Collection Question

[FICO_addiction]

ok im gonna humor you...where(exactly can you last statement be found.....i had over $5,000 of charged off debt(i was 18), after seven years no trace could be found, i work for bb&t mortgage division, and acquired my home loans(plural). one i rent and one i live in. one for $75,800 the other for $168,000. No trace of my former and unpaid debt was found....and no i didn't do my own loans. So now you know, why i  don't see, what you are saying.

[guiness56]

605. Requirements relating to information contained in consumer reports

[15 U.S.C. §1681c]

(a)

Information excluded from consumer reports.

Except as authorized under subsection (b)

of this section, no consumer reporting agency may make any consumer report containing

any of the following items of information:

(1) Cases under title 11 [United States Code] or under the Bankruptcy Act that, from the

date of entry of the order for relief or the date of adjudication, as the case may be,

antedate the report by more than 10 years.

5

The reporting periods have been lengthened for certa

in adverse information pertaining to U.S. Govern-

ment insured or guaranteed student loans, or pertaining to

national direct student loans. See sections 430A(f) and

463(c)(3) of the Higher Education Act of 1965, 20 U.

S.C. 1080a(f) and 20 U.S.C.

1087cc(c)(3), respectively.

6

This provision, added in September

1996, should read “paragraphs (4) and

(5)

....” Prior Section 605(a)(6)

was amended and re-designated as Section 605(a)(5) in

November 1998. The current Section 605(a)(6), added in

December 2003 and now containing no reference to a

ny 7-year period, is obviously inapplicable.

22

(2) Civil suits, civil judgments, and records of arrest that from date of entry, antedate the

report by more than seven years or until the governing statute of limitations has

expired, whichever is the longer period.

(3) Paid tax liens which, from date of payment, antedate the report by more than seven

years.

(4) Accounts placed for collection or charged to profit and loss which antedate the report

by more than seven years.

5

(5) Any other adverse item of information, other than records of convictions of crimes

which antedates the report by more than seven years.

5

(6) The name, address, and telephone number of any medical information furnisher that

has notified the agency of its status, unless--

(A) such name, address, and telephone number are restricted or reported using

codes that do not identify, or provide information sufficient to infer, the

specific provider or the nature of such services, products, or devices to a

person other than the consumer; or

(B) the report is being provided to an insurance company for a purpose relating to

engaging in the business of insurance other than property and casualty insurance.

(b)

Exempted cases.

The provisions of paragraphs (1) through (5) of subsection (a) of this

section are not applicable in the case of any consumer credit report to be used in connec-

tion with

(1) a credit transaction involving, or which may reasonably be expected to involve, a

principal amount of $150,000 or more;

(2) the underwriting of life insurance involving, or which may reasonably be expected to

involve, a face amount of $150,000 or more; or

(3) the employment of any individual at an annual salary which equals, or which may

reasonably be expected to equal $75,000, or more.

[DaBears]

+1 Guiness

[FICO_addiction]

exactly what i stated above(as i said i am a mortage lender) this only applies to debt accured after the new law was passed. All prior debts accured before this new act is not held to the same standards.....also most, rather almost all, lenders will only look at the last seven years, and then really only take into effect the the last four years of unpaid accts.  I see it daily folks. banks want to lend money...they care not about accts 10 years old....and if they do then come see me!

[guiness56]

---

@gjmmgmnt wrote:

My question is that I have an account that is in collections and the 7 year statute is dawning upon me. I arranged a payment plan and a few payments away from paying it off. I have experienced paying off an account once before and it plummeted more score. Should I continue with paying the last few payments? will it drop my score again when paid off? Should I speak with colection agency in regards to a pay for delete or is it too late? Not sure whats the best course of measure now that I'm so close in paying it off but also realizing this will be dropping off shortly and not wanting to ding my score anyfurther. Thank you.

---

When was the last time this collection updated?

If they have not updated in a while and you pay it off, it will update to a current date and make it appear new. Thus, the score drop.   If they have been updating monthly, your score should not drop.

[FICO_addiction]

 Prior Section 605(a)(6)

was amended and re-designated as Section 605(a)(5) in

November 1998. The current Section 605(a)(6), added in

December 2003 and now containing no reference to a

ny 7-year period, is obviously inapplicable

[FICO_addiction]

guiness56 you last post is 100% true

[FICO_addiction]

but it can not stay on your credit report any longer than the original date reported. we are not allowed to cause further injury to your report from orignal posted date, even when paid. but guiness56 is right, the paid date will update(score drop) but it will still drop off your report 7 years from original posted date.

[Shogun]

     Well I'm a little late to the party, but I want to put my 2 cents in.  The information give by guiness and dabears is absolutely correct.  It has nothing to do with being on a "high horse", or anything of that matter.  It has to do with fact.

     The CRTP sets how long something can stay on your CR, it has nothing to do with whether a debt is valid or not.  The SOL sets the time period for which a judgement can be granted against you, it's expiration also does not make the debt unvalid.  The debt is still a debt, they just can't post to your CR nor can they take you to court.  It is a moral issue as to whether to pay or not, but unpaid debt just does not go away on it's own.  It can be sold from CA to CA, and I have found that the more this happens, the more bottom feeder of a CA you are likely to get.

     With the exception of the aforementioned states, this is how the system works.  I always advocated paying/settling the debt if it is a valid debt and is yours.  I'm not making myself out to be any better than anyone else, it's just how I work.  The information was given to the OP was sound and valid.  You have a difference of opinion, and I do like to see different opinions and let the OP choose what works best for them.  However the manner in which this was handled was uncalled for.  In the future I do ask that you convey your opinions in a more constructive manner.

Thank you, Shogun, myFICO moderator.

P.S.  Starting a flamewar with one of our Community Leaders will NOT under any circumstance be tolerated.  

[FICO_addiction]