Very old CO/CLS, Midland Calling

[driftingnorthpole]

It's been almost a year since I started the rebuild, and I "dealt with" everything that I could find in April 2021. All student loans re-habbed, all bills autopay, opensky card, max contrib to 401(k), decent savings account. CHecking all the boxes. Going at a turtles pace from 570 to 640 in that time (FICO 8), which sucks, but it is what it is. The key thing though, is, once I "dealt with" the baddies, I was no longer afraid to answer unknown numbers. No more debt collectors so...

Imagine my surprise when I got a call from Midland Credit today. I had to dig through the CR's I printed off last year and there is this: I can't post an image here, but it says "CO" from Dec 2015 to Aug 2016", then "CLS" for Sept 2016. Looking at my 3 CR's now, this shows up nowhere, as I said, I can only find it on an old PDF I saved. What's the worst outcome here if I just ignore them? Last April, I looked at the dates on this and figured it would be safer to let it age to 7 years then to "touch it" and restart the clock or something. CLueless about this stuff, but panicking, as I have a very specific and time-dependent credit goal and will be in a bad spot if I can't get there. 

 Account Info
Account Name BARCLAYS BANK DELAWARE
Account Number 000111XXXXXXXXX
Account Type Credit card
Responsibility Individual
Date Opened 06/13/2006
Status Closed. $393 written off. $393 past due as of Sep 2016.
Status Updated Sep 2016
9/7/2021 Annual Credit Report - Experian
https://usa.experian.com/acr/printReport?type=CDI 4/38
Balance -
Balance Updated -
Recent Payment -
Monthly Payment $0
Credit Limit $500
Highest Balance $893
Terms NA
 Payment History
 Historical Info
Company Sold MIDLAND FUNDING LLC
2016
2015
2014
2013
2012
2011
2010
2009

[FireMedic1]

If its not on your reports. Midland wont post if you pay it. If it is. They PFD either way.

[OmarGB9]

To add on to what @FireMedic1 said, paying it (if you choose to) wouldn't restart the reporting clock. Nothing can reset that. It would still fall off at 7 years if they did happen to report, but it's a moot point anyway since they offer PFD. The only thing that could potentially be reset is the SOL for being sued, depending on your state's laws, by making a partial payment, promise to pay, or even simply acknowledging the debt.

[driftingnorthpole]

Not sure what "The only thing that could potentially be reset is the SOL for being sued, depending on your state's laws, by making a partial payment, promise to pay, or even simply acknowledging the debt." means. State is TN. So if they sue, the SOL clock starts over again? In other words, do nothing, they sue, the clock starts again, it goes back on the CR's for another 7 years, or, pay (acknowledging the debt), and the clock starts fresh? Very confused...

[vntrsc]

The SOL (statute of limitations) for collecting a debt is different from the 7-year credit reporting period.  

A state's SOL for collection determines how long a creditor or collector has to collect a debt via court (lawsuit).  It can usually be reset by making a payment, agreeing to pay, or acknowledging that you owe the debt. Your state laws can offer guidance as to what action restarts the SOL for collection.

The 7-year reporting period is based on the first delinquency which leads to an account being placed in collection and/or charged off.  Charge-off means it was never again brought back to a current status.  Therefore, once an account is charged off, the date of first delinquency cannot be changed.  It is set in stone.  Making a payment or being sued cannot change that date and will not reset the reporting period.

[FireMedic1]

Just to be safe and nothing new added. Call and get r done. Midland has been known to file suits. And you dont want to go there. Get it in the past ASAP.

[OmarGB9]

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@driftingnorthpole wrote:

Not sure what "The only thing that could potentially be reset is the SOL for being sued, depending on your state's laws, by making a partial payment, promise to pay, or even simply acknowledging the debt." means. State is TN. So if they sue, the SOL clock starts over again? In other words, do nothing, they sue, the clock starts again, it goes back on the CR's for another 7 years, or, pay (acknowledging the debt), and the clock starts fresh? Very confused...

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No, you're convoluting 2 different things. The 7 year credit reporting period is completely separate from SOL. As I said, nothing can reset that. Those negatives will fall off 7-7.5 years from original missed payment (DOFD) no matter what.

The SOL is the period during which you can be sued. Doing nothing would NOT reset this. Doing something COULD reset this, depending on TN's SOL laws for credit cards. I'd suggest looking them up. Regardless, since it's likely way past SOL, and since they're not reporting anyway, you could probably just leave it alone.

[tnhomestead]

TN is 6 years to sue, so if the dofd is sep 2016, they would have until sep of this year to sue. Call and try to make a deal to get it paid off.