cancel
Showing results for 
Search instead for 
Did you mean: 

Unknown debt showed up on Girlfriends credit report last week

Highlighted
Regular Contributor

Unknown debt showed up on Girlfriends credit report last week

First and foremost I want to thank those that helped me in the past and helped me get back on my feet.

 

This is pertaining to my Girlfriend.  Long story short she was looking at buying a house and an unknown debt showed up on her credit report.  She has no idea what it is, but she thinks she cosigned some type of loan for her ex 5 years ago.  

I am waiting for her to get home so I can see what her report actually says.  But she says it just lists the collection agency and the amount of 13k.  Her ex was a real scum bag so I am not surprised.  She did ask him about it and he didn't know and gave her a hard time about being able to buy a house while he just got out of jail after 4.5 years.  He doesn't care nor will he pay any of it.  She had already paid off about 18k of other debts he racked up in her name.

 

The Statue of limitations is 6 years in my state.

 

She still qualifies for a loan but only for 109k and 1% down which still buys a house in a rural area for which she can fix up and resell at some point.

However the question we have is how do we know what this loan is without causing problems to her credit?  Her mortgage guy told her once she contacts them it resets the clock.

 

My thoughts were to have her just buy a house and sit on it for 2 years for that to fall off her credit.  In which case we both would buy something together.  I know this is kinda the crappy way to go, but trying to come up with 13k be very difficult.

 

Any advice would be much appreciated.

 

7 REPLIES 7
Highlighted
Legendary Contributor

Re: Unknown debt showed up on Girlfriends credit report last week

She has various ways to determine the asserted source of the debt, and thus ability to evaluate its asserted legitimacy, that depend upon various scenarios.

 

First, since the debt collector has reported a collection, she can file a dispute of accuracy of the reported collection/debt.

However, a dispute of credit reporting under the FCRA requires that she provide some basis for the assertion of an inaccurate debt.

Since she is apparently not yet prepared to factually contest the asserted debt, as she states she may have co-signed on a loan with her ex, I would wait until she has basis for factually contesting the legitimacy of the debt before filing a dispute.

 

Second, the FDCPA establishes, under section 809, a debt validation procedure wherein a consumer can send a request to a debt collector for validation of an asserted debt and for disclosure of the name of the original creditor.  The name of the original creditor will likely provide the necessary reminder of the loan needed to determine its validity.

DV requests do not require any showing or assertion of a specific inaccuracy in reporting, and thus would likely be the next, appropriate step.  All that is required is that she send a letter to the debt collector requesting validation of the asserted debt under the provisions of FDCPA 809.

 

However, there are two problems with a DV at this point.

First, a DV does not compel any response from a debt collector.  A DV request, if timely, only imposes a cease collection bar on the debt collector, which then remains in effect until such time as they choose to send validation and provide the name of the original creditor.  She will thus not guarantee any response within any set period.

Second, a DV request is timely only after the debt collector has sent a formal collection ("dunning") notice, which sets a 30-day period within which the consumer must send a DV request in order for it to be timely.

The debt collector has apparently not yet sent a dunning notice?

 

A debt collector is required to send dunning notice within 5 days after initiating communication with the consumer.  Sending of dunning notice then triggers the right to send a DV request.

I assume that the debt collector has not sent any communications to her regarding the debt?

 

At this point, she needs more info of the ability to send a timely DV, both of which currently appear to be lacking......

 

Perhaps an informal call to the debt collector will result in their providing the name of the original creditor.

Her "mortgage guy" was incorrect in stating that simply calling the debt collector will reset either the SOL or the credit report exclusion date of their reported collection.  Just do not make any admission of legitimacy of the debt, and only make inquiry for the name of the creditor.

 

 

 

 

 

Message 2 of 8
Highlighted
Regular Contributor

Re: Unknown debt showed up on Girlfriends credit report last week

What is the date of first default and is the collection account still updating monthly?

03/19/19
Experian: 571 | Equifax: 563 | TransUnion: 563

04/06/19
Experian: 591 | Equifax: 566 | TransUnion: 577
Message 3 of 8
Highlighted
Regular Contributor

Re: Unknown debt showed up on Girlfriends credit report last week

We aren't sure on the date.  I am waiting for her to show me the credit report so I look it over more closely.  She says there is no date on the debt listed for her credit report.  The only thing it lists is the collection agency and the debt amount.

The odd thing is it wasn't there last year or any of the previous years.  Why it showed up now out of nowhere is beyond me.

I speculate it has something to do with her ex getting out of jail a few months ago and having a job now.  

Message 4 of 8
Highlighted
Regular Contributor

Re: Unknown debt showed up on Girlfriends credit report last week

Thank you for your informative response.  We will both being taking the next step to verify it is indeed her debt to pay.

My younger sister had her identity stolen and it took over a year to get that straightened out.  I hope that isn't the case.

They have not sent her any notice of the debt in the mail during this whole time.

She bought a car over a year ago and the debt wasn't listed on her report then.

It's just odd that it showed up out of nowhere.

It makes me wonder if it doesn't have something to do with her ex being out of jail a few months ago and working a job. 

Or if it's close to the SOL.

 

If the debt is indeed her responsiblity and she admits no admission it's hers.  Are there any repercussions on her end?  
Does it only reset if she starts making payments?

On my debt they were relentless on my 5th year and sent me notices  every month and on the 6th year it was every 2 weeks.

Message 5 of 8
Highlighted
Legendary Contributor

Re: Unknown debt showed up on Girlfriends credit report last week

There are two separate and totally different periods running against her.

One is the statute of limitations within which a creditor must initiate civil action seeking a judgment, which is set under your individual state law, and the other is the credit report exclusion period, which is uniformly set under federal law for any reported collection as being no later than 7 years plus 180 days from the reported DOFD.

 

Most states provide for reset of the SOL if partial payments are made, so partial payments may result in reset of the period for initiating civil action.

However, there are no reset provisions for credit report exclusion.  It is dependent ONLY upon the date of first delinquency, and no other date.

That applies regardless of whether the debt is  paid, remains unpaid, or is under any type of payment plan.

Message 6 of 8
Highlighted
Moderator

Re: Unknown debt showed up on Girlfriends credit report last week


@fezwhy wrote:

We aren't sure on the date.  I am waiting for her to show me the credit report so I look it over more closely.  She says there is no date on the debt listed for her credit report.  The only thing it lists is the collection agency and the debt amount.

The odd thing is it wasn't there last year or any of the previous years.  Why it showed up now out of nowhere is beyond me.

I speculate it has something to do with her ex getting out of jail a few months ago and having a job now.  


Mortgage pulls always bring out the debt collectors for debts that can still be reported on, they know you cant close without paying them off first.

Message 7 of 8
Highlighted
Regular Contributor

Re: Unknown debt showed up on Girlfriends credit report last week


@gdale6 wrote:

@fezwhy wrote:

We aren't sure on the date.  I am waiting for her to show me the credit report so I look it over more closely.  She says there is no date on the debt listed for her credit report.  The only thing it lists is the collection agency and the debt amount.

The odd thing is it wasn't there last year or any of the previous years.  Why it showed up now out of nowhere is beyond me.

I speculate it has something to do with her ex getting out of jail a few months ago and having a job now.  


Mortgage pulls always bring out the debt collectors for debts that can still be reported on, they know you cant close without paying them off first.


Well that makes sense than.  

Message 8 of 8
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.