Need clarification on DOLA & DOFD

[Anonymous]

I'm confused, STILL by these two aspects. Tell me if I have it right.

If i have a collection account from 2002... and I don't touch  it, it will lose power over time and barely affect my score. But if I pay it in 2008, it will show recent action and suddenly become "worse" for my score again, right?

But just because the recent payment action causes my score to go down because of recent activity pertaining to the account, it still won't reset the DOFD and the account will still fall off sometime in 2009, right?

[Anonymous]

Yes, the only thing that might be affected by payment is the SOL.

[jzralnc]

The SOL will depend on your state. But the FDCPA states the TL will remain on your CR up to 7.5 years.

If you pay anything on the account (or have paid anything since your first DOFD date in 2002) your SOL will reset from the time your payment was made.

If your DOFD was 2002, and you have not paid a single penny to anyone since then, I would just sweat it out and wait another year and a half for the TL to drop from your CR.

Have you been contacted by any CA's or the OC since your account passed its SOL date? If so you can tell them the account is SOL and to not contact you again. Then blow a police whistle in their ear and hang up.

Check here for the SOL laws in each state:

http://fair-debt-collection.com/statue-limitations-explained.html
http://fair-debt-collection.com/statue-limitations.html
http://fair-debt-collection.com/SOL-by-State.html
http://www.debtsteps.com/debt-collection-statute-of-limitations.html

[Anonymous]

The SOL you are referring to is the SOL by which they can SUE me... but if I'd PIF, then it won't matter if that SOL is reset. the SOL in my state is 4 yrs, so they are outside that, but I didn't know that when I paid them.

I am talking about accounts I have already paid. I paid off 5 old collections. The month after I paid them off, my score dropped 27 points. I thought it was because the description changed from "unpaid/placed with collection agency" to "paid/after placement with collection agency, or other government delinquency" or something like that.

But I was told by someone else that my score dropped so drastically because those collection accounts now registered the recent activity of my payments.

I want to make sure that the registering of this recent payment activity is not going to cause them to stay on my account for another seven years. If it drops my scores temporarily, I'm ok with that, as long as they fall off next year as they were scheduled to before I paid them.

[Anonymous]

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ivyalmighty wrote:

The SOL you are referring to is the SOL by which they can SUE me... but if I'd PIF, then it won't matter if that SOL is reset. the SOL in my state is 4 yrs, so they are outside that, but I didn't know that when I paid them.

I am talking about accounts I have already paid. I paid off 5 old collections. The month after I paid them off, my score dropped 27 points. I thought it was because the description changed from "unpaid/placed with collection agency" to "paid/after placement with collection agency, or other government delinquency" or something like that.

But I was told by someone else that my score dropped so drastically because those collection accounts now registered the recent activity of my payments.

I want to make sure that the registering of this recent payment activity is not going to cause them to stay on my account for another seven years. If it drops my scores temporarily, I'm ok with that, as long as they fall off next year as they were scheduled to before I paid them.

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You have it right, ivy.  They will still drop when they were supposed to drop before.  Paying them had no effect on the length of time they will report.

Good to see you're able to post again.

[Anonymous]

Yes, it should still fall off in 2009

[Anonymous]

I'm glad to be back, cheddar. I was jonesing for some FICO forum..

My DH was like "wow, you still live here?!" for a few hours... then I checked again and I could post, so he is wifeless again

[Anonymous]

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ivyalmighty wrote:

The SOL you are referring to is the SOL by which they can SUE me... but if I'd PIF, then it won't matter if that SOL is reset. the SOL in my state is 4 yrs, so they are outside that, but I didn't know that when I paid them.

I am talking about accounts I have already paid. I paid off 5 old collections. The month after I paid them off, my score dropped 27 points. I thought it was because the description changed from "unpaid/placed with collection agency" to "paid/after placement with collection agency, or other government delinquency" or something like that.

But I was told by someone else that my score dropped so drastically because those collection accounts now registered the recent activity of my payments.

I want to make sure that the registering of this recent payment activity is not going to cause them to stay on my account for another seven years. If it drops my scores temporarily, I'm ok with that, as long as they fall off next year as they were scheduled to before I paid them.

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Ivy, have you thought about GW letters to those PIF CA's?  I have had 3 old and 1 fairly new PIF collection accounts deleted by sending GW letters.  The old ones did not do much for my score but the report sure looks better.  Still waiting for the newer one to be deleted.  Should get some points for that one.

[Anonymous]

looking,

I TOTALLY would have done that, but I PIFd them all the week before I discovered this site. Now I'm stuck trying to GW them. So far, no go.

[jzralnc]

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@Anonymous wrote:

The SOL you are referring to is the SOL by which they can SUE me... but if I'd PIF, then it won't matter if that SOL is reset. the SOL in my state is 4 yrs, so they are outside that, but I didn't know that when I paid them.

I am talking about accounts I have already paid. I paid off 5 old collections. The month after I paid them off, my score dropped 27 points. I thought it was because the description changed from "unpaid/placed with collection agency" to "paid/after placement with collection agency, or other government delinquency" or something like that.

But I was told by someone else that my score dropped so drastically because those collection accounts now registered the recent activity of my payments.

I want to make sure that the registering of this recent payment activity is not going to cause them to stay on my account for another seven years. If it drops my scores temporarily, I'm ok with that, as long as they fall off next year as they were scheduled to before I paid them.

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Your score, possibly, could have dropped because Fico put you in a different pool of borrowers. They have people jumbled up in to pools. People with bad credit, fair, good, great. you may have been located in the bad credit pool, but been better than many of those in that pool. but then you moved yourself in to the fair or good credit pool with the payoff's. In that new pool, you might not be ranked high. Look at it like a minor league ball player being called up to the majors. you were a star in the minors, but you're average in the majors. it might take a few months and some work on your utilization.

See the item"Among all the bankrupts, you're the best" in the article below to read about the groupings:
MSN Money


Message Edited by jzralnc on 04-23-2008 05:49 PM