I know this topic is frequently discussed, but I wanted to get some feedback on my particular situation. I recently noted on my Experian CR that a collection account popped up. This account is apparently from a video rental establishment that I last used in 1999, maybe 2000. Of course, the CR is showing "date listed for collection" as Jan 2006. I don't necessarily dispute that the account is mine, and i am willing to pay it. I'm more concerned that the negative is going to hang out on my CR for much longer than it should. I believe the SOL in WI where I live now is 7 years. Any advice on my next move?
Under FCRA, the CA is required to provide the original date of delinquency to the CRA within 90 days of posting the account. If you don't see it there, call the CRA and ask when it will drop off. Is the account balance even legitimate? Some video rentals (Blockbuster comes to mind) have on file your credit card number, and if you are late, or don't return, a month or so later they just charge your card. If your card is still active, no collection account due would even occur since the amount would have been paid. Note: Blockbuster also settled a class action suit around late fee charges: http://promomagazine.com/news/blockbuster_coupons_090105/index.html There might be other reasons an account like this was not legitimate. If some store goes under, their accounting might not be accurate (maybe there is a connection there), and anything labeled "receivables" is just sold off as the business's assets are liquidated. There are companies that will buy this cheap "debt", and bill all account holders, who then have to determine years later what amounts are even due on an old account for a company now out of business. The "assets" of CAMCO were sold off when they were shut down, even though they were shut down for collecting, and attempting to collect, a lot of "debts" from people who did not owe it. There is a reason for SOL. There may be a reason no one attempted to collect on this earlier. Old debt, and those who attempt to collect on it, should be viewed with suspicion.
You should not have to guess at when this alleged debt was incurred. The CA should be reporting it to the CRA. Be aware that depending on state law, moving to a state with a longer SOL might not necessarily extend the original SOL if it had already expired before the move. Where did you live at the time the "debt" was incurred?
I lived in Illinois at the time of the original delinquency. I figured out that this had to be no later than 1999, and as of today it is still being reported on my CR at "Date opened: Jan 2006." That date is obviously the date that this FFCC got it. So what is my next step here? I'm assuming that I should send them a request of validation letter. Any samples of that around to help me out? It's just so darn frustrating when I've been working like crazy to clean up my credit over the last 20 months, and the score is just getting up to a range where I'm feeling good, and then they drop something on there from 6-7 years ago. A-holes. Sorry for my rant, but i'm sure you understand. Thanks in advance.
