Notice of Collection 8 years later

[Anonymous]

I received a notice of collection and "special offer" from a 3rd party. It's for a credit card that went to collections probably a decade ago and fell off my credit report in 2008 I think. It has past the statute of limitation (I'm in TX). Should I respond? Can this show up on my credit report? Feeling really suckerpunched because I was trying to get my stuff together to buy a home in the next year.

[0REDSOX7]

While some may not agree with the tactic, you can always send a FOAD letter...

[Anonymous]

It will not be added to your credit reports. Do not agree to Make any payment plans or agree to pay anything over the phone as that may restart the clock for lawsuit. If you decide to pay it off, do it all in writing or leave it alone. They will continue to inquire on the unpaid debt for years to come.

[RobertEG]

If the SOL has expired, they can no longer puruse the debt by way of a court judgment.

If more than 7 years plus 180 days has passed since your date of first delinquency on the OC account that created the debt, the CRA cannot include any collection on the debt in your credit report.

You can choose not to pay the debt, and if you wish the debt collector to cease any communications with you, you can send a cease communitation notice under FDCPA 805(c).  That will block further calls and letters.  However, the better process is to send the debt collector a DV request, making sure to do so within 30 days of receipt oftheir dunning notice.  A timely DV is more comprehensive than a simple cease communication letter, as it bars all collection activities until they first provide validation.

That is particularly relevant since you lve in TX, which has a much more comprehensive form of debt validation.

I would recommend sending a DV request under the provisions of the TX Finance Code, and not the federal FDCPA.

In the unlikely event that they do send validation and you decide not to pay, they you can send a cease communication letter under FDCPA 805(c).

Of course, you cn pay the debt, very likely at a substantially reduced settlement,and thus remove any future issues of having any unpaid delinquent debt.

A mortgage lendor may ask for your disclosure of any unpaid delinquent debt, and it could be an issue with them.

That is the primary reason why many debt collectors continue to pursue debt that is outider of both SOL and credit report exclusion.

[RonM21]

+1 this

[darwin_wins]

RobertEG - at what point does an old unpaid debt become irrelevant? No just from the point of reporting or SOL but just for something like mortgage. If someone has maintained a credit history for last 10 years, saying that there was unpaid debt 10 years ago shouldn't affect things happening today. I understand there is underlying risk that could happen again but should be something anyone can do without previous history.

[Anonymous]

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@darwin_wins wrote:
RobertEG - at what point does an old unpaid debt become irrelevant? No just from the point of reporting or SOL but just for something like mortgage. If someone has maintained a credit history for last 10 years, saying that there was unpaid debt 10 years ago shouldn't affect things happening today. I understand there is underlying risk that could happen again but should be something anyone can do without previous history.

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Most lenders really do not care about anything thats beyond SOL and beyond the reporting period. Yes, there IS a "full factual" report they can pull that shows excluded items, but frankly lenders have shown little interest in these reports.

[Anonymous]

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@Anonymous wrote:

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@darwin_wins wrote:
RobertEG - at what point does an old unpaid debt become irrelevant? No just from the point of reporting or SOL but just for something like mortgage. If someone has maintained a credit history for last 10 years, saying that there was unpaid debt 10 years ago shouldn't affect things happening today. I understand there is underlying risk that could happen again but should be something anyone can do without previous history.

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Most lenders really do not care about anything thats beyond SOL and beyond the reporting period. Yes, there IS a "full factual" report they can pull that shows excluded items, but frankly lenders have shown little interest in these reports.

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+1 !!!

[Anonymous]

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@RobertEG wrote:

If the SOL has expired, they can no longer puruse the debt by way of a court judgment.

If more than 7 years plus 180 days has passed since your date of first delinquency on the OC account that created the debt, the CRA cannot include any collection on the debt in your credit report.

You can choose not to pay the debt, and if you wish the debt collector to cease any communications with you, you can send a cease communitation notice under FDCPA 805(c).  That will block further calls and letters.  However, the better process is to send the debt collector a DV request, making sure to do so within 30 days of receipt oftheir dunning notice.  A timely DV is more comprehensive than a simple cease communication letter, as it bars all collection activities until they first provide validation.

That is particularly relevant since you lve in TX, which has a much more comprehensive form of debt validation.

I would recommend sending a DV request under the provisions of the TX Finance Code, and not the federal FDCPA.

In the unlikely event that they do send validation and you decide not to pay, they you can send a cease communication letter under FDCPA 805(c).

Of course, you cn pay the debt, very likely at a substantially reduced settlement,and thus remove any future issues of having any unpaid delinquent debt.

A mortgage lendor may ask for your disclosure of any unpaid delinquent debt, and it could be an issue with them.

That is the primary reason why many debt collectors continue to pursue debt that is outider of both SOL and credit report exclusion.

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I personally believe the motive behind debt collectors that pursue debt that is outside SOL and credit report exclusion is because they know there are many thousands of uneducated consumers out there that will pay them because unfortunately, they don't know any better..

That's a sad truth....