Will disputing a collection cause it to re age ?

Anonymous · ‎07-27-2017

I have a collection from University Of Phoenix for $764. It's due to fall off in Feb 2019 but right now it says I paid $764 and owe $0 but it says charged off. First I want to know if I dispute it by asking for validation of the debt if that will cause the seven year clock to start over. I am wanting to apply for a home loan in February 2018 so I don't want to do anything that will hurt my score.

Secondly, I am trying to enroll into my local community college but they require any transcripts I have. I have been afraid to request my transcripts online because first I don't know if they will release them because of the charge off showing on my credit and two I am worried that I will somehow restart the clock on the charge off just by logging in to try and get my transcripts. Any advice?

gdale6 · ‎07-27-2017

@Anonymous wrote:
I have a collection from University Of Phoenix for $764. It's due to fall off in Feb 2019 but right now it says I paid $764 and owe $0 but it says charged off. First I want to know if I dispute it by asking for validation of the debt if that will cause the seven year clock to start over. I am wanting to apply for a home loan in February 2018 so I don't want to do anything that will hurt my score.
Secondly, I am trying to enroll into my local community college but they require any transcripts I have. I have been afraid to request my transcripts online because first I don't know if they will release them because of the charge off showing on my credit and two I am worried that I will somehow restart the clock on the charge off just by logging in to try and get my transcripts. Any advice?

If you dispute it and its not deleted it will update status date to current and drop your Fico score, the best way to get it removed is with a GW request directly to the one who is reporting it. A CO is a CO even when its been paid. The CRTP of 7.5 years does not change as far as drop off date. If you paid it I see no prob getting transcripts from them and it would be illegal for them to info your next college anything about your financial affairs.

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/GW-letter-Q-amp-A-Examples-and-GW-Success-Stories/td-p/1573680

Anonymous · ‎07-27-2017

@gdale6 I have heard if you make any contact with a debtor at all that they can re start the clock. If I log into the student portal and just try to order my transcripts just to see if I get lucky and can get them, will that be enough to restart anything? Just to clarify from earlier.. it shows on credit karma that I paid 100% of the debt and have a $0 balance but I didn't pay it. Then it says charge off. Why would they charge it off before 7 years? Just curious. I mostly want to know if it's safe to try and log in using my social and ordering a transcript IF they will even send it with me having that charge off.

RobertEG · ‎07-27-2017

Current balance is the current debt owed to the creditor.

Update of the current balance to $0 does not necessarily mean that the debt was paid. It means you currently owe the creditor a $0 balance.

If the creditor sells a debt, they must update the current balance to $0.

If the creditor has taken a charge-off and has updated the balance to $0 but the debt was not paid, that means they are reporting their sale of the delinquent debt.

The creditor can no longer accept any payment of the debt, including acceptance of a PFD offer.

The new owner can then report their collection on the debt.

As for restarting the "clock," there are two clocks running.

Credit report exclusion is based ONLY on time since the DOFD, with required exclusion no later than 7 years plus 180 days from the DOFD.

Paying, not paying, disputing, or any date of activity on the account will not have any effect on the DOFD, and thus will not "re-age" the exclusion of the charge-off.

The statute of limitations on bringing civil action seeking a judgment is an entirely different clock, and varies based on state law.

In most situations, making a payment on the debt will reset the SOL period, but simply calling them will not.

Calling to request a copy of your transcripts will have no effect on the SOL.