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Can a collection come back on credit report?

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titanofold
Established Contributor

Re: Can a collection come back on credit report?


@Anonymous wrote:
What do you mean freeze your reports before aping for a mortgage? Do you mean opting out before apping?

I thought if you freeze your reports then it would make it difficult to apply for the mortgage.

Right, the lender will insist the reports be unfrozen, and opting out doesn't do anything, either, other than minimize the amount of pre-approval offers.

 

To the OP, that Midland came out of the woodwork, probably doesn't have much to do with the mortgage, but that they saw you're still alive. I would have them provide a DV (I think that's what you want) so that you can be sure they actually can collect on the money, check out what the SOL is on collections for your state, and also instruct them that they may only communicate by letter. Once they've provided proof that they are the ones that can collect the debt, offer to settle with the terms being it cannot be reported and that whatever small amount (think a penny on the dollar small amount) will be considered payment in full. Do not admit to it being yours, don't be rude,. Do be cordial, and do say you wish this matter to be settled quickly.

Scores2013-09-21Current
Equifax630 (LP)755 (CK)/749 (Quizzle)
Experian640 (FCR)FICO 707 (Amex)
TransUnion588 (CK)FICO 754 (Barclaycard)
Message 11 of 23
Wovenyarn
Regular Contributor

Re: Can a collection come back on credit report?

Which SOL matter? The state the debt was acquired in or the one I currently live in?

I've seen the opt out truck mentioned multiple times in the mortgage loan threads on MyFico.
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Message 12 of 23
Wovenyarn
Regular Contributor

Re: Can a collection come back on credit report?

Trick...typing on iPhone.
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Message 13 of 23
Anonymous
Not applicable

Re: Can a collection come back on credit report?

Many bottom feeding collectors buy information, the same info used to send prequal letters, to match up with any potential collections due no matter the sol.
Message 14 of 23
RobertEG
Legendary Contributor

Re: Can a collection come back on credit report?

A debt collector can report to a CRA at any time.

Whenever a debt collector does report, they must provide the DOFD on the OC account to the CRA.  The CRA then uses the reported DOFD to determine whether or not it is excluded from credit reports they issue.

The only limitation within the FCRA on the resinsertion of previously deleted information is when the information was deleted based on a finding of lack of verification in a dispute.  In that situation, the party seeking reinsertion must provide a certification of accuracy of the information along with their reporting, and the CRA must accept that certification.  If the prior deletion was not based on a finding in a dispute, there is no restriciton on its reinsertion.

 

The issue of exclusion of the reported collection, assuming it was not deleted based on a prior dispute,  thus becomes whether or not it has been more than 7 years plus 180 days from the reported DOFD.

If so, the CRA cannot include the collection in any credit report they issue.

If more than 7 years, they will most likely also exclude the collection under their normal early exclusion practice.

 

You thus need to know the reported DOFD in order to determine whehter it can be included in your credit report.

Message 15 of 23
Wovenyarn
Regular Contributor

Re: Can a collection come back on credit report?

Very, very good information. What does DOFD stand for?
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Message 16 of 23
RobertEG
Legendary Contributor

Re: Can a collection come back on credit report?

DOFD is short-hand for Date of First Delinquency.

 

Under FCRA 605(c), the date you first became delinquent on the debt with the original creditor, and thereafter remained delinquent until the debt was either charged-off or placed for collection, is the only date that controls when any reported charge-off or collection must become excluded from your credit report.

 

The CRA monitors the reported DOFD, and must exclude any reported collection or charge-off, regardless of when it occured or was reported, no later than 7 years plus 180 days from the DOFD.  Credit report exclusion of a CO or collection is thus a single date-certain based only on DOFD.

Message 17 of 23
Wovenyarn
Regular Contributor

Re: Can a collection come back on credit report?

Well I'm certain that it's been over 7 years so if I'm reading your response correctly, the CRA would not put it back on my CR as long as the DOFD is 7 years plus 180 days?
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Message 18 of 23
RobertEG
Legendary Contributor

Re: Can a collection come back on credit report?

Correct.

The only way it would become included is if they report a DOFD that is less than 7 plus 180 ago.

The procedure that a debt collector must follow in obtaining and reporting the DOFD is set forth in detail in FCRA 623(a)(5).

To knowingly report a DOFD that is not in complaince with those requirements is a serious violation of the FCRA.

Message 19 of 23
Anonymous
Not applicable

Re: Can a collection come back on credit report?


@Anonymous wrote:
Many bottom feeding collectors buy information, the same info used to send prequal letters, to match up with any potential collections due no matter the sol.

No they don't. They are prohibited from obtaining those lists as they are for the express purpose of granting credit, and CAs do not grant credit. They simply subscribe to the CRA's "collection score" listings, which is not controlled by opt in/out. Google "collection score" and read the first page that come up from Experian.

They are also allowed to do soft pulls, which will often alert them to a mortgage app - again, not controlled by opt in/out.

Message 20 of 23
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