Some Repair Qs- Chargeoffs, Collections, etc.

[creditreformer]

For these, assume the SOL for lawsuit purposes has passed. Time for most of these baddies to drop off reports is 2-3 years from now. Note: where a collection agency is mentioned, assume it is one of notoriously problematic junk debt ones (asset, nco, midland, etc.).

Is it worth trying to goodwill 6-7 yr old 30-90 day lates on a closed tradeline that’s otherwise positive?

Is it worth trying to goodwill 3-4 yr old 30-90 day lates on a closed account that was charged off or will this likely cause the OC to send the acct out to yet another sleazy collection agency? SOL for lawsuit purposes has passed and TL will drop off report in 2 yrs.

If you’ve missed the 30 days to DV, is it worth disputing w/collection agencies? Note, SOL for lawsuit purposes has passed and TL will drop off report in 2 yrs. If it’s worth disputing, what’s the best approach to use?

How many collection agencies can be on your reports for the same debt @ 1x?

If a collection agency is on your report, but listed as ‘closed’ for account status, is there a way to remove the collection agency from your report BEFORE the original creditor account drops off your report? If the collection agency lists a different date for ‘date opened’ than the OC, will this cause a problem in terms of the collection agency dropping off of the report @ the same time the OC does?

If neither the original creditor nor the collection agency has reported any activity for 1-2+ yrs, is there anything that can be done to get them off your reports before the drop off date (especially the collection agency)?

If a chargeoff is out of the SOL for lawsuit purposes, would disputing/trying to goodwill old lates cause any negative impact (‘reset the clock?’) beyond the OC possibly sending the acct out to another collection agency?

If the SOL for lawsuit purposes has passed AND the baddie's been on your report for a # of years (3-5) already, is it ever beneficial to pay off a collection agency?

Lastly, I just want to confirm...is the absolute SOL for lawsuit purposes in Calif. for ccs 4 years (e.g., no '6 month extension' that i've read about some states having)?

[Anonymous]

creditreformer wrote:
For these, assume the SOL for lawsuit purposes has passed. Time for most of these baddies to drop off reports is 2-3 years from now. Note: where a collection agency is mentioned, assume it is one of notoriously problematic junk debt ones (asset, nco, midland, etc.).

Is it worth trying to goodwill 6-7 yr old 30-90 day lates on a closed tradeline that’s otherwise positive? Yes, if it means it would add another 3 years of positive history and age vs losing the TL at 7 yrs for it being derogatory.

Is it worth trying to goodwill 3-4 yr old 30-90 day lates on a closed account that was charged off or will this likely cause the OC to send the acct out to yet another sleazy collection agency? SOL for lawsuit purposes has passed and TL will drop off report in 2 yrs.I don't think you will have much luck with this not being paid.

If you’ve missed the 30 days to DV, is it worth disputing w/collection agencies? Note, SOL for lawsuit purposes has passed and TL will drop off report in 2 yrs. If it’s worth disputing, what’s the best approach to use? Send DV to CA's.

How many collection agencies can be on your reports for the same debt @ 1x? The OC and ONE CA that is collecting on behalf of the OC or has bought the debt can report.

If a collection agency is on your report, but listed as ‘closed’ for account status, is there a way to remove the collection agency from your report BEFORE the original creditor account drops off your report? If the collection agency lists a different date for ‘date opened’ than the OC, will this cause a problem in terms of the collection agency dropping off of the report @ the same time the OC does? Stranger things have happened. Date opened is usually reported as the date they received your collection. The main thing to determine is DOFD/DOLA and this is what SOL and CRTP goes by. Always pull hard copies of your CRA's when disputing and keep them forever. (Again, stranger things have happened)

If neither the original creditor nor the collection agency has reported any activity for 1-2+ yrs, is there anything that can be done to get them off your reports before the drop off date (especially the collection agency)? This depends, but be aware that a dispute and a verify will equal pain to your FICO score since it reads it as a 'fresh' ding. If past SOL, DV.

If a chargeoff is out of the SOL for lawsuit purposes, would disputing/trying to goodwill old lates cause any negative impact (‘reset the clock?’) beyond the OC possibly sending the acct out to another collection agency? Disputing does not reset the clock on SOL. Paying the CA or becoming current with the OC would. But since you said charge off, then a charged off account is not open and thus cannot become current. Sure, the possibility is endless if they want to farm it out to another CA.

If the SOL for lawsuit purposes has passed AND the baddie's been on your report for a # of years (3-5) already, is it ever beneficial to pay off a collection agency? I prefer to pay my debt. So to ME it is beneficial. To FICO, no since it treats paid/unpaid collections the same in scoring. On a manual review, it would certainly look better.

Lastly, I just want to confirm...is the absolute SOL for lawsuit purposes in Calif. for ccs 4 years (e.g., no '6 month extension' that i've read about some states having)? Cali is 4 yrs for credit cards. They have until the last day of the month depending on if Cali is a DOFD or last activity state. Check the laws to see.

http://www.bankrate.com/brm/news/cc/20040116b2.asp?caret=8

[Anonymous]

Nice response, stef!

[Anonymous]

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stef37 wrote:

http://www.bankrate.com/brm/news/cc/20040116b2.asp?caret=8

How do you find out if your state is DOFD or DOLA? I see the SOL on that chart in the link, but not whether they are one or the other...? I'm in Texas.

[creditreformer]

Thanks so much for your answers- pretty much what I had planned to do, but I wanted to post here for reassurance before starting.