topic Re: Do old debts, which statute has expired automatically drop off? in General Credit Topics

Do old debts, which statute has expired automatically drop off?

Anonymous — Thu, 22 Oct 2009 17:13:47 GMT

I have an old debt, the SOL has expired, but the collection agency is sitll reporting the montly negative to the reporting agencies. I have not talked to the agency or negoatiated anything. The last payment on this debt was made about 6 years ago and nothing has happened to start the ticking period over. Will this automatically drop off my credit after 7 years or do I have to initiate it? Am I correct that the 7 year period starts at the date of the last payment or is it 7 years from when the collection agency took it over? The agency reports the date as about a year and half later than the last payment.

Re: Do old debts, which statute has expired automatically drop off?

XAVIERSMAMA — Thu, 22 Oct 2009 17:32:00 GMT

It will fall off based on the DOFD which occurred with the OC. It will fall off 7-7.5 years after the first time you were late. Check your report for the OC and see when they first reported 30+

Re: Do old debts, which statute has expired automatically drop off?

RobertEG — Thu, 22 Oct 2009 21:28:43 GMT

Expiration of SOL has absolutely nothing to do with credit reporting. It is merely your defense in court should the creditor sue for the debt.

The debt is still there, and remains in your CR for 7 1/2 years from a single, date certain of the date of fist default (30-day delinquency) on the original creditor account that led up to the collection. FCRA 605(c). This date has nothing to do with any additional deinquencies after the DOFD, any payments to anyone, or when the CA reported to the CRA.

For credit reporting purposes, you need to know the DOFD on the OC account.

Re: Do old debts, which statute has expired automatically drop off?

Anonymous — Tue, 27 Oct 2009 17:01:54 GMT

Sorry guys, new to this. I am not quite sure what SOL, or DOFD mean. However, I am having a similiar problem. I have an old voluntary repo vehicle that sold in an auction Oct 2003. The last payment reported late was April/May of 2003. It would have been 7 years 2010, however the charge off was purhcased by another collection company Nov 2006. Now the original creditor is showing last activity date Nov 2006 (purchase date of collection co), then new report for collection co, show Nov 2006. So it is listed twice.I have tried to get removed for 2 years and nothing. I am told both will remain for another 7yrs of Nov 2006. I wrote Orig Cr., they couldnt provide anything in writing, but yet verbally informed me new creditor has all info, they did not keep records.

Re: Do old debts, which statute has expired automatically drop off?

llecs — Tue, 27 Oct 2009 17:17:24 GMT

Welcome to the forums!

Graceful07 wrote:
Sorry guys, new to this. I am not quite sure what SOL, or DOFD mean. However, I am having a similiar problem. I have an old voluntary repo vehicle that sold in an auction Oct 2003. The last payment reported late was April/May of 2003. It would have been 7 years 2010, however the charge off was purhcased by another collection company Nov 2006. Now the original creditor is showing last activity date Nov 2006 (purchase date of collection co), then new report for collection co, show Nov 2006. So it is listed twice.I have tried to get removed for 2 years and nothing. I am told both will remain for another 7yrs of Nov 2006. I wrote Orig Cr., they couldnt provide anything in writing, but yet verbally informed me new creditor has all info, they did not keep records.

I'd suggest reading the following:

Common Abbreviations

Credit Scoring 101 - great for knowing what is in your credit score and to see how your score is impacted.

and What Steps Do I Take - great for learning the repair process.

DOLA doesn't matter per the 7-yr CRTP. If it was sold in Oct. 2003, then your DOFD would be slightly before that sometime. It'll fall off 7 yrs from that date (the month you first went 30 days late and didn't recover). DOFD cannot be changed, even if the account was sold. In short, expect it to go away by this coming spring.

Sounds like a CA purchased the debt and they now are reporting. Both the OC and the CA can report at the same time, however, only the CA can report a balance. The OC should be reading $0 as a paid charge-off.

SOL is very important. Each state has their own laws per the statute of limitations a creditor can sue for the balance of the debt. That is beyond 7 yrs in some states. You may want to look that up and make sure that you are beyond SOL before doing anything with this.

Re: Do old debts, which statute has expired automatically drop off?

Anonymous — Wed, 28 Oct 2009 17:35:23 GMT

Thanks. So researching SOL in Texas, am I looking from CA or OC which can possibly sue?

Re: Do old debts, which statute has expired automatically drop off?

Anonymous — Wed, 28 Oct 2009 17:36:40 GMT

Also, you said to look at it coming off next Spring, is that both OC and CA? Or CA will remain from date of purchase from OC?

Re: Do old debts, which statute has expired automatically drop off?

llecs — Wed, 28 Oct 2009 19:06:07 GMT

Graceful07 wrote:
Thanks. So researching SOL in Texas, am I looking from CA or OC which can possibly sue?

