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Hello,
So I am trying to figure out how long it will take to rebuild my credit and finally be able to move forward. I am confused on the 7 year fall off of collections and debt being resold again and again so here is my situation.
I have 1 collection from Capital One, I opened the account April 2008 and defaulted December 2008. Then in May 2013 all of a sudden I have a collection report from Portfolio Recovery saying I owe the same dollar amount of debt $1100 but the original creditor is Capital One. I am now nervous because does this mean I have to wait 7 MORE years for this to come off event though it was old debt just sold in 2013? I really hope this is not the case because I have not been late on any credit cards since December 2008 and the Capital One collection coming off would really improve my credit score
What should I do? Any advice?
Thank you!
The clock on that collection starts on December 2008. It doesn't start from when the collecting agency bought your account.
Portfolio Recovery can also take you to court for it, so be warned.
The statute of limitations dictate how long someone can sue you for a debt, in some cases 3 - 5 years depends on the state. There are websites that tell you how long a creditor has to sue you for the money in the state you are located in. If Capital One still has the debt, they can recall it from the collection agency and you can hopefully get it removed by both parties.
If Capital One is shown as the creditor and has sold the debt to someone else, then the debt should be listed as you owing $0 on your CR to Capital One. If both show the same amount owed, you can contact the CRA and dispute Capital One's claim as they have sold the debt and you no longer have the obligation of paying them.
You can't be charged 2x for the same debt, if one creditor sells to another , then it must be shown as a charge-off of $0 from the original creditor. This must occur for every subsequent transfer of this debt.
The date of first delinquency from Capital One is the actual date the debt should fall off BOTH the collection agency and capital one. At least that is what I was told, someone correct me if I am wrong.
Good Luck
@Anonymous wrote:
Portfolio Recovery can also take you to court for it, so be warned.
That depends on his state of residence. SOL may be anywhere from 3 years to 15 years. They *can* still take him to court if its out of SOL, but all he has to do is show up and claim SOL as defense and its an automatic dismissal.
The clock for the 7.5 years starts at the date of first delinquency. if Dec 08 is when the account went into arrears and you never caught it up that is your date. The SOL of your state of residence would determine the length a company has to file suit for the debt. They could file after the SOL but it would be pointless. Your credit report should have a date it is due to drop off. Is Cap 1 reporting on your CR or just Portfolio?
@Anonymous wrote:The clock for the 7.5 years starts at the date of first delinquency. if Dec 08 is when the account went into arrears and you never caught it up that is your date. The SOL of your state of residence would determine the length a company has to file suit for the debt. They could file after the SOL but it would be pointless. Your credit report should have a date it is due to drop off. Is Cap 1 reporting on your CR or just Portfolio?
Not pointless to some CA's. Some of them will take the chance that you won't show/respond and get a default judgement anyway.
As stated, no collection can show in your CR after 7 years plus 180 days from the DOFD on the OC account.
That would apparently be 5/2016, and would apply to any and all collections. Ownership or payment status of the debt is immaterial to the CR exclusion date of a reported collection.
CR exclusion simply eliminates the easy ability of others to become aware of the debt via a simple pull of your CR.
It does not negate the debt or prevent continued, legitimate collection activities.
It does not preclude others from becoming aware of the existence of the debt by means other than a smple pull of your CR.
There is still substantila benefit to paying the debt after CR exclusion of reported collections.
Be forewarned that some of the agencies will attempt to "re-age" the account stating that you were OK first 30 days, then 30/60/90/etc and attempt to get that as the first date of default. I had 2 different ones for an old Cap1 account attempt this, disputed and removed both, same collection agency that reported wrongly also took me to court and I showed up and used SOL and won, so it's completely gone finally. Due dilligence and keeping and eye on what is reporting is a must.