Very old debt?

Aabidano · Post by **Aabidano** » March 23, 2009, 12:39 pm

So I had a Sears card years ago (~1990?) that I moved\forgot about, etc... Never heard from them again, until I saw it on my credit report in 1998-ish. When I tried to pay off I couldn't, they had no record of it and it was removed from the report.

So now another bunch of years goes by and a scavenger debt collector picks it up and send me a bill, "pay half now and you're done!".

There's a decent chance it is my debt, so what to do? Pay it and reset the clock so they can harass me? Or just ignore it as it's well beyond the FL statue of limitations to sue and all actions are past what they can put on my credit report.

It's only ~$100 that they're asking for, seems like the credit report said $400 way back when.

Canelek · Post by **Canelek** » March 23, 2009, 12:43 pm

Yeah, that's easy.

Collection agencies will still buy a buttload of assets even if they are past the normal 7 years SoL. I still get some from time to time and ignore them.

Important thing is if that item shows up on your credit reports. Most likely, it is not there anymore, so you are clear...the collector is just trying to get you to pay them, even though the debt can no longer be counted against you on the report.

If for some reason it does show up on one or more of your reports, simply dispute it.

Drasta · Post by **Drasta** » March 23, 2009, 12:43 pm

imo as long as you know your 100% in the clear .. say fuck it ... it could be a good ol scam ... otherwise if u wanna be a good honest person ... contact the place (actually call sears and ask for their collections number to make sure ur not getting scammed) and verify that you do owe them money ...then just pay it if u want and know your not getting scammed

Canelek · Post by **Canelek** » March 23, 2009, 12:47 pm

DON'T PAY!! DON'T CALL!

Never communicate with them. You will just wind up paying money AND having a nasty hit on your FICO ratings. Legally, if you have not had ANY activity (including phone call) in the last 7 years, SoL has been reached and you are clear...just make sure to pull your credit reports and check.

So many people get fucked over this way.

Aabidano · Post by **Aabidano** » March 23, 2009, 1:00 pm

Just got an Experian report the other day, nada there.

Drasta · Post by **Drasta** » March 23, 2009, 1:19 pm

then it doesn't exist, dont pay it and ignore! =-P

Canelek · Post by **Canelek** » March 23, 2009, 2:17 pm

Aabidano wrote:Just got an Experian report the other day, nada there.

Didn't think it would. I have this one collection agency that sends that bullshit out every few months (save now! 50% off!!11! your own unsecureLOLered credit card!). This was from something similar from 1994 or so. Of course, they send them out because there are folks who will call or pay or both. Hey, that's how they make money...

Sabek · Post by **Sabek** » March 23, 2009, 2:46 pm

Yeah credit collectors will buy old and outdated debt for pennies on the dollar and then hope they can scare people into paying something they don't have to.
They will threaten all kinds of action and be belligerent etc, but it doesn't mean you have to pay.

Winnow · Post by **Winnow** » March 23, 2009, 8:14 pm

Never contact dept collectors, especially if it's within the seven years as your seven year write off will be refreshed.

Example:

It's been 6.5 years since you stopped paying on a credit card. You get a letter in mail trying to settle the debt. In six months, that debt will fall ff your credit report. If you contact the collection agency and setup payment, you're screwed two ways. First, you have to pay the debt, second, the debt stays on your credit report as a collection agency.

miir · Post by **miir** » March 24, 2009, 10:14 am

Winnow wrote:Never contact dept collectors, especially if it's within the seven years as your seven year write off will be refreshed.

It's called statute of limitations, dumbass.

Funkmasterr · Post by **Funkmasterr** » March 24, 2009, 11:17 am

Nevermind.

Winnow · Post by **Winnow** » March 24, 2009, 11:18 am

miir wrote:
Winnow wrote:Never contact dept collectors, especially if it's within the seven years as your seven year write off will be refreshed.
It's called statute of limitations, dumbass.

I wasn't asking what it was called asswipe.

Bubba Grizz · Post by **Bubba Grizz** » March 24, 2009, 12:16 pm

Here's a novel thought, PAY YOUR DEBTS!

Funkmasterr · Post by **Funkmasterr** » March 24, 2009, 12:17 pm

Bubba Grizz wrote:Here's a novel thought, PAY YOUR DEBTS!

