintiff does not enter a judgment, they file an action that lead to trial,and only the court can award a judgment.
I would not be totally intimidated by their legal threats.......
