Collections Reporting Question?

[Creditaddict]

I just want to clarify... Even if an accout is past SOL a collection agency may still buy the debt and report the debt for the full 7 years but may not try to contact and collect on it if you have informed them it is past the SOL and they may not?

Or do I have some recourse to get it removed by this "junk debt collector" because it's past sol and original debter is not pursueing?

[DaBears]

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@Creditaddict wrote:

I just want to clarify... Even if an accout is past SOL a collection agency may still buy the debt and report the debt for the full 7 years but may not try to contact and collect on it if you have informed them it is past the SOL and they may not?

Or do I have some recourse to get it removed by this "junk debt collector" because it's past sol and original debter is not pursueing?

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SOL is a statue of each state that allows creditors to sue to recover any monies. Once it has expired they are no longer to seek legal action. CRTP=Credit Reporting Time Period is 7-7.5 yrs. Once that has expired it is removed from your credit report from viewing by potential future creditors.Unpaid debt is never gone until paid. Either by paying in full or settling the account.

[Creditaddict]

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@DaBears wrote:

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@Creditaddict wrote:

I just want to clarify... Even if an accout is past SOL a collection agency may still buy the debt and report the debt for the full 7 years but may not try to contact and collect on it if you have informed them it is past the SOL and they may not?

Or do I have some recourse to get it removed by this "junk debt collector" because it's past sol and original debter is not pursueing?

---

SOL is a statue of each state that allows creditors to sue to recover any monies. Once it has expired they are no longer to seek legal action. CRTP=Credit Reporting Time Period is 7-7.5 yrs. Once that has expired it is removed from your credit report from viewing by potential future creditors.Unpaid debt is never gone until paid. Either by paying in full or settling the account.

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so this account that is just 1.5 years away from dropping off reports that now is reporting a 2nd time as a brand new bad debt that will also drop off in 1.5 years is here to stay legally for the remaining time even though neither original company or collection agency can make any contact?!

[DaBears]

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@Creditaddict wrote:

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@DaBears wrote:

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@Creditaddict wrote:

I just want to clarify... Even if an accout is past SOL a collection agency may still buy the debt and report the debt for the full 7 years but may not try to contact and collect on it if you have informed them it is past the SOL and they may not?

Or do I have some recourse to get it removed by this "junk debt collector" because it's past sol and original debter is not pursueing?

---

SOL is a statue of each state that allows creditors to sue to recover any monies. Once it has expired they are no longer to seek legal action. CRTP=Credit Reporting Time Period is 7-7.5 yrs. Once that has expired it is removed from your credit report from viewing by potential future creditors.Unpaid debt is never gone until paid. Either by paying in full or settling the account.

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so this account that is just 1.5 years away from dropping off reports that now is reporting a 2nd time as a brand new bad debt that will also drop off in 1.5 years is here to stay legally for the remaining time even though neither original company or collection agency can make any contact?!

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The only time they can't contact you is when you send a cease and desist letter. If a new CA bought the debt than they can list it back on your credit report. The other CA has to remove their TL as they don't have collection authority on it anymore.

[Creditaddict]

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@DaBears wrote:

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@Creditaddict wrote:

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@DaBears wrote:

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@Creditaddict wrote:

I just want to clarify... Even if an accout is past SOL a collection agency may still buy the debt and report the debt for the full 7 years but may not try to contact and collect on it if you have informed them it is past the SOL and they may not?

Or do I have some recourse to get it removed by this "junk debt collector" because it's past sol and original debter is not pursueing?

---

SOL is a statue of each state that allows creditors to sue to recover any monies. Once it has expired they are no longer to seek legal action. CRTP=Credit Reporting Time Period is 7-7.5 yrs. Once that has expired it is removed from your credit report from viewing by potential future creditors.Unpaid debt is never gone until paid. Either by paying in full or settling the account.

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so this account that is just 1.5 years away from dropping off reports that now is reporting a 2nd time as a brand new bad debt that will also drop off in 1.5 years is here to stay legally for the remaining time even though neither original company or collection agency can make any contact?!

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The only time they can't contact you is when you send a cease and desist letter. If a new CA bought the debt than they can list it back on your credit report. The other CA has to remove their TL as they don't have collection authority on it anymore.

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it's the original creditor and now this junk debt collector... so orginal creditor doesn't have to remove account right?

and yes a letter was sent that this account is past sol so there should be no contact and tried to have it removed but it came back validated as correct information.

If I had known they would do this I probably would have advised my friend to pay the original creditor when they offered a last ditch effort settlement after the SOL. but since it was already past sol and they were not willing to remove the tradeline I told him it would not help him at all to pay it... I just didn't realize that even after SOL they could still sell it and a collection agency could still report it... I have never seen this before.

[DaBears]

SOL is just each state law that say the creditor has a certain time to seek or take legal action in court to recoupe in money owed to them. SOL has nothing to do with CRTP. If the new CA decided to list the unpaid debt back on your credit report they can, as long as its within the CRTP. If they list it after the CRTP then they are in violation of the FCRA. 

[Shogun]

2 different items here.  Both clocks are set by the DoFD but don't really have much to do with each other.

SOL.  This is the statute of limitations.  It sets the limits on how long you can be legally/judicially obligated to the debt.  Hence, it's how long you can be sued for it and get a judgement.  This is set by state statutes, the feds have no limits on this.  Now, just because it has passed the SOL doesn't mean the debt is no longer valid.  They can attempt to collect the debt until infinity, but they just can't get a judgement or garnishment on it.

CRTP.  This sets how long it can remain on your CR with a simple pull of your credit.  The time period for COs, etc. is 7 years +180 days from the DoFD.  This is the max time period it can remain.  Once it is passed this, it doesn't mean the debt is dead, they can still attempt to collect, it just doesn't show on a credit pull.  Now some states have a SOL that is beyond this, so you can still get a judgement even though it's not showing on your CR anymore.  It all depends on your states SOL.

A Cease and desist is what would stop them from contacting you.  Mind you, it also does nothing to the debt, it just means they can't contact you.  If the debt is still within the SOL, then they can still take you to court.  They can also still post to your CR until the CRTP runs out, it doesn't stop that.

Hope that cleared some things up for you!

[Creditaddict]

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@Shogun wrote:

2 different items here.  Both clocks are set by the DoFD but don't really have much to do with each other.

SOL.  This is the statute of limitations.  It sets the limits on how long you can be legally/judicially obligated to the debt.  Hence, it's how long you can be sued for it and get a judgement.  This is set by state statutes, the feds have no limits on this.  Now, just because it has passed the SOL doesn't mean the debt is no longer valid.  They can attempt to collect the debt until infinity, but they just can't get a judgement or garnishment on it.

CRTP.  This sets how long it can remain on your CR with a simple pull of your credit.  The time period for COs, etc. is 7 years +180 days from the DoFD.  This is the max time period it can remain.  Once it is passed this, it doesn't mean the debt is dead, they can still attempt to collect, it just doesn't show on a credit pull.  Now some states have a SOL that is beyond this, so you can still get a judgement even though it's not showing on your CR anymore.  It all depends on your states SOL.

A Cease and desist is what would stop them from contacting you.  Mind you, it also does nothing to the debt, it just means they can't contact you.  If the debt is still within the SOL, then they can still take you to court.  They can also still post to your CR until the CRTP runs out, it doesn't stop that.

Hope that cleared some things up for you!

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Yes thank you... For some reason only part I was just leaving out of my mind is a collection agency reporting it after sol.

i was aware of sol and reporting length by everyone.

fustrating as friend was just 2 weeks shy of 3 month cli with navy... This took score back 40-50 points!