I intend on paying what I can't get rid of, but I need a faster solution. We need to close on a house this year and there is no way I could make a significant dent in my debt in that time

Fairweather Pure · Post by **Fairweather Pure** » March 24, 2009, 12:33 pm

I got rid of my debt by paying it.

Funkmasterr · Post by **Funkmasterr** » March 24, 2009, 12:37 pm

Fairweather Pure wrote:I got rid of my debt by paying it.

My bad, it's been a while since I asked for advice around here, now I remember why.

Fairweather Pure · Post by **Fairweather Pure** » March 24, 2009, 12:38 pm

My advice is to be responsible and pay your debt. Since when is doing the right thing considered bad advice?

Funkmasterr · Post by **Funkmasterr** » March 24, 2009, 12:40 pm

Fairweather Pure wrote:My advice is to be responsible and pay your debt. Since when is doing the right thing considered bad advice?

It's not bad advice. However I clearly stated why that wasn't a solution for my current issue. I guess I also should have issued a disclaimer that I wasn't interested in any smart ass or sarcastic responses?

Fairweather Pure · Post by **Fairweather Pure** » March 24, 2009, 12:45 pm

Suggesting paying your dues instead of trying to dodge and avoid them is not sarcasm.

This is what I would do in your situation...

Find out the total of all your bad debt. This is all your debt that you have incurred and not paid for whatever reason. I would then work out a payment plan to pay off all that debt, starting with the highest to lowest. After that was complete, I would re-apply for a home loan.

Take responsibility. Take care of things. Then move forward.

Do it in that order.

Ashur · Post by **Ashur** » March 24, 2009, 12:55 pm

With the Nu-Dem incentives to buy a new home, it may actually be to his advantage to get the loan first and then use obamacash to pay down his debt (1. Assuming he can qualify w/o paying it down 2. Doesn't blow it on stuff for the new place).

Bubba Grizz · Post by **Bubba Grizz** » March 24, 2009, 1:09 pm

Military helped me buy my home. Just one of many benefits from the service.

Ashur · Post by **Ashur** » March 24, 2009, 1:28 pm

Bubba Grizz wrote:Military helped me buy my home. Just one of many benefits from the service.

High-5 Bubba. Ditto.

Aabidano · Post by **Aabidano** » March 24, 2009, 1:45 pm

Ashur wrote:
Bubba Grizz wrote:Military helped me buy my home. Just one of many benefits from the service.
High-5 Bubba. Ditto.

Same deal, still have the wife's VA cert too in case we buy again.

Canelek · Post by **Canelek** » March 24, 2009, 2:29 pm

Well, paying your debts is the way to go... nice job captain(s) obvious.

However, there are those of use who simply could barely afford rent, at some point in our lives. Late pays, defaults, chargeoffs, blah blah--they add up and that all adds up to cripple our credit ratings. It is a game. A retarded game that we all must play if we are to get out of debt and repair the ever-important FICO rating.

Funk - Those services do the same thing you can do yourself. There are a couple boards out there that help you along the way (can't remember names). Provided to you are strategies as well as certified mail templates that are very handy. Save your money and do it yourself. It is all legal and well within your rights as a consumer. There is no penalty for disputing, although you should try to make a valid point with each item and not spam the bureaus.

You said some were about 5 years old? Well, make sure to not the date of Last Activity. that is your starting point for the statute of limitations clock. Grab all 3 credit reports first off and start taking notes. Look not only for validity, but any sort of flaw. Was it a medical bill? Bam! Dispute that shit--it ain't legal to have that there.

Do this as well; go to http://www.myfico.com and sign up for their tracking service. Email alerts on changes are good to have. Plus you can Google 'myfico promotion codes' to get discounts. This site helped me bring my scores from the low 500s to the mid 700s in a couple years. Granted, I had some key items roll off due to SoL (7 years). Also, I disputed online (not best choice) any key items I saw that made no fucking sense to me. Guess what? It worked.

Most important thing is to pay down any open and healthy credit lines. Credit history is IMPORTANT. 30-day, 60-day lates are bad. establish GOOD credit, pay off every month and do whatever you can to dispute bad shit. Your scores will improve.

It is a scheme and a game. Play the game using your rights under the Fair Credit Collection Act or whatever the fuck it is called.

Good luck! I am happy to provide any advice on this matter because it has certainly improved my life.

Canelek · Post by **Canelek** » March 24, 2009, 2:51 pm

Related topics:

New accounts – How these affect your FICO® score

The effect of a new credit account on your FICO® score will vary and depends on many different factors.

