Confused about old debt

[Anonymous]

Hi everyone,

I've recently mustered up the courage to face my horrific credit issues.  So I've been reading through the posted threads, trying to figure out the best way to tackle my credit issues, but I'm still kind of confused.  I have about 8 charge offs, totaling around $30,000.  I spoke to a credit counselor who advised me that it's probably best to let them fall off my report, since they're several years old.  However, upon closer look, I noticed that a few of them have been sold to collection agencies, and they're showing a date of February 2007!  But I know that I stopped paying on them since back in 2002.  Can someone please tell me how to clear this up?    

[Anonymous]

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staylorr77 wrote:

Hi everyone,

I've recently mustered up the courage to face my horrific credit issues.  So I've been reading through the posted threads, trying to figure out the best way to tackle my credit issues, but I'm still kind of confused.  I have about 8 charge offs, totaling around $30,000.  I spoke to a credit counselor who advised me that it's probably best to let them fall off my report, since they're several years old.  However, upon closer look, I noticed that a few of them have been sold to collection agencies, and they're showing a date of February 2007!  But I know that I stopped paying on them since back in 2002.  Can someone please tell me how to clear this up?    

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The date you are looking at is possibly one of two things. The Collection Agency is reporting the date that the debt was assigned to them (also could be they bought the debt from the original creditor). Or, they are re-aging (not legal) the debt.

The choice to pay is yours, but the CC was correct, they will fall off your report after 7 years from the date of first delinquency. However, the CA can continue to "try" and collect (even sue). Here is some great info that one of our resident guru's posted....

from Tuscani

I hoping this thread will clear up some confusion on DOLA, DOFD, SOL and how they relate to your credit. Be sure to check out the time reporting thread as well:

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&thread.id=2689

The uniform code of civil procedures gives all the definitions you need to enforce your rights:

http://en.wikipedia.org/wiki/Uniform_Commercial_Code

In a State that accrues (starts) its Legal SOL from the "cause of action date" then the first missed or delinquent date THAT WAS NEVER CAUGHT UP, prior to the charge off date is the starting date, or DOFD, which was the first date that the creditor could have filed suit, i.e. cause of action.

This date is the SAME date as the start of the 7 year reporting period in the FCRA and creditors are mandated to report that DOFD to the CRA's (You should call the CRA to get an accurate DOFD on a TL).

In some states, the "accrual date of the cause of action" is the last item of payment or purchase on a mutual, open and current account. These states are called "last item states" and in some like CA and VA and TX the accrual date can be argued to be a much earlier date than the DOFD if the creditor has stopped charging privileges and/or reduced the credit line to below what was owed.

But Tusc, you refer to the 7 year reporting period, yet the SOL for my state is X, what gives?

You are confusing "Legal SOL" with "Reporting SOL".. The legal SOL usually starts on the DOFD, not the DOLA.

The Reporting SOL ALWAYS starts on the DOFD by LAW in the FCRA and must be reported by the OC to the CRA.

If I make a payment to the CA, does that change the FCRA Compliance Date and cause the debt to be reported for another 7 years?

No. Even making payments to the OC doesn't "reset" the reporting period after CO of the account, or even prior to CO unless you bring the account current. Whether you make payments to the CA or not, it's illegal for the CA to change that date and cause the negative information to remain on your credit report for longer than permitted by the FCRA.

Does the 7 year reporting period start over when a CA/JDB buys the debt?

No. The date the reporting period is based upon depends on the commencement of the delinquency leading to the CO of the debt with the OC. It's illegal for the CA to change that date in order to report that debt beyond the period allowed by the FCRA.

This debt charged off 5 years ago, but the CA is reporting the account opened date as last month. Is this illegal?

No. The CA is allowed to list the date they acquired the account as the "Date Opened". But the date opened doesn't determine the date it must be removed from your credit report due to obsolescence. It still goes by the DOFD leading to CO with the OC.

[Anonymous]

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@Anonymous wrote:

Hi everyone,

I've recently mustered up the courage to face my horrific credit issues. So I've been reading through the posted threads, trying to figure out the best way to tackle my credit issues, but I'm still kind of confused. I have about 8 charge offs, totaling around $30,000. I spoke to a credit counselor who advised me that it's probably best to let them fall off my report, since they're several years old. However, upon closer look, I noticed that a few of them have been sold to collection agencies, and they're showing a date of February 2007! But I know that I stopped paying on them since back in 2002. Can someone please tell me how to clear this up?

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Step one is to determine if any of the collections are still within the SOL. If they are be VERY careful unless you are ready to make good on the debts or fight in court. If the SOL has expired you can DV each of your collections and dispute them with the CRAs. You might get lucky and some might drop off. If any of the debts are still owned by the OC then you might try PFD letters to try and clear some of them up. If the PFDs don't work you can request an investigation of the debts to the CRAs. OCs don't validate but you can request an investigation. This may or may not net you anything you can use to dispute the debts.

If you are not within the SOL then just remember worst case everything will drop in less than two years and if there is not a dire need for credit you might just be better off letting it go. I would however start applying for some credit cards to build some positive TLs so that when these things start being removed or falling off you will have a few years worth of positive credit on your report which will make obtaining better cards/terms easier later on.

Good luck on your quest and don't get too discouraged if things start to move slowly etc. It's taken me 6 months to clear up 9k worth of debt from 2003-2004 but the results have me over 650 and closer to 700 from a starting point of 550. You can do it too.

[Anonymous]

Staylorr,  welcome.  I am new at this but have learned so much.

FIRST  have you read this

http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=2654

2)  Have you pulled you credit files?

3)  You need to know what your CTRP is ( this is your state statue for when you can not be sued in court for a judgement)   

http://www.bankrate.com/brm/news/cc/20040116b2.asp?caret=8

CA always seem to change the date.

4)  look at all your CO and see if you can match to a CA

This will give you the DOFD. Baddies drop pg CR 7-7.5 years after first missed pmt.

5) There are ways to deal with CA

Do NOT ever talk to a CA on the phone!!!!  Everything is done by CNRRR...this protects you.

OK  you stopped paying in 2002.  Your DOFD would be at that time! 2002 would not drop until 2009

Befor you do anything  get your CTRP. You do not want to start anything with CA if they can sue you.

There are several ways to deal & try to get removed from CR.

If you pulled your CR  tell us what you find....do each CR 1 at a time. You might find things listed on 1 and not another.

examp:

Cap 1   opened  1999      CO 7/2002       $5000

A CA would be under a name

Palisades       opened 2007        $6000

this info will help us to understand where you are.

You will get a lot of help!!!

For me I needed to do 1 thing at a time. My middle name is confused!

Once you understand your report it reall gets easier.  You migh pull your hair out but hey  join all of us shinny heads.

[Anonymous]

Thank you all so much for the information and encouragement.  I'm glad I found this place.  Now my situation isn't so daunting. 

[Anonymous]

Take your time.  when disputing be sure to get you File #  or Conformation #. this way you can check online to see how things are going.