topic Re: Deliquent account OLD help in Rebuilding Your Credit

Deliquent account OLD help

cmc75rnaol — Wed, 05 Jun 2024 22:00:46 GMT

Hello ,

Could use some help here on how to proceed.

I have an old private student loan account AES/MRU with a DOFD ( June 2017) 7 years ago. CRA shows " to go into positive status" this month .

But even though the account is so old, its open/active and the OC never closed/charged off/or sent to collections and they still report balances and late payments every month.

According to Experian, when the account goes into positive status this month , the next month and so on when the OC reports it as late it will be a new late 30 days old starting the process over. Furthermore, she added that when/if they do charge it off, it will be another 7 years from that date.

Is she confused? Do deliquent ,active, non closed/ non charged off accounts just report like this forever? Im hoping she is mistaken.

She has me thinking even though the debt is time barred and SOL has passed, maybe i should call to initiate a payment plan to avoid new credit hits.

so i guess my questions is: what happens to active, deliquent accounts with no payments made for 7 years? And what do i do?

Thanks for any help

Re: Deliquent account OLD help

pizzadude — Wed, 05 Jun 2024 22:26:55 GMT

@cmc75rnaol wrote:
Hello ,
Could use some help here on how to proceed.
I have an old private student loan account AES/MRU with a DOFD ( June 2017) 7 years ago. CRA shows " to go into positive status" this month .
But even though the account is so old, its open/active and the OC never closed/charged off/or sent to collections and they still report balances and late payments every month.
According to Experian, when the account goes into positive status this month , the next month and so on when the OC reports it as late it will be a new late 30 days old starting the process over. Furthermore, she added that when/if they do charge it off, it will be another 7 years from that date.
Is she confused? Do deliquent ,active, non closed/ non charged off accounts just report like this forever? Im hoping she is mistaken.
She has me thinking even though the debt is time barred and SOL has passed, maybe i should call to initiate a payment plan to avoid new credit hits.
so i guess my questions is: what happens to active, deliquent accounts with no payments made for 7 years? And what do i do?
Thanks for any help

I honestly don't know if there's much that you can do to improve the credit reporting side of this if the account is still showing as open. Yes the older late payments will age off at 7ish years but if I understand you correctly it's being reported with new lates each month, is that right ?

If you can negotiate some kind of payment plan to remove the account from credit reporting or remove lates then that might be your best option. Note that the SOL is unrelated to the CRTP so I'd for sure look into this before contacting the creditor to know where you stand in the event you are sued for this debt.

Re: Deliquent account OLD help

cmc75rnaol — Wed, 05 Jun 2024 22:43:53 GMT

thanks for responding.

Correct, the account is aged but remains open with new balances and lates reported every month . I am in year 7 this month.

Cant be sued, SOL passed in Texas. Not sure how to minimize damage here. I thought deliquent accounts go away at this point

Re: Deliquent account OLD help

pizzadude — Wed, 05 Jun 2024 23:29:38 GMT

Each late payments will age off at 7ish years. But unfortunately because this account is open and reporting monthly, each new late will start the clock for that month.

Re: Deliquent account OLD help

cmc75rnaol — Wed, 05 Jun 2024 23:37:24 GMT

Seems so wrong that they can not close account and just report negatively, indefinitely :-(

Re: Deliquent account OLD help

pizzadude — Thu, 06 Jun 2024 00:03:37 GMT

@cmc75rnaol wrote:
Seems so wrong that they can not close account and just report negatively, indefinitely :-(

You can always offer them money to do this -- not sure if you can get the account or lates removed but it's probably worth an attempt.

Creditors are never required to close your accounts ; if they chose not to charge off the balance it will unfortunately remain open.

Re: Deliquent account OLD help

cmc75rnaol — Thu, 06 Jun 2024 00:17:53 GMT

7 years of lates will be gone June 29. I called to verify this with CRA.

How can the late clock restart from here? Thats like saying every 7 years late payments fall off and start over for the life of the deliquency , or until OC does CO. This whole process is confusing. Do you really think after this many years of lates, and going into positive status with all lates removed, that in July it will revert back to 30 days when OC reports? Just seems like positive status is postive status from here on out. No one seems to know for sure. I definitely appreciate your insight.

Re: Deliquent account OLD help

vntrsc — Thu, 06 Jun 2024 13:24:39 GMT

I assume the loan was never paid off. Do you still make payments on this account?

