I have been reading allot about how people are claiming that if you start paying on an old debt it will restart the clock and stay on your report longer. I have to say I disagree with this statement and find it misleading to someone trying to settle an account. First off, I am no expert and not a lawyer so this is all IMO... http://www.ftc.gov/bcp/conline/pubs/credit/fcra.htm Here are the basic rules: Seven years. There are certain exceptions: Information about criminal convictions may be reported without any time limitation. Bankruptcy information may be reported for 10 years. Information reported in response to an application for a job with a salary of more than $75,000 has no time limit. Information reported because of an application for more than $150,000 worth of credit or life insurance has no time limit. Information about a lawsuit or an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer. (c) Running of reporting period. From- http://www.ftc.gov/os/statutes/fcra.htm#605 (1) In general. The 7-year period referred to in paragraphs (4) and (6)(2) of subsection (a) shall begin, with respect to any delinquent account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and loss, or similar action. I think we are getting this confused withe SOL for collecting the debt. No where does it say this is from the DOLA. IMHO if you make payment on an old account it still CANNOT stay on report past the date of 7 years. However in most States if you make a payment, then the SOL for collecting the debt is restarted. Since the SOL for collecting a debt has been agreed this is from the DOLA. It would be illegal for any negative item to remain on your report past 7 years. (with the exception of the above exclusions) I would love for some opinions on this matter, I just don't want to scare everyone into thinking if they make a payment it will remain on their report longer... All input welcome
In most states, a payment DOES NOT restart the SOL. You would need a new written agreement. Here's an explanation from a collection lawyer regarding Ca. law. http://www.mpbf.com/meeart6.htm
I agree. The word MOST should be SOME. Usualy the CA is smart enough ( is that an oxy moron?) to get you to sign or agree to a new contract. This board is an excelent way to inform consumers about their rights... Keep up the good work.
Even if they don't get you to sign, they'll try to reage it. They hope we don't know that it's illegal. There is a case where you can restart the 7-year clock. If you have an account that is past due, and you bring it current, then go past due again, you'll restart the clock. The seven years is based on the date it became delinquent and NEVER AGAIN BECAME CURRENT. Paying a settlement is not making it current, but if it's an open account and you pay it, then go late again you'll start all over.
