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Hi Everyone. I m need of advice. So, my Honda repo is scheduled to fall off in April 2018. I received a letter and I believe, It has been sold to a different company. In this later, It clearly states that if I pay or make even a partial payment or recognize that it is my debt, It will restart the cycle meaning, it will be on my credit for another 7 years. Question, If I dont do anything with this debt, will it fall off or it will be on my report for another 7 years because the debt was sold to a different company. Thanks for help in advance.
Do you mean April 2019? If your repo is almost 7 years old, do NOT acknowledge or respond to this new company. You are past the SOL, so this is a junk debt buyer trying to score with you.let it fall off in April, IMHO...
Paying or making partial payments can, in many states, reset the statute of limitations for bringing civil action on the debt.
However, credit report exclusion of lates, charge-offs, collections, and repos is NOT affected by whether the debt is paid or unpaid, and will not reset the credit report exclusion period. Credit report exclusion is controlled by FCRA 605(a) and is unrelated to the SOL period for bringing civil action, which is separately set by state law.
You apparently have a charge-off based on a repo.
The credit report exclusion period for a charge-off or its equivalent is no later than 7 years plus 180 days from one date-certain, which is the DOFD with the original creditor.
That exclusion period is not dependent upon or reset by any payment or partial payment of the debt.
@Amiashu12 when was the date of first delinquency and when was the vehicle repossessed? Also what state do you reside in?
Yes, deletion from your credit report is different than the expiration of the SOL. The SOL will depend on what state you're in so it's important to know that.
Deletion of debt from you credit report = 7.5 years from DOFD and does not reset
Expiration of SOL = X years from DOFD unless SOL is reset (by acknowledging the debt as yours, by making a payment, etc); X will depend on your state (where you entered the debt or where you currently reside)
IOW, in certain states it's possible to be sued for this debt even after it has fallen off your credit report which is why we'd need to know what state you entered into the debt and where you currently reside (if different) in order to give you the best advice.