A new account on your credit report may initially lower your FICO® score because it can be an indication that you need more credit. Typically, consumers with financial difficulties need more credit and are less capable of paying their debts.

While your FICO® score may drop when a new account first appears on your credit report, it can positively affect your score over the long term if it reflects responsible use of credit. That means making all payments in full and on time. Opening a new account can also help your FICO® score over time if you had minimal credit history with very few accounts when you opened the account.

How a new account impacts your FICO® score also depends on your mixture of credit. For example, opening a new mortgage account may be more favorable to your score than opening a sixth credit card.

A new account is not necessarily one that was just opened. You may have opened a new account with a creditor several months ago, and the creditor did not report the account until recently. If the account is in bad status (such as a history of late payments or a large amount past due), your FICO® score could drop significantly when it first appears on your credit report.

Account balance increases – How these affect your FICO® score

A balance increase on an account may lower your FICO® score.

A large balance on an account, or balances on many accounts, can be a sign that you may be having trouble paying back debts. Since your FICO® score measures the chances that you will pay back a debt, larger balances or balances on more accounts can lower your score.

"Maxing out" a credit card or other line of credit is when the balance on the account comes close to the account's credit limit. This can dramatically lower your FICO® score because it is often a sign of a consumer who desperately needs credit and may not be able to pay it back.

The drop in your FICO® score caused by a balance increase can be reversed by paying down the balance.

Syenye · Post by **Syenye** » March 24, 2009, 2:52 pm

Canelek wrote:There are a couple boards out there that help you along the way (can't remember names).

I would start with http://consumerist.com.

Canelek · Post by **Canelek** » March 24, 2009, 2:55 pm

I think the one that was helpful to me were the forums at http://www.creditboards.com. WebSense blocks it at work, so it must be the right one.

Funkmasterr · Post by **Funkmasterr** » March 24, 2009, 2:57 pm

Thanks a lot Syenye and Canelek! I really appreciate the info. I was kind of thinking that might be the case but was unsure of where to start.

Aabidano · Post by **Aabidano** » March 24, 2009, 3:03 pm

The whole credit rating system is a scam to create more debt, to certain extent. I agree with the need for it's existence, the way it's used and implemented really pisses me off.

In my instance as mentioned above it's in my best interest to not pay and ignore them. I'll acknowledge it's wrong not to pay a just debt, however the potential penalties to me far outweigh the amount owed.

There is no statue of limitations on debts. They only apply to how long it can impact your credit rating, and for how long you can be sued.

Canelek · Post by **Canelek** » March 24, 2009, 3:10 pm

There is no statue of limitations on debts. They only apply to how long it can impact your credit rating, and for how long you can be sued.

Yup. That is a very important point. There are some, not many, but some collectors who will aggressively pursue you. I found that out the hard way a few years ago.

Luckily, most just spam out mail. They have far too many accounts, old or not, to give much attention to detail. They profit via bulk.

Deal with credit bureaus directly, I cannot stress this enough.

If you do feel like they are going to sue you (you will get a warning, then get served), try to work it out with the collector before they sue you, of course. That is a last resort, and unlikely to happen anyway.

Fairweather Pure · Post by **Fairweather Pure** » March 24, 2009, 3:11 pm

Debt scores are a loaded gun, but in the case of bad debt you've handed them the bullets. Pay for what you buy, even if it is on debt. Uphold your end of the bargin.

Funkmasterr · Post by **Funkmasterr** » March 24, 2009, 3:16 pm

Canelek wrote:
There is no statue of limitations on debts. They only apply to how long it can impact your credit rating, and for how long you can be sued.
Yup. That is a very important point. There are some, not many, but some collectors who will aggressively pursue you. I found that out the hard way a few years ago.

Luckily, most just spam out mail. They have far too many accounts, old or not, to give much attention to detail. They profit via bulk.

Deal with credit bureaus directly, I cannot stress this enough.

If you do feel like they are going to sue you (you will get a warning, then get served), try to work it out with the collector before they sue you, of course. That is a last resort, and unlikely to happen anyway.

Yeah I was wondering if you getting the debt wiped off of your credit score would stir the hornets nest up and get the debt collectors on your ass again. Most of them have long since given up any form of contact with me, except for on occasion when one of them sells my debt to a different agency and I get a few letters from them before they give up too.

