Possible bullet - dodged!

[Duncanrr]

I was going through my old mail from when I did all my traveling last year and trashing things I didn't need.  In there was a letter from over a year ago (before I started my rebuild) and it was from a CA.  Turns out that a very old bank account had about $500 in old charges and they were trying to collect.  Ive not received anything else from them.  Online with bank to see what's up right now and get it taken care of.

Looks like I may have dodged a potential bullet to my credit score.  I feel like Im still on pins and needles with my credit as I wait for other possible old debts that I may had forgotten about when I was negligent with my finances.  I had thought I had gone through all this old stuff.  Guess I was wrong.

Im pretty sure the debt is outside SOL but it is still within CRA reporting period.  Time to pay for past sins again!

[Duncanrr]

Paid bank $400 and it was settled in full (paid them directly) and got confirmation number.  I then called CA and gave them confirmation number and told them it was paid to satisfaction of OC and they are to immediately stop any and all collection attempts.

Thank God I got to this before anything hit my CR.  The debt was from Feb 23, 2007.  (just about 5 years old).  I could had waited past the SOL and wouldn't had to pay the debt but I didn't want any thing hitting reports so close to refi and I did owe the money.

[guiness56]

They can still report it as paid. 

[Duncanrr]

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@guiness56 wrote:

They can still report it as paid. 

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Its not been reported pior to this date and once I paided the OC the CA doesnt have any right to report on it (am I wrong?).  The OC hasnt reported it in 5 years so I doubt they would report on it now.

[RobertEG]

A debt collector is permitted to report the fact of their authority to collect on a debt.  Neither the FDCPA nor the FCRA require or preclude reporting of accurate information within any set period of time. 

While they could report, I highly doubt they will do so.  With the debt now paid, their primary reason for reporting, which is putting pressure on the consumer, is gone, so it really serves no business purpose on their part.  They would have to simultaneously report a collection, that its status is closed, and that the debt under collection is $0.

Kinda silly.  But not prevented.

Additionally by reporting, they would open themselves to a possible FCRA dispute over its accuracy, requiring time to address.

[guiness56]

I was talking specifically about the CA.  But, yes, they could.  It does not mean they will.

[Duncanrr]

@RobertEG

Was there any other better way to handle this? (I guess  I could had PIF without paying a lesser amount.)

[guiness56]

Did they say that your payment paid the debt in full?

[Duncanrr]

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@guiness56 wrote:

Did they say that your payment paid the debt in full?

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Paid in full satisfaction for lesser amount.

[guiness56]

Then they shouldn't try to come after you for the rest.