The entity who owns the debt can sue.

Re: Do old debts, which statute has expired automatically drop off?

llecs — Wed, 28 Oct 2009 19:11:04 GMT

Graceful07 wrote:
Also, you said to look at it coming off next Spring, is that both OC and CA? Or CA will remain from date of purchase from OC?

CRTP is always based on DOFD. It doesn't matter if it was sold or not. These must come off by spring (summer by the latest...CRTP is actually 7 to 7.5 yrs). Both the CA and the OC must go away. Some OC accounts, depending who the OC is and how they are reporting, may convert itself from a negative account at that time and report for 3 more years. However, any baddie references (lates, CO, etc.) must go away by spring. In fact, if you pull your CR directly from the CRAs you'll see drop off dates listed on TU and EX (3rd party reports like myFICO, CCT, TrueCredit, others won't show this).

Re: Do old debts, which statute has expired automatically drop off?

llecs — Wed, 28 Oct 2009 19:14:12 GMT

Graceful07 wrote:
Thanks. So researching SOL in Texas.....

Looks like it is 4 yrs. You are in the clear so as long as you didn't pay a dime on this debt since the DOFD.

Re: Do old debts, which statute has expired automatically drop off?

Anonymous — Wed, 28 Oct 2009 20:59:54 GMT

You dont realize or maybe you do how much help this is to me. So basically CRA's is each individual is where I should see the drop date. I am part of the TrueCredit. Which is better to be part of? CRA's or 3rd party? Would just like feedback. Let me ask, I have a CC and havent been using it, just paying down. So my credit score dropped from 636 to 611 in a month. When I called TrueCredit to find out why if I havent been late (only have 2 car notes, home and 1 CC) the scored would drop. I was told because I have no activity on my card. I have to use, not just pay it down or score drops.

Re: Do old debts, which statute has expired automatically drop off?

Anonymous — Thu, 29 Oct 2009 00:15:08 GMT

I am part of True Credit, so I dont see it anywhere listed. I can only see OC and zero balance, then noted on CR is Nov 2006 (CA purchased) Do you know where I may be able to find that. I attempted for 6 months to contact OC for copies for payment history and verbally said they have no records, but would not give me in writing.

Re: Do old debts, which statute has expired automatically drop off?

Anonymous — Thu, 29 Oct 2009 00:16:37 GMT

Thanks, so even though I can not see it on report, this must be information CRA have on file. Correct?

Re: Do old debts, which statute has expired automatically drop off?

Anonymous — Thu, 29 Oct 2009 00:27:03 GMT

Very helpful, thanks.

Re: Do old debts, which statute has expired automatically drop off?

llecs — Thu, 29 Oct 2009 00:43:23 GMT

Graceful07 wrote:
You dont realize or maybe you do how much help this is to me. So basically CRA's is each individual is where I should see the drop date. I am part of the TrueCredit. Which is better to be part of? CRA's or 3rd party? Would just like feedback. Let me ask, I have a CC and havent been using it, just paying down. So my credit score dropped from 636 to 611 in a month. When I called TrueCredit to find out why if I havent been late (only have 2 car notes, home and 1 CC) the scored would drop. I was told because I have no activity on my card. I have to use, not just pay it down or score drops.

When starting repair, I suggest doing three things first:

1) Pull all 3 reports directly from the CRA. You can get all 3 for free via annualcreditreport.com. Your EX and TU reports (not EQ) will list a drop off date for most all CA and PR TLs, and will sometimes list a drop off date for the OC account. It will say something like "estimated time of removal is xx/xxxx" or something like that within each account. Third party reports like myFICO or TrueCredit don't show this info. Also, you can get more info off these reports like the full 7 yr history (vs. the 2 on the 3rd party reports), better demographic info, better TL contact info, soft inquiries, and overall better detail. IMO, pull each report at least once quarterly. EQ doesn't have a drop off date but will show your actual DOFD, by which to add 7 yrs for a drop off date.

2) Pull both FICO reports. Scores from TrueCredit are not FICO scores. They are a FAKO score called a TransRisk score. My actual FICO scores have been as much as 100 points higher than my TC score when pulled on the same day. If you go to the scores page in your TrueCredit account, scroll to the bottom. You'll see some fine print that has been greyed out. It mentions in that fine print that the scores from TC are not FICO scores. IMO, ignore the scores and the advice that go along with it. Your FICO can go up while your TC scores go down and vice versa.

