I've had bad credit from 2000-2000 bad times. Things are turning around and I'm close to launching a new business. In anticipation of this, I pulled my credit-report, and each month started making payments (small, good faith ones) on one or more. I anticipated (correctly) that a friend would lend me money to pay these off in full (based on my new situation) and was trying to simply keep good faith and then pay them all off in full. Creditors were of course really 'nice' given I guess that they all had given up on the accounts (some past SOL, etc.) but I did things like give them my new contact #, credit-card (and/or bank #), etc. Now as I found out that I am pretty much trashing my credit totally, I decided to go the Credit-Repair route. I'm not opposed to paying valid debts off of course, just don't want to end up with NO credit because of it. Has contacting them, making payments, updating #s, etc. destroyed any chance to dispute/remove any of these despite their age? Also curious if it is the Open or the Reported Date that determines the Statute of Limitation? It seems the report date is simply the last time they updated it, but the Open Date seems off. This is especially true with Collection Agencies, where their Open Date can be (e.g.) 2005 when the original creditor's Open Date is 1998.
Payments will not legally change the time these items can remain on your report. You said your bad credit was from 2000? They should be falling off. No. SOL is determined be delinquency dates. However, in some states, paying might restart the SOL. Yes. The Open Date is another non-important date. The Date Open is just that, the date the furnisher opened the account. It will vary between an OC and a CA.
Be aware of the business apsect.. Just to note, my suggestions below are respective to your new business venture. First, it is admirable that you wish to pay your debts and "make good". This is an excellent sign of your character. However, strictly from a business advisement position, since you will be starting your own business, remember "Cash is King". This means you should have as much cash saved as you can, and try to hold onto every penny you can. One of the top reasons for business start up failures is undercapitalization, (I know, been there!). So, though it is admirable for you to pay these off, I suggest you look through the data for the debts, and examine if you MUST pay them off, and what are the possible consequences of not paying them. Per your posted info, these items should either be off your credit reports completely, or ready to fall off in weeks/month(s). If these all occurred in 2000, then they should be off your credit reports. So, you should be clear there. The other aspect is that these debts should be past the SOL for legal collection actions. Yes, you could be sued,and YOU would have to raise defense of past SOL, but you are in the "legal clear" for collection actions. So, back to paying; the potential risk here is your future credit report status, and legal collection exposure. If you start making payments on these old debts, you will most likely be "resetting" the legal SOL for collection. You also are (in essence) creating a new agreement that if you do not keep payments timely on, could result in legal collection activity, and perhaps new reporting to your credit reports. Bottom line advice: this is your decision to make (re: paying old debts), just make sure you have looked at all the requirements and possible consequences. You do not want to find yourself in a position where you must decide between paying a collection agency, or perhaps an employee or supplier to your business. Believe me, it can happen. Look at this from a business perspective, as well as a personal one, and make what you feel is the best choice. Just be sure you are 100% positive you can live up to whichever choice you make.
The cash-flow aspect definitley has entered into the equation Basically I've been trying to build on zero to no capital (developing site) and have come to the same conclusion (no cash = little chance of success) so is the precise reason I am now seeking Venture Capital. I'm a little miffed at myself that in trying to do the right thing (make payments) I might have re-set SOL and put myself in a no-win situation; can't get items removed/fall-off due to SOL, payments only reduce my credit-score. I just sort of saw this as the final step to rebuilding my past/future. I'm hoping one of the better Credit Repair agencies (so far I'm liking Apex who posts here) can help undo any damage I've done. As I've stated, if need be I can pay it all off, but if the net results is less money to operate a new business, worse credit so I can't even get loans, etc, then there is little upside for me. I'm hoping some of the Pay for Delete or Pay for no Dipsute methods will work, given the age of the detbs and hopefully in most cases the SOL won't have been re-set. Barring that perhaps disputes will work since I'd imagine most creditors (Capital One etc, HSBC) won't have records from 1998-2000. Other then those I have a couple of Pac Bell/Ca Wireless accounts from say 2001 and as far as I know the SOL on those is 4 years. Thanks for the support!
As Bizwiz said, you're probably past the SOL for collecting for these debts, so there's really no reason to pay them. Let them sue you, and then raise the SOL defense. By bet is that they don't sue.
OK, well first off, you are confusing SOL with time limits for reporting. Time limits to report on your credit report are 7 years from the date you first became delinquent, and never caught up. Charge offs can never be caught up. Then there is the SOL. That varies from state to state, and is the period of time they have to sue you (and win) in court for collection of a debt. While maybe you did restart the SOL, nothing you have done will legally allow these to remain on your report for more than 7 years. When did you default on these accounts?