Canelek · Post by **Canelek** » March 24, 2009, 3:19 pm

While that is good advice, and should certainly be followed during and after credit repairs, it will not solve old debt. This thread is about playing the credit game and getting out of a hole.

Believe me, after getting all my credit shit fixed, I am a hawk with my credit.

Canelek · Post by **Canelek** » March 24, 2009, 3:21 pm

Once you have something removed, they cannot easily add it back.

When you dispute an item to the credit bureau, they in turn make the collector prove that the debt is valid. If they cannot prove it within 30 days, it is removed and they cannot re-add the same item.

masteen · Post by **masteen** » March 24, 2009, 9:31 pm

The only debt collectors I ever called were ones calling my number for the previous tenant at my residence. They'd get two calls from me, a polite one telling them that the person they were looking for was not reachable at my number, and (inevitably) a second one telling them to cease and desist calling my number looking for some deadbeat who just happened to live in this place before I did.

Ashur · Post by **Ashur** » March 25, 2009, 12:25 pm

Aabidano wrote:There is no statue of limitations on debts.

miir · Post by **miir** » March 25, 2009, 12:32 pm

There is no statue of limitations on debts. They only apply to how long it can impact your credit rating, and for how long you can be sued.

There most certainly is a statue of limitations on debt collection.

Canelek · Post by **Canelek** » March 25, 2009, 1:03 pm

I think what he was saying is that they can still send you spam, but they are impotent to act on it.

Post by **Xouqoa** » March 25, 2009, 1:11 pm

I will also add that if you ever need debt counseling to help consolidate your debt and avoid bankruptcy, make sure you deal with a non-profit organization.

Aabidano · Post by **Aabidano** » March 26, 2009, 7:02 pm

miir wrote:
There is no statute of limitations on debts. They only apply to how long it can impact your credit rating, and for how long you can be sued.
There most certainly is a statute of limitations on debt collection.

No, there isn't, in the US at any rate. If you owe a dollar, you owe it forever. It continues to be a just debt. As I said you cannot be sued after 1 limit, it cannot impact your credit rating after the other.

A creditor can send you mail forever, you still owe the money though it's meaningless from the debtors perspective after 7-ish years.
*Edit - fixed spelling to unwind Aslanna's panties.

Aslanna · Post by **Aslanna** » March 26, 2009, 7:29 pm

It's STATUTE for god sake!

Anyway, it seems to vary by state. Can check here for more info.

Aabidano · Post by **Aabidano** » April 1, 2009, 9:27 am

A large balance on an account, or balances on many accounts, can be a sign that you may be having trouble paying back debts. Since your FICO® score measures the chances that you will pay back a debt, larger balances or balances on more accounts can lower your score.

What do they consider a "large balance"?

I've got to replace my AC unit and was just going to put it on Visa and pay it off in the next month or two, I've got a $0 balance now. Is that sort of jump an impact?

Post by **Sylvus** » April 1, 2009, 10:35 am

Aabidano wrote:
A large balance on an account, or balances on many accounts, can be a sign that you may be having trouble paying back debts. Since your FICO® score measures the chances that you will pay back a debt, larger balances or balances on more accounts can lower your score.
What do they consider a "large balance"?

I've got to replace my AC unit and was just going to put it on Visa and pay it off in the next month or two, I've got a $0 balance now. Is that sort of jump an impact?

I don't think AC would be "a large balance" depending on your total credit limit. One of the things they check is the ratio of how much debt you're carrying vs. the amount you have available. I had like $8k or so (after slowly paying down from $12k a couple years ago) on credit cards, with close to $100k total limit, and had great credit (like high 790s score). I was immediately approved for a loan last November.

I have also never had debt collection called on me and never been more than a couple days late on any credit card payment or anything, so YMMV.

Canelek · Post by **Canelek** » April 1, 2009, 11:20 am

From what I have heard, it is best to not use more than 30% of your available credit. So, if you have a card with a 10K limit, try to keep it under 3k used at any one time.

Aabidano · Post by **Aabidano** » August 10, 2009, 9:29 am

On this same topic, I had a different company calling endlessly for someone else. I ended up filing a complaint a complaint with the PA Attorney General, the response from the company was:

"This person's number must have been removed as we cannot find it on our system. If this happens again, please have the contact us directly"

They haven't called since, and never responded in writing as I wasn't the person they were looking for. After sending them a registered letter to cease and desist they called "by mistake" from a new number, which prompted the complaint filing.

