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Derogatory account

babybaits
New Visitor

Derogatory account

I received an email earlier from Capital One saying that there was a change to my TransUnion credit report. There was a derogatory account which was correct. I called up and paid it immediately. I have 2 questions related to this. The first is, how come before I did anything my credit score was the same? It wasn't lower? Does it maybe not affect it immediately? Also, how come under Negative, it was 0? I thought a derogatory account was the same as negative.

 

My other question is, while on the phone with the collection agency, he saw another account. It's from a utility company from 8 years ago when I moved and didn't have over $4000 to pay it. I made a payment plan, but if it hasn't been reported to the credit bureaus by now, do you really think it ever will at this point?

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5 REPLIES 5
FireMedic1
Super Contributor

Re: Derogatory account

The updated scores may not have happened. On the other end. "In most states, the debt itself does not expire or disappear until you pay it. Under the Fair Credit Reporting Act, debts can appear on your credit report generally for seven years and in a few cases, longer than that. In some states, a partial payment on an old account may restart the time period during which you can be sued. Similarly, in some states, sending a written statement acknowledging that you owe an old debt may restart the time period during which you can be sued."

Check your states guidelines. Hope it doesnt happened after payment was set up. Good Luck!

https://www.consumerfinance.gov/ask-cfpb/my-debt-is-several-years-old-can-debt-collectors-still-coll... 





Homeowner since Sept 2020. My posts are JMHO. My siggy is not to brag. Just sharing my experiences after BK from learning here from rebuild to recovery from the @ 540's.
Message 2 of 6
Jnbmom
Community Leader
Super Contributor

Re: Derogatory account

Wait a minute they told you that you had an account with a 4000.00 balance from 8 years ago and you just agreed to set up a payment plan??? If this debt is 8 years well past the SOL to collect or report . How do you know it is legit . You really should never agree to pay something like that 

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Message 3 of 6
babybaits
New Visitor

Re: Derogatory account

I know that this is legit. This is something that has been on my mind since I moved from the place. I just got off the phone with the collection agency and I cancelled the payment plan. She told me that they got the account in 2017 and has let it go on probably because of Covid. She said that supposedly they are the 3rd agency to get this account and that the next move would be me going to litigation, which will cost me more money. She told me that electric companies don't just put this on your credit report. You land up in court over it. I don't know how true this is but this has me very concerned and I don't know what move to make.  

Message 4 of 6
GatorGuy
Established Contributor

Re: Derogatory account


@babybaits wrote:

I know that this is legit. This is something that has been on my mind since I moved from the place. I just got off the phone with the collection agency and I cancelled the payment plan. She told me that they got the account in 2017 and has let it go on probably because of Covid. She said that supposedly they are the 3rd agency to get this account and that the next move would be me going to litigation, which will cost me more money. She told me that electric companies don't just put this on your credit report. You land up in court over it. I don't know how true this is but this has me very concerned and I don't know what move to make.  


@babybaits There are limits to how long a debt can be reported and even shorter limits to how long a creditor has to sue you over the debt. The reason it isn't being reported is because of how old the debt is. It is also too old for you to be sure for it. However there are some things that you might have done or said which resets this timeframe. Don't forget that collection agencies job is to get money out of you. They will say or do anything to achieve this.

 

All this said, you know it's your debt and if you have the money, the right thing is pay it but just know the possible consequences of doing so.

Message 5 of 6
OmarGB9
Community Leader
Super Contributor

Re: Derogatory account


@babybaits wrote:

I know that this is legit. This is something that has been on my mind since I moved from the place. I just got off the phone with the collection agency and I cancelled the payment plan. She told me that they got the account in 2017 and has let it go on probably because of Covid. She said that supposedly they are the 3rd agency to get this account and that the next move would be me going to litigation, which will cost me more money. She told me that electric companies don't just put this on your credit report. You land up in court over it. I don't know how true this is but this has me very concerned and I don't know what move to make.  


Unfortunately though you canceled the payment plan, you may have just inadvertently reset the SOL for being sued. It all depends in your state's laws/the laws of the state where the debt occurred. 


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