If not, when was the last time you made a payment? You stated that the DOFD is June, 2017. Was May, 2017 the last time you made a payment?

Re: Deliquent account OLD help

MissLiz — Thu, 06 Jun 2024 13:34:01 GMT

In this scenario, it seems likely that the June 2017 late will fall off and the June 2024 late will report. Next month, the July 2017 late will fall off and the July 2024 will report - and so on and so forth- forever (or at least until resolved.) I don't think seven years of lates will fall off.

Re: Deliquent account OLD help

cmc75rnaol — Thu, 06 Jun 2024 15:47:40 GMT

Hello

the loan has never been paid. And has a balance. I have not made a payment since 6/2017. The account is due to go into positive status this month an all lates fall off .
Not sure what happens next month. Hard to believe a new 30 day late reporting on this zombie debt . Thoughts?

Re: Deliquent account OLD help

cmc75rnaol — Thu, 06 Jun 2024 15:49:29 GMT

Hello

according to experian all lates gone.
Trade line turns positive on June 29.
but no one knows for sure what happens next.
how can all this update, then continue to report negatively?

Re: Deliquent account OLD help

vntrsc — Fri, 07 Jun 2024 11:37:45 GMT

@cmc75rnaol wrote:
Hello
the loan has never been paid. And has a balance. I have not made a payment since 6/2017. The account is due to go into positive status this month an all lates fall off .
Not sure what happens next month. Hard to believe a new 30 day late reporting on this zombie debt . Thoughts?

One more question: Is the account reporting as a collection account ? Derogatory account?

Re: Deliquent account OLD help

cmc75rnaol — Fri, 07 Jun 2024 11:42:35 GMT

No. Still open/ active. Original creditor just left it open with the loan servicer. I believe the original creditor went bankrupt. Loan was never charged off or sold. According to the loan servicer,
they filed a claim to do that years ago when it was 150 days late but they never did it.

Re: Deliquent account OLD help

vntrsc — Fri, 07 Jun 2024 12:18:57 GMT

Wow, this is weird. It has not been paid in 7 years, is not charged off, and is not reporting as a derogatory account. Derogatory accounts can remain on a credit report for 7.5 years after the date of first delinquency. 15 U.S. Code §1681c(c) of the Fair Credit Reporting Act (FCRA) specifies that the 7-year reporting period begins 180 days after the delinquency that precedes collection and charge off.

But, your account is not reporting as derogatory and is not charged off. It's true that when an account is not charged off, individual "lates" fall off after 7 years. BUT, you haven't paid at all. Technically, the account should have shown a "60 days" late , "90 days" late, etc. Then, it's charged off. The fact that it's not charged off makes no sense to me. It also makes no sense as to how an account that has not been paid in 7 years could go into a "positive status".

Retail credit cards are required to be charged off after 180 days (or sooner) of nonpayment . Your account is not a credit card account, but an attorney may know the laws regarding private loans, default, and charge off.

You could wait to see what happens next month. Maybe it will go into a "positive status" but I don't see how it could. If it does, I'd keep an eye on it to see if they finally charge it off. That could be a new fight if they try to keep it on your credit report for 7 more years.

Personally, I would consult with a consumer attorney who is very familiar with the FCRA and laws regarding requirements to charge off accounts.

Re: Deliquent account OLD help

JoeRockhead — Fri, 07 Jun 2024 12:40:43 GMT

What I'm gathering from this, and specifically being we're talking about Experian, they've been known to delete entire strings of lates that are of one continuous string. With the other two agencies typically going one by one as their 7 year expiration comes to be (excluding accounts that have been been given a CO status (only late payments reported). This would coincide with why EX says the account would move back to positive status this month, because it would seem they are going to delete the entire string of lates. A new string would then begin again.

Obviously being that the account is still listed as active and open, this cycle could continue on, and on. I don't know of any law, or regulation that requires a lender to charge off, or close an account within a certain time frame. As long as they feel the debt is collectible, and haven't chosen to charge it off, or sell the debt to collections, they can keep it open. While you could in theory start making on-time payments again with no lates showing on EX, that would then have SOL ramifications.

I'd strongly recommend you seek out the advice of a competent consumer debt attorney who can look into all the specifics of your issue and offer you the best assistance and advice as to what your options are at this point.

Re: Deliquent account OLD help

cmc75rnaol — Fri, 07 Jun 2024 13:30:25 GMT

Thank you