CA reporting time

Anonymous · ‎03-10-2011

If a debt is due to "fall off" what exactly does that mean? Is it able to be resold, etc. Any info will be greatly appreciated In my case it is a collection from years ago, and per TU it's due to be rmoved in november of this year. It's out of SOL . This debt is my main priority right now and I don't want to contact them in case of any issues that may arise.

MBOhio2 · ‎03-10-2011

It means that is can no longer be listed on your credit report. For FICO and scoring purposes, it's as if it does not exist. Technically though, the debt still exists, but if it's outside of the SOL, then there's is nothing the creditor can really do... they have zero leverage from either a collection or credit reporting standpoint. I'm not sure what your short term goals are, but I think your best just letting it fall off in November.

Why are you so eager to get this off now? Generally, the older the negative item, the less impact it has on your credit score - being over 6 years old, this collection is not likely to be impacting your credit score much.

Mid-2010 Starting Scores: FAKO EQ 476 FAKO EX 506 FICO TU98 575
July 2017 Current Scores: Approx 710 (waiting for official updates)

Anonymous · ‎03-10-2011

Wanting to get a home loan. I'm not sure if they would require this to be paid prior. So once it drops it will no longer count into my debt as far as credit reports and my score goes?

MBOhio2 · ‎03-10-2011

I am no mortgage expert (check the Mortgage Loan board to confirm), but from what I understand, any lender will want all open collections paid prior to approving you. So yes, you would be required to pay this to be approved for a mortgage. However, after November, the debt will not appear on your credt reports so a mortgage lender wouldn't require you to pay it because they won't even know it exists.

All of you myfico experts - the above is true, correct?

If you don't mind me asking, what are your current credit scores?

Mid-2010 Starting Scores: FAKO EQ 476 FAKO EX 506 FICO TU98 575
July 2017 Current Scores: Approx 710 (waiting for official updates)

RobertEG · ‎03-10-2011

Expiration of the periods set forth in FCRA 605(a), such as 7 years plus 180 days from DOFD for a collection, are not absolutes.

They are not limitations on reporting of any information to a CRA. They are limitations on the CRA as to what can usually be extracted from your credit file, and included in their credit report. Under the exemption provision of FCRA 605(b), a mortgage lendor can request and receive a complete copy of all information in your credit file, inclduing infromation normally blocked under FCRA 605(a), if the principal amount of the loan is $150,000 or above.

Additionally, most mortgage lendors witll request a separate itemization of all outstanding debt that you owe. Dont assume that because the 7 1/2 year period for credit reporting purposes has expired that he mortgage company wont be aware of the unpaid debt.

MBOhio2 · ‎03-10-2011

I stand corrected... thanks RobertEG!

Mid-2010 Starting Scores: FAKO EQ 476 FAKO EX 506 FICO TU98 575
July 2017 Current Scores: Approx 710 (waiting for official updates)

Anonymous · ‎03-10-2011

So do you advise I pay it then? Im so confused ass to what to do with this. MyScores are in the mid 600's.

RobertEG · ‎03-10-2011

I wont advise on whether or not to pay a debt..... that is a personal decision.

All I can offer are the pros and cons.

Not paying, once the debt is past SOL and past the CR reporting periods will normally make the debt invisible in standard review of your credit. So you can, if disposed, decide not to pay, and take the chances that its invisibility will remain. Usually a safe assumption, but not always the case.

On the con side of the coin, the debt collector can continue to attempt debt collection, theoretically forever. The debt never goes away. While they cant get it into your CR, they can still report its presence to your credit file, and send notices or call you. However, you can shut off their continued communications with you by simply sending them a cease communication letter under FDCPA 605(c). Mortage lendors are a different matter. Regardless of expiration of SOL or non-appearance in your normal CR, if they become aware of an unpaid debt, most will demand its payment as a precondition to final mortgage approval. You take your chances that they wont become aware of it.

No single answer.

MarineVietVet · ‎03-10-2011

@RobertEG wrote:
Expiration of the periods set forth in FCRA 605(a), such as 7 years plus 180 days from DOFD for a collection, are not absolutes.
They are not limitations on reporting of any information to a CRA. They are limitations on the CRA as to what can usually be extracted from your credit file, and included in their credit report. Under the exemption provision of FCRA 605(b), a mortgage lendor can request and receive a complete copy of all information in your credit file, inclduing infromation normally blocked under FCRA 605(a), if the principal amount of the loan is $150,000 or above.
Additionally, most mortgage lendors witll request a separate itemization of all outstanding debt that you owe. Dont assume that because the 7 1/2 year period for credit reporting purposes has expired that he mortgage company wont be aware of the unpaid debt.

However I am not aware of anyone who has been denied credit because of this provision. I can't say it hasn't happend but I don't recall anyone posting about it. If someone can find such a post please link to it so we'll know that it does occur.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".