topic Re: Where did the collections go? in General Credit Topics

Where did the collections go?

Anonymous — Wed, 12 May 2010 08:54:10 GMT

A little over a year ago I checked my credit report and there were charge offs and collections listed. I just pulled both credit reports and there is nothing listed under the collections section on either report. I still get calls from one cc company (First Financial Bank USA) that when leaving messages states that they are calling from FFB USA to collect the debt. And, every now and then I receive letters in the mail trying to collect a debt, but, as I've said, those bad debts aren't listed on my credit report. Did these bad debts just disappear after a certain time with no effort from me to remove them from my credit report? I ask because a friend of mine with bad debt that was at least 7 years old just finished writing letters to remove the bad debts from her report. Thanks!

Re: Where did the collections go?

Schoolbuskid — Wed, 12 May 2010 14:16:24 GMT

Its possible the CRTP has expired, the CA's can continue to collect forever if they choose. If you are tired of them contactin you send them a FOAD (cease and desist) letter!

Since its deleted i wouldnt worry to much about it, just keep a close eye on your credit reports!

Re: Where did the collections go?

Anonymous — Wed, 12 May 2010 16:29:02 GMT

Thanks for the info!

My new concern is the SOL. I know for sure that the debt with 1st Financial Bank charged off in 2002, but they retained the debt and I've been getting calls from them ever since. Is it possible that the SOL of 4 years for my state (TX) could have started over in about 2006 because: I stated my intention to pay the debt when finished with school, and set up small monthly payment at the time (which I stopped paying a few months later)? I don't want to run the risk of them filing a lawsuit against me if in fact these activities started the SOL over. Is this clear? Could FFB still file a lawsuit against me and win even though I was delinquent enough for the debt to have charged off, but since they retained the debt and I made a promise to pay them (the original creditor), restarted the SOL for this debt in 2006?

I'm sorry! I think this is a confusing scenario to present in writing! If you can make sense of it I would be very appreciative of your input. Thanks!

Re: Where did the collections go?

Anonymous — Wed, 12 May 2010 17:47:03 GMT

Making a verbal agreement, written agreement or making payments will not restart the SOL in TX. It will only be restarted if the account is brought current.

I came to this conclusion doing research on the internet and reading the TX code. If anyone knows differently, please chime in.

Re: Where did the collections go?

Anonymous — Wed, 12 May 2010 20:46:17 GMT

Thanks for the input. I'm hoping to hear what's said before trying to get this company to stop calling me literally 4-8 times per day, but I don't want to tick them off if I'm within the legal SOL. Since this is the original creditor, will a FOAD or other type of written request to stop trying to collect the debt be valid (if it's beyond the SOL)?

Re: Where did the collections go?

Anonymous — Wed, 12 May 2010 21:21:41 GMT

@Anonymous wrote:
Thanks for the input. I'm hoping to hear what's said before trying to get this company to stop calling me literally 4-8 times per day, but I don't want to tick them off if I'm within the legal SOL. Since this is the original creditor, will a FOAD or other type of written request to stop trying to collect the debt be valid (if it's beyond the SOL)?

In the original post I thought you said it was a collection.

But, no, the FOAD letter is for 3rd party colleciton agencies, not OCs.

Re: Where did the collections go?

RobertEG — Thu, 13 May 2010 02:38:14 GMT

Technically, the FDCPA never uses the term "collection agency." It uses the term "debt collector."

This is defined under FDCPA 803(6) to include a totally separate third party, or a creditor attempting to collect his own original debt, as long as the creitor "uses any name other than his own." This would include a separate subsidiary of the OC who is charged with debt collection on behalf of the OC.

If they send you a "collection notice," they are representing themselves as a debt collector, and you can force them to cease further communication with you by way of a letter under FDPA 805(c). regardless of its credit reporting or SOL status.

Re: Where did the collections go?

Anonymous — Thu, 13 May 2010 06:50:13 GMT

When I've communicated with them in the past they've transferred me to their own collections department - using their same name. So I can't ask them to "cease further communication with me by way of a letter under FDPA 805(c). regardless of its credit reporting or SOL status" and expect them to comply. Is this correct? Also, I can't remember receiving a collection notice. They may have sent me one years ago, but I don't remember.

Re: Where did the collections go?

