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

[Anonymous]

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.

[XAVIERSMAMA]

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+

[RobertEG]

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.

[Anonymous]

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.  

[llecs]

Welcome to the forums!

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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.  

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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.

[Anonymous]

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

[Anonymous]

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?

[llecs]

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

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The entity who owns the debt can sue.

[llecs]

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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?

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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).

[llecs]

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

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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.