So annoying! Collection reappeared

Anonymous · ‎04-21-2016

So long story short I had a verizon bill chargeoff i believe in 2010 and for some weird reason it just dissapeared. Cool right? No. I woke up this morining to a new alert on my reports that the collection reappeared dropping my experian down 13 points. I am in NYS and was doing some research and sawthat the SOL is 6 years in my state. My question for all you veterans is if I contact the Collection agency and this debt is more than 6 years from the date of last activity will i be able to dispute it. I am getting married in a month and dont have an extra $1500 lying around to pay this bill. I was planning on using my newly improved credit to refinance my car. Thanks in advance!

Anonymous · ‎04-21-2016

Dispute what exactly, changing the date of last activity will not get you back the thirteen points they will only change the date not remove the collection. If you don't intend to request a pay for delete or pay it off and good will the collection then you will most likely have to wait for it to age off of your credit report.

RobertEG · ‎04-21-2016

The state statute of limitations refers to the time period in which they must initiate civil action should they seek a judgment ordering payment of the debt.

It is totally unrelated to the credit report exclusion period under the FCRA. Thus, it is not basis for deletion of the reported collection.

Collections, regardless of when reported or regardless of paid, unpaid, or SOL status, have a credit report exclusion period based ONLY on the date of your first delinquency on the OC account. Specifically, the CRA must exclude no later than 7 years plus 180 days from the DOFD, and they routinely do their exclusion at approx 7 years from DOFD.

However, that is the exclusion period under the federal FCRA.

As a resident of NYS, you have a shortened exclusion period of five years provided you have paid the debt.

Thus, if you pay the debt, you can get it excluded based on the shortened NYS period that applies to paid charge-offs, collections and judgments.

Anonymous · ‎04-21-2016

Exactly the answer I was looking for^^^^. Ok so I was confused on the SOL part. I think im just going to pay it off after the wedding and see if they will remove it. I dont wat to settle because they tend to leave unwanted remarks on the credit file

Anonymous · ‎04-21-2016

As RobertEG indicates - paying the bill allows you to request the NY 5 year exclusion. Being outside of SOL gives you some bargaining strength to settle for signifigantly less than the $1500 they want....

I would start negotiations at 10% and go from there....

Anonymous · ‎04-21-2016

Norman, I swear you always come through! I have a question about your idea. Now if I pay 10% do you believe they will still do a PFD? Also, in my state any debt charged off for more than $600 I would have to claim on my taxes so I wouldhave to factor that as well. Overall Im not too worried about the taxes, but just really want to get this off my report. Should i just call them up and say its past the 5 year SOL so can we settle for 10% of what is owed?

Anonymous · ‎04-21-2016

@Anonymous wrote:
Norman, I swear you always come through! I have a question about your idea. Now if I pay 10% do you believe they will still do a PFD? Also, in my state any debt charged off for more than $600 I would have to claim on my taxes so I wouldhave to factor that as well. Overall Im not too worried about the taxes, but just really want to get this off my report. Should i just call them up and say its past the 5 year SOL so can we settle for 10% of what is owed?

If you are in NY you don't need a PFD, you just need it to show as being paid. The CRA's are required to exclude 5 year old paid items under NY law. You just have to let them know you are a NY resident.

They may or may not 1099C you for the amount saved, most collectors don't as they are not regulated and audited heavily the way banks are.

Anonymous · ‎04-21-2016

Thank you! I will call them and negotiate for a reduction of the payment. Wait for it to show as paid and then call the CRA's.

Anonymous · ‎04-21-2016

Wow, way to go NY with exclussion in 5 years for paid. I wish we had that law in NJ. OP what was the reason of deletion if you don't mind me asking. I recently had a charge off deleted with a letter of delete due to incorrect reporting with out being paid. I wonder if they can bring it back just because.

RobertEG · ‎04-21-2016

If you filed a dispute over the status not correctly reporting as paid and the CO was then deleted, the deletion was not mandated by the dispute.

Dispute resolution pertaned only to verification or correction of the paid status, not the accuracy of the fact that it was charged off.

Thus, the deletion of the CO was voluntary, and was reported by the creditor, not done by the CRA as an outcome of the dispute, and could be reinserted at any time without restriction upon the creditor.