GregB — Thu, 13 May 2010 14:29:23 GMT

This is a good example of why it is important to keep any financial documents. I think everyone will have several times in their life where being able to come up with some old document will save them a chunk of money and hassle.

I recently received collection letters for parking tickets on a vehicle that I sold 8 years ago. Even though I filed the required forms with DMV, the person that bought it did not register it in their name and received a stack of tickets over the next 4 years. 4 years after that, I recived collection letters. Having all of the documents in my scanned documents and the ability to print them and mail them saved me $6,000. I wouldn't have had any way to know anything about this during the 8 years and could easily have decided years ago that the documents were too old to be important.

Re: Where did the collections go?

Anonymous — Thu, 13 May 2010 18:04:51 GMT

@RobertEG wrote:
Technically, the FDCPA never uses the term "collection agency." It uses the term "debt collector."
This is defined under FDCPA 803(6) to include a totally separate third party, or a creditor attempting to collect his own original debt, as long as the creitor "uses any name other than his own." This would include a separate subsidiary of the OC who is charged with debt collection on behalf of the OC.
If they send you a "collection notice," they are representing themselves as a debt collector, and you can force them to cease further communication with you by way of a letter under FDPA 805(c). regardless of its credit reporting or SOL status.

Since it is the OC calling, the FOAD letter will not work.

Re: Where did the collections go?

Anonymous — Thu, 18 Nov 2010 20:49:46 GMT

Just realized I never thanked everyone for their input

Re: Where did the collections go?

RobertEG — Fri, 26 Nov 2010 06:21:35 GMT

A lot of imprecise terms are apparently causing some confusion.

Look at it in terms, initially, not of charge-offs and collections, but rather in terms of continuing unpaid debt that resulted in those prior actions. One single unpaid debt can result in multple CR derogs reportings on the same debt.

Unpaid debt never goes away due to any reporting restrictions under the FCRA. Similarly, neither do the collections or charge-offs reprted to a consumer credit file.

They just become "cloaked."

Any OC or CA is entitled to report to your credit file, monthly, forever, at least the last status on their account. The FCRA places no restirictions on how long anyone can report to your credit file with a CRA. The FCRA also sets no dates of deletion of anything from your credit file, ever, unless its deletion is mandated by way of a succesful resolution of a dispute of the information under FCRA 611(a) or FCRA 623(a)(8)

Hence comes the imprecise, and ofter confusing, terminology of "account drop off.".

The "crediting reporting restictions" of FCRA 605 (a) and (c) simply do not apply to reportings made by an OC or debt collectior to a CRA,

They apply only to what a CRA may contiunue to include in any credit report that they issue after certain dates, such as 7 or 7 1/2 years.

This normally "cloaks" access to this information in your credit file. However, these restrictions are not absolute. Under FCRA 605(b),there are certain types of credit inquires that are totally exempt from the limtiations of FCRA 605(a), thus permitting the CRA to open up your entire CR in an issued credit report. Hence,the reason why the FCRA does not mandate deletion of information from a consumer credit file after certain dates.

"Credit reporting"dates by a credtitor are not the same as "credit report" date restictions for CR inclusion.

Of course, if an OC or CA specifically reports an account deletion to a CRA, the CRA must do so, and that does result in credit file deletion.

Re: Where did the collections go?

Anonymous — Sat, 20 Nov 2010 08:38:28 GMT

So credit reporting restrictions cloak information that is 7 to 7.5 years old unless a certain type of credit inquiry is made that allows the CRA to open up your entire file to the party making the request? Out of curiosity, when would a person be subject to such a credit inquiry?

Re: Where did the collections go?

MarineVietVet — Sat, 20 Nov 2010 16:05:19 GMT

@Anonymous wrote:
So credit reporting restrictions cloak information that is 7 to 7.5 years old unless a certain type of credit inquiry is made that allows the CRA to open up your entire file to the party making the request? Out of curiosity, when would a person be subject to such a credit inquiry?

There are three exceptions to the general reporting time periods.

(1) a credit transaction involving, or which may reasonably be expected to involve, a principal amount of $150,000 or more;

(2) the underwriting of life insurance involving, or which may reasonably be expected to involve, a face amount of $150,000 or more; or

(3) the employment of any individual at an annual salary which equals, or which may reasonably be expected to equal $75,000, or more.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Re: Where did the collections go?

Anonymous — Sat, 20 Nov 2010 19:02:27 GMT

This is very interesting.