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Old Collections Account on Credit Report - What to do?

MrsNCards
New Member

Old Collections Account on Credit Report - What to do?

Thanks for all of the great content on here already!  Here's my situation.

 

My old landlord (lives a few cities away), notified me that someone came to the door looking for me to serve me papers. I'm not in any trouble with the law, I have a stable long-term job, and haven't been around any situation where I'd be called to court. In talking to a lawyer friend, I checked my credit report. Shame on me for not having done that in years, but sure enough, there was a $2,000 collections account on there from Midland Funding. Date opened: Dec 2014.  Status updated: April 2015. Balance updated Oct 22, 19. Original creditor: Citibank N.A.

 

There are no other blemishes on my report; I have a score of 741 (Very Good). I have two active credit cards (total borrowed below 25%), and all accounts - including my auto loan and mortgage, no cosigners - are marked as "exceptional". I also finally finished paying off $45k in student loans this month, which isn't yet reflected on my report. Total credit available is $55k. Oldest account is 14.8 yrs, avg account age is 8.8 yrs.

 

Now, the only thing I can think this is from is... In early 2014 (Feb or Mar), I went into Best Buy and bought a TV. I had cash on hand (~$2,000), but the guy helping me said that if I opened a Best Buy credit card, I could get 2 points (or whatever it was), per dollar and that it would equate to being able to get my cables and everything else needed for the TV for only a couple bucks (if I applied the points recieved from buying the TV on the card). He also said I could pay the card off right then and there, after buying the TV.

 

So I got the card, got the TV, got the points, paid ~$15 for the cables once the points were applied, and handed the guy the ~$2,000 in cash to pay off the card. This was my second credit card ever. The other one I had in college for emergencies and only had a limit of $300 which I used monthly for gas and paid off monthly. I still have that card and the limit on it now is $25k. I was told when I opened that card that it's bad to close cards, and furthermore that creating longevity with credit card increased your score. So I didn't close the Best Buy card after this happened. I just tossed it in the back of a drawer and never used it again. I ASSUME the guy lied to me and just pocketed my $2,000.  Smiley Sad  I moved the month after, and have been moving from state to state with work promotions ever since. Then last year, I finally settled in MI for good.

 

Car was bought (new and I was given 0% interest for duration of the 5 yr loan) in 2016 and house was bought 2018 (lended without issues and with low interest rate). 

 

Here are my questions:

  • Do I contact Midland and settle/pay this off to delete?
  • Can I contact Midland to verify it even though it's SO old?
  • In knowing there was an attempt to be served, does that change anything? No idea who/which company tried to serve me. They didn't leave info with old landlord. But I am a homeowner. It would take a quick Google search to find my public address.
  • How can I find out when this will drop off my credit report?
  • I'm in MI, where the statute of limitations is 6 years. Assuming it went deliquent 180s after not paying (which was the day I bought it if the sales guy really did just steal it), then is Mar 2014 was purchase date, then Sept 2014 was delinquent date, and statute of limitations date would be approximately Sept 2020 - Is that safe to assume? Dropping off my credit report in Sept 2021?
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1 REPLY 1
gdale6
Moderator

Re: Old Collections Account on Credit Report - What to do?


@MrsNCards wrote:

 

Here are my questions:

  • Do I contact Midland and settle/pay this off to delete? Yes and Midland now has a policy to remove paid collections
  • Can I contact Midland to verify it even though it's SO old? You can try but there is no legal basis for them to do it as one has 30 days from the date of intitial notice (even to an old address) to request validation.
  • In knowing there was an attempt to be served, does that change anything? No idea who/which company tried to serve me. They didn't leave info with old landlord. But I am a homeowner. It would take a quick Google search to find my public address.  Check with the courthouse in the county they attempted to serve you for an action. SOL may come into play as well with you being able to use it asa defense if its past time for a successful judgment. But if it turns out its this collection and you know its yours I would just offer to settle with Midland before the judgment.
  • How can I find out when this will drop off my credit report? It drops at a maximum of 7.5 yrs from the original DoFD set by the creditor. You can request reports by mail and this date should be listed or at least the drop off month listed.

 

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