cancel
Showing results for 
Search instead for 
Did you mean: 

Repaying debt already gone to collections

tag
MissMoney
New Visitor

Repaying debt already gone to collections

I ran up credit card debt while out of work for a few years. I am now back on my feet and have saved enough money to live on for a year should I be out of work again. Thus, I am now ready to begin repaying my debts. The credit card debt all went to collection companies between 2008 and 2011. Someone told me that if I begin repaying these debts, it re-starts the seven-year clock on getting it off my credit score. IS THIS TRUE? If so, I will only re-pay the debts to the companies where I will need another account from when I move (gas & electric co., for example). Thanks.

Message 1 of 6
5 REPLIES 5
guiness56
Epic Contributor

Re: Repaying debt already gone to collections

No, you were misinformed.  Repaying old debt does not restart the 7 years clock for reporting.  It could restart your states suing SOL if you did not pay in full or make payments.

Message 2 of 6
Tommy5746
Regular Contributor

Re: Repaying debt already gone to collections

Yea


@MissMoney wrote:

I ran up credit card debt while out of work for a few years. I am now back on my feet and have saved enough money to live on for a year should I be out of work again. Thus, I am now ready to begin repaying my debts. The credit card debt all went to collection companies between 2008 and 2011. Someone told me that if I begin repaying these debts, it re-starts the seven-year clock on getting it off my credit score. IS THIS TRUE? If so, I will only re-pay the debts to the companies where I will need another account from when I move (gas & electric co., for example). Thanks.


 

yes and no.. Yes, they CAN restart the "clock" if you start making payments... usually, the charge off will fall off 7 years after your last payment is reported.. However, not all collection agencies do this, but a lot do. Also, just because an item has fallen off of your credit report does not mean that they can no longer take legal action against you! If an item can no longer be reported to your credit report then they may file suit for the unpaid balance, then it goes to court and a lien is placed and wham! a brand spanking new derog is on your report..  This does happen.. Remember that just because it isn’t on your report does NOT mean that it just goes away.. My suggestion is that you attempt to do a PFD.. a pay for deletion.... some companies wil allow you to pay off your debt and once it is paid off they will delete it from your credit report.. some have success with this and some dont... You wont know until you try!

Goal: 700 and an Amex Card!

Chicks Dig Guys With Good Credit Smiley Happy
Message 3 of 6
guiness56
Epic Contributor

Re: Repaying debt already gone to collections


@Tommy5746 wrote:

Yea


@MissMoney wrote:

I ran up credit card debt while out of work for a few years. I am now back on my feet and have saved enough money to live on for a year should I be out of work again. Thus, I am now ready to begin repaying my debts. The credit card debt all went to collection companies between 2008 and 2011. Someone told me that if I begin repaying these debts, it re-starts the seven-year clock on getting it off my credit score. IS THIS TRUE? If so, I will only re-pay the debts to the companies where I will need another account from when I move (gas & electric co., for example). Thanks.


 

yes and no.. Yes, they CAN restart the "clock" if you start making payments... usually, the charge off will fall off 7 years after your last payment is reported.. However, not all collection agencies do this, but a lot do. Also, just because an item has fallen off of your credit report does not mean that they can no longer take legal action against you! If an item can no longer be reported to your credit report then they may file suit for the unpaid balance, then it goes to court and a lien is placed and wham! a brand spanking new derog is on your report..  This does happen.. Remember that just because it isn’t on your report does NOT mean that it just goes away.. My suggestion is that you attempt to do a PFD.. a pay for deletion.... some companies wil allow you to pay off your debt and once it is paid off they will delete it from your credit report.. some have success with this and some dont... You wont know until you try!


No it does not.  Nothing changes the DoFD.  The 7 years does not go by the last payment, it goes by the DoFD, which is the date of first delinquency.  Making a payment or paying a CO'd account will not make it stay any longer.  That would be re-aging and is against the law.

 

DOLA has nothing to do with when an account is excluded from your credit report.

 

 

Message 4 of 6
Tommy5746
Regular Contributor

Re: Repaying debt already gone to collections


@guiness56 wrote:

@Tommy5746 wrote:

Yea


@MissMoney wrote:

I ran up credit card debt while out of work for a few years. I am now back on my feet and have saved enough money to live on for a year should I be out of work again. Thus, I am now ready to begin repaying my debts. The credit card debt all went to collection companies between 2008 and 2011. Someone told me that if I begin repaying these debts, it re-starts the seven-year clock on getting it off my credit score. IS THIS TRUE? If so, I will only re-pay the debts to the companies where I will need another account from when I move (gas & electric co., for example). Thanks.


 

yes and no.. Yes, they CAN restart the "clock" if you start making payments... usually, the charge off will fall off 7 years after your last payment is reported.. However, not all collection agencies do this, but a lot do. Also, just because an item has fallen off of your credit report does not mean that they can no longer take legal action against you! If an item can no longer be reported to your credit report then they may file suit for the unpaid balance, then it goes to court and a lien is placed and wham! a brand spanking new derog is on your report..  This does happen.. Remember that just because it isn’t on your report does NOT mean that it just goes away.. My suggestion is that you attempt to do a PFD.. a pay for deletion.... some companies wil allow you to pay off your debt and once it is paid off they will delete it from your credit report.. some have success with this and some dont... You wont know until you try!


No it does not.  Nothing changes the DoFD.  The 7 years does not go by the last payment, it goes by the DoFD, which is the date of first delinquency.  Making a payment or paying a CO'd account will not make it stay any longer.  That would be re-aging and is against the law.

 

DOLA has nothing to do with when an account is excluded from your credit report.

 

 


I've read numerous posts on this forum which argue both sides.. your side and my side.... from beginers to mods.. So, i will agree to disagree Smiley Happy

Goal: 700 and an Amex Card!

Chicks Dig Guys With Good Credit Smiley Happy
Message 5 of 6
guiness56
Epic Contributor

Re: Repaying debt already gone to collections

That is a federal law, per the FCRA. 

 

If you have read post stating differently, someone was misinformed.  

 

 

 

Message 6 of 6
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.