Kabbage Business Loans, Statute of Limitations?

[Anonymous]

The oldest tradeline that is terrible on my credit report is a Kabbage loan in the amount of ~$5K. It is set to fall off of my reports in January and March of 22. However, I am looking to purchase a home this fall and am wanting to get the highest FICO score and lowest interest rate in the process.

The loan had been sold off to TBF Financial, and they have never pursued any action. The date of last delinquency was January of 2015. 

I called Transunion trying to get an early exclusion, but for some reason this isn't set to fall off Transunion until March of 22, so they told me to call back in a few months and ask again, but they were willing to try and dispute it. I was hesitant, because the $5K amount is not something I want to poke if they can still file civil suit to collect. 

BUT - It looks like the statute of limitations in Indiana (where I live) and Georgia (where Kabbage is headquartered) is 6 years. I'm a little confused as to what kind of debt these Kabbage business loans are. I found online that "In Indiana, oral contracts, written contracts for payment of money and promissory notes have a limitation period of 6 years, while written contracts unrelated to the payment of money have a written limitation period of 10 years from the date the debt was incurred."

So if the statute of limitations is passed, can I dispute this and just assume that TBF Financial probably wouldn't waste the time and resources to respond and quit reporting? 

Any experience with something like this would be great. Thanks!

[AzCreditGuy]

---

@Anonymous wrote:

The oldest tradeline that is terrible on my credit report is a Kabbage loan in the amount of ~$5K. It is set to fall off of my reports in January and March of 22. However, I am looking to purchase a home this fall and am wanting to get the highest FICO score and lowest interest rate in the process.

The loan had been sold off to TBF Financial, and they have never pursued any action. The date of last delinquency was January of 2015. 

I called Transunion trying to get an early exclusion, but for some reason this isn't set to fall off Transunion until March of 22, so they told me to call back in a few months and ask again, but they were willing to try and dispute it. I was hesitant, because the $5K amount is not something I want to poke if they can still file civil suit to collect. 

BUT - It looks like the statute of limitations in Indiana (where I live) and Georgia (where Kabbage is headquartered) is 6 years. I'm a little confused as to what kind of debt these Kabbage business loans are. I found online that "In Indiana, oral contracts, written contracts for payment of money and promissory notes have a limitation period of 6 years, while written contracts unrelated to the payment of money have a written limitation period of 10 years from the date the debt was incurred."

So if the statute of limitations is passed, can I dispute this and just assume that TBF Financial probably wouldn't waste the time and resources to respond and quit reporting? 

Any experience with something like this would be great. Thanks!

---

Have you checked what your loan is and what Statute of Limitations it has? When you know this, you will know when the "baddie" will fall off your profile. You are going to have to wait it out and not bother disputing as they might contact the creditor and restart the time again. 

I let CCs go in 2008 and had to wait 7 years for these cards to drop off, the statute of limiations in my state was 6 years but still had to wait 7 years for them to fall off. 

Seems to me if the last date of delinquency was January of 2015, than you could request on Jan 22 for the baddie to be removed

[Brian_Earl_Spilner]

If you dispute and they verify that can be a huge blow to your credit if it wasn't updating before.

[Anonymous]

It updates every month as a collection that still reports. How would it be a big blow to my credit score?

[jaxstraw]

---

@Anonymous wrote:

The oldest tradeline that is terrible on my credit report is a Kabbage loan in the amount of ~$5K. It is set to fall off of my reports in January and March of 22. However, I am looking to purchase a home this fall and am wanting to get the highest FICO score and lowest interest rate in the process.

The loan had been sold off to TBF Financial, and they have never pursued any action. The date of last delinquency was January of 2015. 

I called Transunion trying to get an early exclusion, but for some reason this isn't set to fall off Transunion until March of 22, so they told me to call back in a few months and ask again, but they were willing to try and dispute it. I was hesitant, because the $5K amount is not something I want to poke if they can still file civil suit to collect. 

BUT - It looks like the statute of limitations in Indiana (where I live) and Georgia (where Kabbage is headquartered) is 6 years. I'm a little confused as to what kind of debt these Kabbage business loans are. I found online that "In Indiana, oral contracts, written contracts for payment of money and promissory notes have a limitation period of 6 years, while written contracts unrelated to the payment of money have a written limitation period of 10 years from the date the debt was incurred."

So if the statute of limitations is passed, can I dispute this and just assume that TBF Financial probably wouldn't waste the time and resources to respond and quit reporting? 

Any experience with something like this would be great. Thanks!

---

Statute of limitations has nothing to do with your credit report.

Your state set the time limit (6yrs) on how long the debt collector can persue the debt. 

The FCRA (Fair Credit Reporting Act) is what mandates the Credit Reporting Agencies with how long bad credit events stay on your reports.

One has nothing to do with the other.

Disputing the entry on a statute of limitations criteria of your state would most likely get you no results.

[Anonymous]

I currently have a Kabbage loan which was originally $5,000.  Since the Pandemic, Kabbage has reduced allmonthly payments and thank goodness next month will be my last payment on this loan.  It has added points to my credit score as I have made all monthly reduced payments in a timely manner.  Maybe you should try contacting Kabbage to see if they will settle this debt or wait until January 2022 for it to fall off before you try to purchase your home.  Good luck!