3) Subscribe to a Credit Monitoring Service (CMS) like TrueCredit. Unfortunately now, you can only pull once a month, but most CMSs are like that now. Creditchecktotal (CCT) does allow you to pull daily. I use CCT for DW and I personally use NatCity's ID Protect (NCID). NCID looks exactly like TC, but allows you to pull daily, vs. once monthly. Of course, the price is higher with a daily puller. As with all CMSs (except for CreditWatch or ScoreWatch), ignore the scores and advice.

In short, ignore TrueCredit's scores and advice....and ignore that score drop.

Re: Do old debts, which statute has expired automatically drop off?

Anonymous — Thu, 29 Oct 2009 13:57:06 GMT

Good Morning...I wasnt quite sure if I could be part of TC and still sign up for each CRA. Will do. I do have DH signed up with CCT and it is more, wasnt sure which was better. I would like to look into NCID, can I have the web site? Now, at one point I was signed up with CCT and TC, CCT scores were way low compared to TC of course. Again the only negative info were these 2 items. Didnt quite understand that.

Re: Do old debts, which statute has expired automatically drop off?

llecs — Thu, 29 Oct 2009 15:07:05 GMT

Graceful07 wrote:
Good Morning...I wasnt quite sure if I could be part of TC and still sign up for each CRA. Will do. I do have DH signed up with CCT and it is more, wasnt sure which was better. I would like to look into NCID, can I have the web site? Now, at one point I was signed up with CCT and TC, CCT scores were way low compared to TC of course. Again the only negative info were these 2 items. Didnt quite understand that.

Annualcreditreport.com is the link (created by law to allow consumers to get each report for free once a year) by which to get your report. It isn't a service. Follow the questions and you'll be given an option to get any one, two, or all three reports.

My DW uses CCT. It isn't too bad. It doesn't show all the info and reporting isn't all that good, but you'll certainly be alerted to any new bad stuff and is a great way to see your balances and when they report.

BTW, as a subscriber to TC, you can get your FULL TU report from transunion for free at any time. Log into your account and pull up your latest report. Unless the layout changed, click "Dispute information" or "Dispute report" or something like that in the right hand margin. Follow the motions and TU will give you a free report. That report will show all the extra info you won't see in the TC report like soft inquiries and drop off dates. BTW, you don't have to dispute. Save or print your report if you want to and simply log out.

Like with TC, CCT offers the same for your DH's EX report. Tell him to log in and pull up the latest report. There's a dispute link at the top and clicking that will provide a free EX report. That report will show so much more.

Use these backdoor freebies sparingly....one day TU and EX will catch on and put a stop to it. Fun to get free reports in the meanwhile, though.

CCT scores are called PLUS scores, which are FAKOs. You can also find the same scores through other EX services like freecreditreport.com, consumerinfo.com, creditexpert.com, and others. The scores from TC are called TransRisk scores and are also FAKOs. Their score is also available via creditkarma and NCID. Of course, these aren't FICO scores. I personally ignore them.

I think the NCID link is this:

https://www.nationalcity.com/personal/promotions/IdentityProtect/default.asp

Re: Do old debts, which statute has expired automatically drop off?

Anonymous — Tue, 03 Nov 2009 15:15:14 GMT

Confused: I am not sure on this. When I spoke with TC they stated my credit score dropped from EQ from 636 to 611 bc my CC had no acitivity. So, I was told by TC I had to have activity on card to balance the credit score. Now I receive tips on cc and it is stating to pay down on cc as I initially was. Anyone know how this really works.

Re: Do old debts, which statute has expired automatically drop off?

RobertEG — Wed, 04 Nov 2009 01:41:06 GMT

True Credit does develop or produce actual credit scores, and is the last one I would look to for any evaluation of my score.

FICO does not score lack or presence of monthly activity. The risk with showing inactivity for any extended period is only that the OC may reduce your CL, or even worse, close your card. So show some action every couple of months.

I would only add to prior suggestons about determining your prior delinquency dates is to look at your actual account records first, for they have the firs-hand and accurate information. This is particularly true when it come to DOFD, which is commonly mis-reported in credit reports.

For each account, locate the most recent string of consecutive delinquencies on the account. Locate the date you missed your first paymet in that string, regardless of increasing monthly delinquencies in subsequent months. That is your date of first delinqency (DOFD). That will give you a true date to evaluate what the OC or CA is asserting.

Re: Do old debts, which statute has expired automatically drop off?

llecs — Wed, 04 Nov 2009 03:22:07 GMT

Grace07 wrote:
Confused: I am not sure on this. When I spoke with TC they stated my credit score dropped from EQ from 636 to 611 bc my CC had no acitivity. So, I was told by TC I had to have activity on card to balance the credit score. Now I receive tips on cc and it is stating to pay down on cc as I initially was. Anyone know how this really works.

IMO, ignore TC's scores. Lenders don't use them.