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Trying to Get my credit back in shape but....

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Anonymous
Not applicable

Trying to Get my credit back in shape but....

I had 2 accounts that were with Citibank was paying on regular basis..until my world crashed in 2009. Went from 2 income household to Primary provider for myself and child. Then I lost my job at beginning of 2010 and in middle of divorce too. I just stopped making payments to debt as had to focus on making sure all necessary were paid. Fast forward 2015 and my Citibank accounts had been bought by Midland Funding who had contacted me for payment or settlement but still not able to make payment they wanted. They filed and received a judgment against the bigger balance and I still fought it because they wanted way more than what I could pay. (October they attempted wage garnishment and November 2015 was when it began. I did mention to the judge in October when I attempted to get it stopped, that the SOL had been reached. SOL in TN is 6 years.)

Now that I am reviewing my CR, I notice that Midland is reporting it as newer debt. One account was almost open 10 years or more and second account 5 years but both are showing as put into collections with different date by Midland, not delinquent as of 2009. I also noticed that on TU report, the account that is being garnished and reported is showing "payments" made has a comment Placed in Collections/Remarks and Estimated Month and year that item will be removed December 2016.

Divorce wrecked my credit, was 665 and then 520 2 years ago when I checked. I am now in 650 range per Credit.com. 

I don't know if I should filed dispute with CRA or Midland. I am trying to avoid bankruptcy now that I know that SOL for TN is 6 years. Any advice or guidance would be much appreciated. (I am a veteran also so trying to use VA Loan sooner rather than is another reason for not filing bankrucpty post divorce)

Message 1 of 8
7 REPLIES 7
RobertEG
Legendary Contributor

Re: Trying to Get my credit back in shape but....

Credit report exclusion and expiration of SOL are unrelated.

 

Expiration of SOL terminates the ability of a party to bring action in court and obtain a judgment.

SOL varies by state.  If you already have a judgment, that means that the party brought legal action within the SOL period, and thus the SOL for initiating civil action is no longer relevant.

 

Expiration of the credit report exclusion period for a collection is no later than 7 years plus 180 days from the date of your first delinquency (DOFD) on the account that created the debt.  That is the name, regardless of your state of residence and is totally unrelated to expiration of SOL.

If the estimated exclusion date is being shown as 12/2016, then the DOFD was likely in 12/2009 (CRAs routinely set the estimated exclusion date at approx 7 years from DOFD), and the max exclusion period would run until approx. 06/2017

No dispute of its continued showing in your credit report would thus be appropriate until approx. 06/2017.

However, you will likely see the collection excluded in 12/2016, as projected.  That removes the collection from scoring, but does not discharge the debt.

 

The judgment is not excluded based on exclusion of the collection.

A judgment has its own exclusion date of no later than either 7 years from the date of entry of the judgment by the court or until the judgment remains enforceable and unpaid.

Message 2 of 8
Anonymous
Not applicable

Re: Trying to Get my credit back in shape but....

I will definitely be happy if that drops from my CR, however what about the fact that the changed the date to make it appear more recent than what it actually is?

 

Being that Midland funding also has the second account from Citibank, I am pretty sure they are going to try to bring another judgement against me for the second account once they get full amount they were awarded. So still not sure to dispute date with CRA/DC...

Message 3 of 8
rmduhon
Valued Contributor

Re: Trying to Get my credit back in shape but....

What do you mean by being reported as a newer debt?
Message 4 of 8
Anonymous
Not applicable

Re: Trying to Get my credit back in shape but....

Midland is reporting both accounts as being placed in Collection as 03/28/2013 and 03/18/2015, showing Citibank as Original Creditor...no payment history on TU report. 2009 is when I had to stopped making payments due to inability to pay....

The account being reported as in Collections as of 2015..I was in Collections, ChargedOff by Citibank and then Midland bought the debt. They've re-aged both accounts, IMO


@rmduhon wrote:
What do you mean by being reported as a newer debt?

 

Message 5 of 8
RobertEG
Legendary Contributor

Re: Trying to Get my credit back in shape but....

A debt collector reports the date of their collection ("Open date") as the date they received their collection authority.

It is not the date that the consumer became in default under the OC account, or the date of any derogs on the OC account, such as a charge-off.

 

The date of a reported collection does not "re-age" the debt or have any impact on when the reporting will become excluded from the consumer's credit report.

It is essentially irrelevant.

Any collection (other than on a federal student loan) has a credit report exclusion date of no later than 7 years plus 180 days from the date of the first delinquency on the OC account that created the debt.  See FCRA 605(c).

That is a date-certain that applies regardless of when the debt collector reports their collection or whether the debt is paid or unpaid.

Message 6 of 8
Anonymous
Not applicable

Re: Trying to Get my credit back in shape but....

Well interesting because on the 2nd (smaller balance) account with Midland, that has date of 03/18/2015 as being placed in Collections, TU is showing that it will be removed as of 04/2018. So IMO, this information is negatively impacting and it definitely makes it appear to be "new" debt and thus negatively impacting my score.

Message 7 of 8
RobertEG
Legendary Contributor

Re: Trying to Get my credit back in shape but....

A debt collector is required to separately report the DOFD on the OC account no later than 90 days after reporting their collection.

The CRA uses ONLY the DOFD to determine the credit report exclusion date, not any other date, such as the date the collection was reported.

Message 8 of 8
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