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Newbie in need of help concerning 23 year old debt

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Anonymous
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Newbie in need of help concerning 23 year old debt

Hi.  I am new to all of this.  Since the building I live in is going co-op and I really want to buy into it when it happens I started checking my credit reports for the first time in my life.  I never thought about it before.  I have to start paying off my credit cards and start getting my scores up.  They're not good. 
 
What I really need help with is a debt that is 23 years old.  It doesn't appear on any credit report, but a collection agency did a check of my credit.  I found out about it by checking my free annual credit report.  The agency is Midland and they did a check in July fo 2007.
 
I think I might have opened a can of worms for myself.  I didn't know about this site or that I could get the help from other people.  I called Midland not realizing that it was a collection agency and they told me that it was for a debt from 23 years ago.  They sold it to an agency called Recovery ...
 
Midland gave me the phone number and I think I did a stupid thing.  I called them.  They tried to get me to pay it.  It was for a Citibank account - they said something similar to a fingerhut account.  I told them I didn't know anything about it.  It couldn't be mine and I disputed it.  They still tried to get me to pay something.  I told them that I never heard anything.  No one ever called or sent letters.
 
I also told them that I wanted proof that it was my debt.  They said that they would look into it and I would hear from them -- that they would send me a letter.  When I get the letter should I respond or ignore it?  Should I DV?  What should I do?
 
On my annual credit report and the FICO report that I recently purchased, there's no Citibank accounts that were closed, only the one that I paid off years ago and closed on my own.  The free annual report that's available to everyone, once a year, shows all the companies that checked your credit reports.
 
Since I am new to this, I don't know whether Midland or Recovery did a hard pull or soft.  What is the difference and how can I tell the difference.  I am really confused now.  I am also worried, because I don't have over $1200 to pay it off it they do prove that it is my debt.  I know the SOL in New York is 7 years and it is way past that.  They said that the last payment on this account was in 1993.
 
What should I do?
 
Please help.
Message 1 of 13
12 REPLIES 12
Anonymous
Not applicable

Re: Newbie in need of help concerning 23 year old debt

Both are CAs   are they both reporting????  never talk to a CA!!!!!!  never sign anything that is mailed to a CA!!!


Message Edited by HappyDays on 03-18-2008 07:14 PM
Message 2 of 13
Anonymous
Not applicable

Re: Newbie in need of help concerning 23 year old debt

I know that this is a stupid question, but how do I know if they are reporting?  Would it show as an open account or just that they did an inquiry of my credit reports?
 
 
Message 3 of 13
Anonymous
Not applicable

Can a collection agency report on a debt that is 23 years old

How do I know if they are reporting?   So far nothing is showing on my credit reports - no collections.  Should I answer their letter?  Should I ask for a DV or should I just ignore it?  They said the debt is from 23 years ago.  I don't even remember it, but at that time I was having a lot of financial problems, so it could be mine.
 
What should I do?
Message 4 of 13
Anonymous
Not applicable

Re: Newbie in need of help concerning 23 year old debt

this is link to abbrevs that we use here     you will learn them fast because the make sense
 
inquires we call  ings       they are in different places on you CR    when you ask for credit  the company will do a hard pull........when a company wants to send you an add like a CC wanting you to open a CC with them  it would be under promotional....they do not get you CR  only your address.
 
If they are reporting you will see MIDLAND  address and phone #  along with report date  amount owed     it will show just like a creditor
 
Have you applied for credit within the past 2 years..........IF so  that would be a hard pull..........they do not group the hard & soft pulls........look at all the names & read what it says at the top of the list.
Message 5 of 13
erika
Valued Member

Re: Newbie in need of help concerning 23 year old debt

I can tell you from personal experience, Portfolio (PRA) is an inquiry only for a debt this old.  They can do so up to twice a year with these junk debts.  Since there headquarters is local for me (Norfolk, VA) I know people that work there so they have given me some valuable insight about how they handle their accounts. A lot of other people will give you advice about not paying it.  Review the advice as it may work best for your situation.
 
