OK guys, I need your opinion on this one. The only negative I have on my reports is a collection acct for an electric company from 1996. I was not aware of this until Jan. this year. I left my ex in early '96 and obviously he didn't pay the bill or change the name on the acct until they probabably threatened to shut it off or did shut it off 3 months later. Its only $181 which is probabaly 3 months service. I just pulled out my divorce papers and there is a clause in there that states "husband agrees to indemnify and hold wife harmless for any monies owed relating to the said marital home." What does this mean, and do I have any recourse using this clause to dispute this bill? It has come back verified with TU and Equifax. I have never acknowledged this bill as I didn't know it existed until this year. What do you all think?
to me it sounds like you may have a claim against your husbannd, but not the utility company. If the collection is only $181 then it might be easiest without the heartache of going to court, etc. just to pay it, however, if they have accrued interest it may be a different story.
Well as it stands, as far as I know, they have never tried to collect from me. I thought about calling them to settle but there are only 2 years left to the 7 year mark. I don't want the clock to start all over again and have it reported as a paid collection for another 7. I did try to have the acct switched when I left, but he had to call and didn't. They wouldn't just shut it off either because it was winter and they don't do that around here if someone is living in the home. He obviously waited until there was a shut off before he opened a new acct. and stuck me with the past due bill.
I keep getting different information, but I've heard on this board and been told by others, that if you pay a past due bill, your 7 years don't start over. That's the way it used to be. What I've been told is that it's 7 years from the DATE OF LAST DELINQUENCY or the date it went into collection. So even if you pay, it doesn't start over. Now if I'm wrong, someone PLEASE correct me. But for once and for all, I'd like someone to explain the 7 year thing is layman's terms and give examples as to how it works.
my TU says the acct was opened 11/96 and closed 5/96. Status of 5/96 collection acct. That doesn't make any sense right there. Equifax is Date of last activity 5/96, but are reporting Status of 6/97 05. Thats well over the date of last activity. Also reporting 5 times 90 days late. Both verification dates (and I disputed this as not mine in Jan) were 8/99. I don't believe they verified at all.
my ex and I had the same claus. However, when the cable bill came and they threatened to put it on my credit report, they said even a divorce decree wouldn't exonerate me. I made arrangements and paid the damn thing because I didn't want to deal with another judgment on my report. In exchange, they removed it because they were so desperate for payment.
Jamie, this is an easy one I'm going to post the answer to this as a new one: "Never deal w/collection agency again" so everyone sees it. This is such an easy fix, you'll laugh. I had the same problem and it only took 3 letters to get it fixed after 4 years of trying... once I had the right letters! By the way, you're right not to pay or negotiate it. it will start the clock again. The law is 7 years from the last date of activity (meaning payment) or from the first delinquency (which is because you go delinquent after your last payment normally) unless you keep throwing odd payments at them. Collecion agencies have no right to collect from you or to restart the clock when they get the account, but they do. It's called blackmail. they ruin your credit so you'll pay them. simple, eh. Check out the new post! It'll save you. It did me.
