I think that I may have made a mistake with my credit. I was offered a credit card with the money store with an $800 credit limit, but I had to do a balance transfer on an other account they had bought. That account would have fallen off my credit report next year, but since I started paying The Credit Store on this account is it now going to be 7 more years?
Clock re-sets on old debts This is a gray area, and perhaps Carreon & Associates will weigh in. Here's what I *think* I have concluded by reading a lot of stuff on this....but I may be wrong: Simply paying off a bad debt does not re-start the clock. Period. I think that everyone is in agreement on that. The uncertainty is that if you (a) make a payment on an old debt, or (b) even agree or promise to make a payment, or (c) do a transfer as you indicate ....then a case will be made that you have RE-ENTERED (explicitly or implicitly) into a *new* agreement or a *re-negotiated* agreement. It follows that the 7-year clock would be re-set. I've read someplace that this is a disputatious area that is kind of up to a judge or arbitrator if it gets that far. As far as the CRA's go, my info is that they will generally just go with the creditor if you dispute such a thing. I've been seeing for the last couple of years this thing of a visa or m/c offer that will open an account for you, but it is contingent upon your transferring your old bad debt that the issuer bought onto the new card. IF you had a $2,000 old debt and you did this, BAM!...you've got a new high interest visa or m/c with an automatic $2,000 balance. It's just another way for them to collect. As your situation suggests, it may also even put another clock on that old debt. I believe this is right, but I hope that some other knowledgeable person has some insight to this.
I Hate to tell you this but... I really hate to be the Town Cryer but what you did was fall into the oldest collection tool in the book. The "Money Store" Often purchases old debts and then sends you a tricky little letter that says you have been approved credit but to get it you must pay of xx debt. What they did in their sneaky little way was get a brand new loan with a brand new promise to pay ensuring their investment on the old debt. This trick is used to get consumers to pay old debts and thus avoid the statute of limitations. Look on the back of the letter you got. Does it say anywhere that this is an attempt to collect a debt? I cannot tell you how many letters I get per week from people who got the same letter. It is the worst and should be a major violation of fair practices. Karen wrote: ------------------------------- I think that I may have made a mistake with my credit. I was offered a credit card with the money store with an $800 credit limit, but I had to do a balance transfer on an other account they had bought. That account would have fallen off my credit report next year, but since I started paying The Credit Store on this account is it now going to be 7 more years?
RE: I Hate to tell you this bu I have a similar situation with the Credit Store, but it was a debt I owed to BoA Mastercard. I wanted a way to get it paid off, and they wrote off 50% of the debt and put the rest on a First National Bank MC. The original debt has been paid off and I pay the balance in full each month. The advantage to me, besides having the old debt off my report, is they report my good payment history to all 3 bureaus - I know this because I pull all 3 every 6 months.
RE: I Hate to tell you this bu I knew it was to pay off a debt and I didn't argue because I did owe the money. My question was if the seven year clock started over when I did it.
RE: I Hate to tell you this bu The old debt is now paid off correct? So now you have a new debt with new terms and No, paying off the old debt did not restart the clock. The debt should still only report for 7 years from original charge off not last activity (payment). Karen wrote: ------------------------------- I knew it was to pay off a debt and I didn't argue because I did owe the money. My question was if the seven year clock started over when I did it.
