7 year bad debt removal?

Question

I have about 3 debts that will be hitting the seven year mark. I know the last one is scheduled for November. Now last time I checked my credit report which was last month it showed some of the same debts but just bought by other creditors. Some of those have actually pass the seven year mark but still showed on my credit report. What would I have to do to get those removed off my credit report if not already removed? Next question I have is what will the creditors most likely do? Will they try anything now that it has been removed off my credit report?

Answer 1

First of all, even though the debt has been sold to another collection agency the FCRA law is still the same.  The debt can not be redated.  Here are the rules of the FCRA.

As of December 29, 1997 the reporting period runs 7 ½ years (7 years plus 180 days) from the date (month and year) of the last delinquency (known as "last missed payment:).

So, regardless of how long a creditor waits to charge off, sell or transfer a debt, they must report the true and correct "delinquent or last missed payment" date (month and year) that preceded the creditor's action.

3. Example after Dec 29, 1997:

A payment was due on January 10, 2000 but, you failed to make that payment and never made another payment. The Creditor waits until August 2000 to take action (charge off, send to collections, sell/transfer debt, etc.) on the debt.

The 180 day count began on January 2000, (your last missed payment month) and runs until July 2000 at which time the seven (7) year reporting period begins and runs until July 2007.

(NOTE) there are some who still insist it is 7 yrs because of a written decision by some FTC clerk, that made no changes to the actual law!

Remember, there are different rules depending upon the type of debt as to how long it will remain on your credit report examples"

Unpaid Tax Lien - Indefinitely

Chapter 7 Bankruptcies - 10 years from date filed.

Public Records - 7 years from the date of payment;

Closed or Inactive Accounts - 10 years from the date of last activity;

Derogatory Accounts - 7 1/2 years from the date of original delinquency;

Now the collection agencies can hound you forever, but can not seek legal action nor can they have the item re-entered on your credit report as per the following:

RE-DATING OF THE DEBT IN VIOLATION OF

[CITE: 15USC1681s-2]  Ã‚§ 623. Responsibilities of furnishers of information to consumer reporting agencies

a) Duty of furnishers of information to provide accurate information (1) Prohibition (A) Reporting information with actual knowledge of errors A person shall not furnish any information relating to a consumer to any consumer reporting agency if the person knows or has reasonable cause to believe that the information is inaccurate. (B) Reporting information after notice and confirmation of errors A person shall not furnish information relating to a consumer to any consumer reporting agency if-- (i) the person has been notified by the consumer, at the address specified by the person for such notices, that specific information is inaccurate; and (ii) the information is, in fact, inaccurate.

If you have any items that were not removed, contact the CRA and dispute the entry.  Here is a link on how to do this from the FTC

http://www.ftc.gov/bcp/menus/consumer/cr...

Download a pdf file regarding how to dispute with CRA's

Now if you have a creditor hounding you on a debt that is too old to collect (often called time barred) and is beyond your states statute of limitations to seek civil action in court, send the the following letter certified mail/return receipt.  This will advise them that you know your rights and should put a stop to the harrasement. (you fill in the blanks)

Today's Date

Your Name

Your Address

Collector's Name

Collector's Address

RE: [insert account number or name of account or name of debt]:

Dear [insert collector's name or company name],

This letter is in response to your [letter dated xx-xx-2008] (copy enclosed) or [phone call on xx-xx-2008], concerning the collection of the above referenced [account or date].

I do not believe I owe what you say I owe therefore I dispute this debt. I am well aware of my rights under the Fair Debt Collection Practices Act (FDCPA) and my state laws so I hope to save both of us a great deal of time by letting you know that not only do I dispute the validity of this debt, I have also checked with my State Attorney General and verified that the Statute of Limitations for enforcing this type of debt through the courts in (insert your state or the state in which the contract was signed) has expired. Therefore, should you decide to pursue this matter in court I intend to inform the court of my dispute of this debt and that the "statute of limitations" has expired.

This letter is your formal notification that I consider this matter closed and demand that you, or anyone affiliated with your company, stop contacting me regarding this or any other matter except to advise me that your debt collection efforts are being terminated or that you or the creditor are taking specific actions allowed by the FDCPA or my state laws.

Be advised that I consider any contact not in accordance with the Fair Debt Collection Practices Act a serious violation of the law and will immediately report any violations to my State Attorney General, to the Federal Trade Commission and, if necessary, take whatever legal action is necessary to protect myself. Be advised that I tape record all phone calls and violations of the FDCPA can result in you or your company being personally fined up to $1,000 per incident.

(Sign above name)

Printed Name

Hope this answers your question.

LEGAL DISCLAIMER:  The advice contained herein is for informational purposes only.  It is not to be construed as Legal Counsel nor Legal Advice.

Answer 2

Most debts over 7 years (actually usually after 3 years) are written off.  Occasionally they will sell these old debts to collection agencies for pennies on the dollar and if the debt collector is able to collect them the collection company keeps whatever it collects.

Contact the reporting agencies that still carry the debts over 7 years and let them know that the debts are over 7 years old and you would like them removed.  Sometimes they will but legally they don't have to, depending on the kind of debt.

Answer 3

they sell to collection agencies to keep them alive

Answer 4

the 7 year thing isn't for credit reports, its when they can SUE you.

It will be taken off your credit report when its taken out. theres no time fram on that.

you owe the debts, nothing you can do will stop that.