Jan
27
Will paying off bad debt that is over seven yrs old and no longer on a credit reports make it show up now?
Filed Under Credit
Enigma M asked:
I have been pre-approved for a mortgage at this point. Neither of the previously mentioned debts are on my current credit reports with the three reporting companies. Both collection agencies swear neither account will show up as current since the accounts are more than sevens yrs old. If I pay, just how much of a hit will my score take? Both debts combinded are less than a 1000.
JULIO
I have been pre-approved for a mortgage at this point. Neither of the previously mentioned debts are on my current credit reports with the three reporting companies. Both collection agencies swear neither account will show up as current since the accounts are more than sevens yrs old. If I pay, just how much of a hit will my score take? Both debts combinded are less than a 1000.
JULIO
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4 Responses to “Will paying off bad debt that is over seven yrs old and no longer on a credit reports make it show up now?”
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if they are not showing now they will when you pay them off. the accounts have been inactive for more than seven years and will not show. however if you pay them you made the accounts active again and will show up. they will show that they have been paid, but it will also show that they were delinquent till they were paid off. i learned first hand on that one.
Yes, it will reflect upon payment the account was activated again for payment purposes, even though it would show as paid off, the score would drop do to the charged off credit.
Technically, your actions were mixed up! First you should have checked out all of your credit reports to see if the account had been removed. If it wasn’t, you could have disputed the charge so that the credit bureaus could remove them from your file. But once the company has been contacted in any form after the 7th year, the account was considered active again.
Lordy I wish people would research their answers before speaking up!
Please refer to the Fair Credit Reporting Act Section 605(a)(c), which clearly states that the reporting period for debts is 7 years, beginning on the date of the delinquency! It has NOTHING to do with last activity. Therefore, if you paid this debt, it does NOT get inserted back into your credit report.
Now my question is why are you paying these bills? Are you aware that debts that are past the Statute of Limitation are no longer legally collectible? You no longer have a legal obligation to pay them.
And NEVER NEVER NEVER believe what a collection agent tells you. In this case it may sound like they are you buddy by not reinserting them…but they conveniently neglect to tell you that the SOL laws can be reinstated simply by contacting them and offering a payment, or by actually making a small payment. The SOL Clock starts back up and they can hound you for several more years. They are NOT looking out for your interest!
So my advice is to look at the link below and see what the SOL for your state is. If these debts are old enough, ignore them. Send the collection agent a cease and desist letter and be done with them!