Question

A 7 year old debt should I pay it or wait a few months?

It will be 7 years old THIS DECEMBER, it's only 6 1/2 years right now. It's about $1,300 and when I called them to try and settle they said they could only go to about $750. Come on! It's 7 years old, they paid pennies for it. Should I offer them a couple hundred and say take it or leave it? Or should I just wait until this December and say "you get notta"! Need advice, thanks in advance! Btw, I need by debt clear within the next month (But I don't want them to know that) I want them to think I have a lifetime!

7 years ago - 6 answers

Best Answer

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First - the reporting time limit is not 7 years + 180 days.
For credit cards it is 7 years from the first a person becomes 30 days late and never brought the account current leading to the charge off. For bank loans it is 7 years from the last payment before the default.

The 180 days is only "allowed" by the FTC to the CRA's for possible data furnisher error of the true obsolescence date.
The FTC requires the CRA's to report for 7 years from the true obsolescence date - not 7 years + 180 days from that date. <source - FCRA FTC Staff Opinion Letters>


To the OP, I've looked through the states collecting SOL list (the link listed in my profile) and I do not see a state that lists a 7 year SOL for either an open or a written account.

credit cards would be considered open accounts
bank loans would be considered written accounts
utilities - phone land and wireless, electric, etc. "generally" fall under the UCC with a 4 year SOL
repo's void the original contract and fall under the UCC with a 4 year SOL

As far as paying or not, and how much, really depends on what you feel you need to do.
If you "have" to have it gone within the next month, you do have to factor in that (after demanding removal upon payment) you will have to wait on them to delete.

One other thing, when you send anything to the collection agencies, never sign your name. Type your name in or print your initials. Send everything certified mail return receipt.


(going a little off topic for this question - just an FYI)
I noticed in one of your other questions that you said you needed your score to go up to a certain figure. If you know someone, spouse, family member or friend that has credit card(s) that are in good standing - no lates, low utilization, etc. Ask them to put you on as an authorized user.

If your spouse adds you, by law, the creditors and the CRA's HAVE to report the account(s). If a family member or friend adds you, the creditor doesn't "have" to report though many do. And while you are being added, request that they report. You can also ask how long it will take to start reporting.

It's a good idea to be added as an AU to more than one account, and with different creditors, in the chance one creditor doesn't report (if it is a family member or friend) or if a creditor is slow to start reporting

Being added as an AU, when the CRA starts reporting, you will get the FULL history of the account(s). And, if the account(s) is/are in good standing and have some age (brand new accounts won't help) - your scores should rise "past" the mark you had mentioned in the other question - even with your current baddies reporting.

7 years ago

Other Answers

You owe the debt, don't you? The fact that the debt is 7 years old doesn't make it a non-debt.

by Retired bookworm - 7 years ago

All private debts are exacted in 7 years. As long as you paid nothing at all towards them in that seven years. If you paid on any of them during the said seven years, at the point of payment on any debt, the seven years starts over when you stop paying again. Federal debts such as child support or Irs or Student loans NEVER GET EXACTED.

by AnnMarie - 7 years ago

Keep in mind that they have certain programs that they can offer you and they have guidlines as far as what they can and cannot accept. They (as a collector) get paid when they get money from you. So if you are 6 1/2 years in debt they are probably telling you the truth as far as 750 is the lowest they can take. At this point they will get ANYTHING they can, unfortuneately their anything is different than what you are willing to pay. I would just wait, have it cleared from your credit report and start over. Best of luck to you.

Source(s)

by Robbyz3 - 7 years ago

You should be aware that even if a debt falls off your credit report, you are still liable for the amount that is owed. The collection agency is within its legal rights to attempt to collect the money.
As far as the date is concerned, according to the Fair Credit Reporting Act, it's actually 7 years PLUS 180 days after the first report of delinquency. So, your seven years in December is fine...but your 180 days means that it will not fall off until next June. Sorry for the bad news!
If you have the money to pay, you should pay. As I stated before, just b/c it will fall off your report, you are still liable. Keep trying to offer a settlement...I totally agree with you - it's SO old, they should take what you offer. Of course, they sometimes like to play hardball.
Good luck!

Source(s)

by YSIC - 7 years ago

If you feel honor bound to pay it, then do so. If you are only interested in your credit. You are better off to let it ride. When a collection is reported it only makes a negative impact on credit for the first 90 days after submission. Any new activity (payment) would then make another ding to your credit.

Isn't that messed up? I work with credit every day.

Good luck

by Cynthia L - 7 years ago