A lot of people will tell you not to pay the CA at all and to contact the original creditor.  This may be difficult witht he age of the debt.  But, if you decide to pay it, DO NOT pay full value.  You  could pay as little as 25% with a debt this old.  Definately dont pay more than 50%.  However, remember if they write off more than $600 you will receive a 1099-misc for the difference  The key is to get one of their managers to review the debt.  In your situation, they have no recourse, so they will want to settle.  Another option that most people wont give you is the option of sending a cease and desist letter. A cease & desist prevents them from contacting you as well as prevents them from pulling your credit report again.  Since the inquiry is only on your credit report for 2 years, if it is going to be more than 2 years until you need this mortgage for the co-op this could work for you.  If it is less than 2 years, many mortgage brokers will require you to have a settlement/paid in full letter.
 
Good luck!!

Starting Score: EQ 434 TU 499 4/29/10
Current Score: EQ 651 11/1/2011
Goal Score: 700


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Message 6 of 13
Anonymous
Not applicable

Re: Newbie in need of help concerning 23 year old debt

erika   A CA  does NOT have PP to do a hard pull!!!!!!!   and why would she pay a 23 year old bill  that is not outstanding?


Message Edited by HappyDays on 03-18-2008 07:44 PM
Message 7 of 13
Anonymous
Not applicable

Re: Newbie in need of help concerning 23 year old debt

it would show LIKE an open account!  yes


Message Edited by HappyDays on 03-18-2008 08:04 PM
Message 8 of 13
erika
Valued Member

Re: Newbie in need of help concerning 23 year old debt

I dont think that paying it is the 1st option. But when the letters dont work, which PRA isnt good about PFD letters, it is another option especially if the mortgage is to be relatively soon.
 
Also, I didnt say they did a hard pull (although I think it is). I said it was an inquiry.  PRA usually can validate they debts, even the old ones, which is why someone might want to pay it.  Especially since they will continue to pull a credit report until it is paid (every 9 mths per people that work there).  They are very persistant.  As the owner of the debt, the FDCPA allows for them to pull a credit report twice a year in effort to collect the debt.  For someone applying for a mortgage, this is an issue as a mortgage broker will often send an inquiry to the CA to get info on the account.  My sister ran into this same issue. CA was trying to collect on accounts over 10 yrs old, with a 6 yr SOL.  2 CAs had inquiries on her credit report & she was not able to get a mortgage until they were cleared up.
 
 


Message Edited by erika on 03-18-2008 08:20 PM

Starting Score: EQ 434 TU 499 4/29/10
Current Score: EQ 651 11/1/2011
Goal Score: 700


Take the FICO Fitness Challenge
Message 9 of 13
Anonymous
Not applicable

Re: Newbie in need of help concerning 23 year old debt

No they can not!!!!!!  a CA never has PP to do a hard pull   when the OC closes the account thats it
 
There is NO PP on closed accounts!
 
Ads this the section that has giving collection agencies the ability to collect - the 9th District courts have detrimined this must be from a credit transaction.
§ 604. Permissible purposes of consumer reports [15 U.S.C. § 1681b]
§ 604.(a)(3)(A) intends to use the information in connection with a credit transaction involving the consumer on whom the information is to be furnished and involving the extension of credit to, or review or collection of an account of, the consumer; or
In your quote: Either the customer must intitiate it or to AR
The Gowen opinion letter http://www.ftc.gov/os/statutes/fcra/gowen.shtm
Closed ended accounts- Don't have PP on AR
Nor do closed accounts have PP to AR
As Collection account MUST be reported as closed accounts- they do not have PP under this section-  
§ 604.(a)(3)(F) otherwise has a legitimate business need for the information
(i) in connection with a business transaction that is initiated by the consumer; or
(ii) to review an account to determine whether the consumer continues to meet the terms of the account.
 
 
Message 10 of 13
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