I've got a good paper trail at this point, I'm almost hoping they call again so I can sue the bottom feeders for harassment.

Aslanna · Post by **Aslanna** » August 10, 2009, 12:12 pm

I have had people calling for someone that's not me since January or so. I never answer the phone anyway (yay answering machine) so it's not a big deal. I'm basically doing it as an experiment to see how long before they give up. One guy sounds like he's about to commit suicide. It's awesome. Come to think of it I haven't heard from him in a couple weeks.

Siji · Post by **Siji** » August 11, 2009, 11:46 pm

So I've had pretty good credit for awhile now, mid to high 700's before I bought my house and paid off most of my credit cards and such with a 401k loan, car paid off, etc. I've also been a Bank of America customer since before it was NationsBank (e.g. long time). I've got 2 mortgages, 2 credit cards, checking & savings account with them.. never EVER made a single late payment (not even by a day), didn't have my credit cards maxed, etc. I'm a dependable loyal customer.

So awhile ago I noticed that my 'main' credit card interest rate tripled out of the blue. It went from a 7.9% to over 21%. So I called them up and questioned it. After about 45 minutes on the phone and jumping around from one person to the next, they basically told me that they didn't like me having the balance I had and that they'd return it to 7.9% as long as I didn't use the card. So whatever.. a long time goes by (9 months?) and one day I get an alert that a charge happened on that card. Turns out I missed an auto-renew for domain name service. It was just over $7 and I immediately called and had it credited/refunded the next day. Sure enough, check the next statement and it's back up to over 21%. So I call them, explain the situation and they agree to lower it back down with the same conditions. I agree. Then I make a big mistake. (Here's your lesson coming up!)

I ask them why it is like it is, explaining my history with the bank, my good credit, etc. They transfer me to someone who takes some basic info (salary, job type, etc). I wait a bit.. they come back and.. not only does he say he can't allow me to use this card anymore but he also says that they're going to have to lower my credit limits on both credit cards I have with them. So presto both my credit card limits are lowered to their current balances. Fuckyouverymuch and have a nice day.

So on the somewhat minor side of things, I now have no 'emergency' funds as I'd closed all other credit cards to keep these two. And with these two I'd kept them both under 50% of their limits. One of them I normally paid in full each month, but being that I'd just had a baby there was a bit more of a balance than usual so I wasn't paying it off - but I was paying more than the minimum payments on both by far.

What's the big deal? Well, now on my credit report I go from having 50% or less balances on my two credit cards to having two MAXED out credit cards. So that shiny credit report that I had is fucked. I can't get approved for any other credit cards now to replace these because of it. Also more and more companies are using your credit report as a criteria for considering you for employment. There was a huge article in our paper Sunday about this. It's absolutely asinine. You lose your job, can't find work so can't pay your bills so your credit score bombs. Then you can't get a new job because your credit is bad because you're unable to find work.. what the fuck?

So today's lesson is not to question anything about your financial shit with banks unless you absolutely have to. And whatever you do, don't ask anything that makes them look at your accounts or credit.

Aslanna · Post by **Aslanna** » August 12, 2009, 1:32 am

Have you tried calling and getting someone else? It sounds like that person was a jerk. Either that or go into an actual branch and talk with a manager there and see if they can help. You could switch banks but I think I'd try contacting them again. Sitting on hold for 45 minutes while web browsing is a lot easier than the hassle of setting up everything at a new bank. But that's just me. I wouldn't let that aggression stand!

Aardor · Post by **Aardor** » August 12, 2009, 7:30 am

Random article I was reading today about your credit report preventing you from getting a job: http://www.networkworld.com/community/node/44303

Aabidano · Post by **Aabidano** » August 12, 2009, 9:36 am

That blows Siji, I'd make an appointment to go sit down and discuss it with a branch manager, with the "I really don't want to take all my business elsewhere, but.." talk. They're risking some serious revenue if you've mortgages with them. You should be able to get things straightened out. At which point I'd look into quietly and quickly moving everything out of BoA. BoA sucks the big wazoo, even more so than your average bank.

Everything but my mortgage is with a local credit union (Grow FCU).

I've been accustomed to credit\background screening for a long time given what I do, though it doesn't surprise me it's moving into other areas. In theory it's a good idea, in reality not so much for people who aren't dealing directly with security\finance.

The whole credit rating system is a scam, but that's another rant.