And it IS validation...from the original creditor (it was never sent to collections). The CRA is reporting an incorrect balance according the the creditor's final statement. This is due to age off my credit report in about 11 months, but I'm thinking about paying it anyway. If I do this...will it start the 7 years over again? I should know this, but since I don't....can someone please answer it? Thanks! L
YES it will. DO NOT simply pay this off. A PAID C/O is just as damaging to your FICO as an UNPAID C/O and the 7 years will begin again from the payment date. If you do want to pay it off contact the original creditor and offer to pay the balance off for a letter correcting the listing to PAID NEVER LATE...or DELETED. I would hope to think that the original creditor, 6+ years past due debt would love to close the account and would agree to an offer like that if you made it. -Peace, Dave
I did that. Called them right after I read their letter and looked over my signed application, credit agreement AND statement showing the balance owed...lol. The lady in charge there said when I sent the letter offering to pay in exchange for deletion, she contacted Equifax to see if she could do that. Get this...EQuiSUX told her she was not allowed to delete the account. The only thing she was authorized to do was to show the account as paid. I would really like to pay these people...I do really owe it...but I am not going to start over with seven years over $163.87!!!! Does anyone have any suggestions as to how to get around this? I tried explaining to the nice lady that it was not up to Equifax...that the law says the maximum it can be reported is seven years, but there is NO MINIMUM time it can be reported. She said she didn't know anything about that sort of thing, but she had to do what EQ told her she could. L
I have to disagree. Paying the charge-off will not restart the reporting (7 years). It would restart the Statute of Limitations which is something different - that is how long the creditor can sue you and the time limit varies by state. But the item will still fall off your report in 7 years, whether you pay it or not.
Thanks, Donna...I was thinking it wouldn't restart the clock, because they use the date of delinquency...not the date of last activity...BUT its still something I am confused over. Before I call this nice lady back and pay this...can someone please tell me for certain, and also give me FCRA quotes, caselaw or something to back it up? Pretty please? Thanks so much! L
I understand where you would disagree. We have seen and debated this topic over and over and I believe (interpreting the laws) you are correct, the date of original default is the date that SHOULD be used...however in real life the most common occurrence (no data, simply as seen from history on this board) is that the listing will get updated (and re-aged) forcing you to have to dispute the entry in order to achieve the correct outcome. While this should and may eventually work, it often does not and even if it does, it takes a while and a heap of aggravation. Getting the creditor to update the listing as a settlement offer for paying off the aged debt is far easier and if you get them to settle for PAID NEVER LATE update may even be more beneficial. Whyspers, try again to contact them and make the offer. Offer to send them a letter to sign that you write, thus they do not even have to contact the CRA, you will with the letter. Persistence is key and time is ticking...they only have a few months that you will make this offer otherwise they will get nothing and the item will drop off soon enough. -Peace, Dave
You know what is really sad about this whole thing? That the people in charge of credit reporting and collections, etc. don't understand the basic principles of credit. I don't think they understand the laws so they are not willing to help a consumer, when the consumer wants to do the right thing. Since they are unsure about the laws concerning reaging, deletion, etc. they do what their vendor tells them to do (the CRAs). What a consumer and creditor/collection agency decide to work out between themselves should have nothing to do with the CRAs or with what they feel is right. The whole system needs to be revised. Dani
I agree with you Dave that negotiating for "Paid as Agreed" would definitely be the way to go. I just wanted to make it clear for anyone who is reading and not familiar with laws. Of course, the CRA's make up their own laws but that's another story. =)
Whyspers: It's admirable that you want to do the right thing, however I have to wonder why bother now that the account is about to fall off. Over the long run it won't be of much benefit to you, however it could be very harmful if the CRA decides to play by their own rules which they often do. If you ask me it's just not worth the trouble at this point. Leave it alone and let it drop off in 11 months. Like I said it's not going to be that beneficial to you anyway even if it says paid as agreed never late because it's such a low balance.
Thanks, guys! I'm not so admirable, Robin, or I would have paid this way back when I *knew* what I owed and why...but thank you for saying that and making me feel less like a second class citizen. Not quite sure why I didn't...but that's in the past. I am not going to take a chance on having the account reaged. I know there is no way this company will change its mind. Its located in a small town in eastern Kentucky and you can definately apply the "least sophisticated person" standard to the majority of businesses and people there. Equisux spoke and that's that. They truly believe they aren't allowed to delete it. Its too bad, really. L
