Old debt resurfaces while mortage is pending! We are trying to close escrow on our new house. We signed the contract in Aug and will close in March when the house is built. Yesterday I received a collection notice for a old credit card balance. I had this card when I was 19 years old. (I'm 32 now) I haven't seen this on my credit report in at least 6 years. Last activity was probably in 1991. The collection amount is 14K, on an original balance of $1500.00! What should I do? Can this endanger closing on my house?
That debt is WAAAAAAAAAAAAAY past the SOL. You need to send a certified letter to the collection agency that they are attempting to collect on a debt that is FAR past the SOL. Also be sure to mention that you dispute the debt and were not notified before it was placed on your credit reports.
Hi TF80, It best not be back on your report, but you didn't say. Or, is it on the extended report that they pull for transactions that exceed $150,000. ?
For transactions of a certain size, or job involving $75,000 or more they will get a more detailed report. Indeed this CC debt may very well be on there. § 605. Requirements relating to information contained in consumer reports [15 U.S.C. § 1681c] (b) Exempted cases. The provisions of subsection (a) of this section are not applicable in the case of any consumer credit report to be used in connection with (1) a credit transaction involving, or which may reasonably be expected to involve, a principal amount of $150,000 or more; (2) the underwriting of life insurance involving, or which may reasonably be expected to involve, a face amount of $150,000 or more; or (3) the employment of any individual at an annual salary which equals, or which may reasonably be expected to equal $75,000, or more.
YES you need to respond. If you don't they harass you forever. Send them a C&D letter immediately outlining that it is way past the SOL. Gib
If indeed it DID show on a report in connection with the mortgage, one way around this would be to obtain a first and second mortgage. Of course this would only work on a house with a value of less than 300k. Gib
does this mean I'm screwed then? All of this stuff I am cleaning up now...is it pointless in the end?
Not at all. If you get outright deletions, they will not show on even an extended report. The only things that will show should be unsettled accounts that "fall off" your report. Butch brings up a very good reason why you should fight for deletions even if the accounts are old. Gib
The mortgage company ran the extended report (which is a compination of 4 bureaus) when we applied. It was not on that report.
That wasn't an extended report, but a merged report. If it wasn't on that you really don't have to worry about it. Send these clowns a C&D letter. They are on a fishing expedition to try and collect anything they can on an uncollectable debt. Gib
Gotta ba CAMCO - they bought old Citibank accounts. Why Chat has the perfect letter on his site. It threatens them, as well as C&D and SOL info. Don't worry, send that letter and they will go away. Do it quick - they are filing against people for these old debts!!!
Regarding this "Extended Report" -- I just finished with my mortgage last August and the transaction was way more than the limit where this would have kicked in. I saw the reports the lender pulled and there was nothing on them that wasn't on the ones I see. So while I think they may have the RIGHT to pull a longer history I don't think they always do so.
