Here is the question. Say you had a credit card in 1991 and the date of last activity was 4/1996. This account is showing up on your CR as Closed per consumer paid as agreed. It is a positive TL. Now you know that this account went to collections and don't know how it is actually appearing as a positive TL. Never the less. Now it being just over the 7 year mark, you apply for a credit card with the same company again. If approved could they charge the new card for the balance of the prior card with them or would you have to pay it off to get approved even if it is well past the reporting time let alone the SOL. I guess my other question is. Is there anyway that this old account could potentially haunt me in the future? Or I my be blacklisted. I don't know yet. By the way... The company I am talking about starts with the letter C has IT in the middle and ends in I.
To give you some quick answers - no, they cannot re-age the account so that it will show up on your CRA if the derog infor is over 7 years old. That would be a FCRA violation and you can and should sue them and collect your $1000 statutory damages if they do. The 4/1996 date of last activity is over 7 years ago, so they cannot post the derog without re-aging. No, they cannot charge the new account for any percieved balance on the old one without your permission. They can make paying off the old one a precondition of getting the new one and give you the option of taking an advance against the new one for that purpose. If they do, just tell 'em to stick the new card where the sun don't shine and get a card from another bank. If you can get a Citibank card your FICO will allow you get just about any card. Also, keep in mind that any balance due on the old card is probably outside the Statute of Limitations, so they probably cound't even successfully sue you for it.
IMHO you are probably blacklisted from their system. However, if they fail to blacklist you, unless they send you an interestingly worded application which basically merges the new card with your existing account they will not be able to hold you responsible for your previous citibank account. But honestly, is it really worth the hassle? I don't intend to apply for any cards from any of the ones that I have charged off, don't want to open that can of worms. Just because they can no longer report it, doesn't mean that they won't sick yet another collection agency on you. The CA can't report it, but they still can harass you a little. Hope I could be of help. ChrisB
Chris - you're missing out on an opportunity here Let them send a new CA after you. Most CA's at one time or another violate FDCPA and when they do, zing 'em for $1000. I'll be reapplying to ALL my ex-creditors just HOPING they do tha. I don't want their cards, just their checks.
