Charge-Off, Credit Report & Statute of Limitations

How long will a charge-off appear on my credit report?

If I have a charge off on my credit report, will that affect my credit rating? How long will it stay on my credit report if I don't pay it off or file bankruptcy?

Read full question
Bill's Answer
4.5
/5.0
(7 Votes)
Bills.com Team
Pro

By

Highlights


  • A derogatory entry on a credit report can appear for 7 1/2 years.
  • The rules for credit reports have no relationship to a state's statute of limitations.
  • A debt older than the statute of limitations can still be collected privately.

Before I explore the issues raised in your question, we need to establish a few definitions and concepts.

Charge Off

“Charge-off” is an accounting term used by creditors when they move a delinquent account from its accounts receivable books to its bad debt ledger. This usually occurs between 180 and 240 days from the date of your last payment. The fact that an account is charged-off does not mean the debt may not be collected later, or is canceled or forgiven. The charge-off date also does not correspond to the statute of limitations on collecting a debt, or the date that an entry on a credit record must be removed. All three dates or deadlines are independent of each other and have different meanings.

Because an account is charged off does not mean the creditor lacks a legal right to collect the debt. To the contrary, the creditor may move the account to its own internal collections department, or sell the debt to a third-party collection agency. See the Bills.com resource Charge Off for a more complete discussion of this oft-misunderstood phrase.

At some point, and it varies by your state of residence, a debt becomes so old that your state's laws may provide relief. This is where your state’s statute of limitations comes in.

Quick Tip

Get a no-cost, no obligation analysis of your debt options from a pre-screened debt relief provider.

Statute of Limitations

All states have a body of statutes in their codes of law called, “Limitations of Actions,” commonly referred to as the statutes of limitations. The idea behind these laws is that we as a society have decided that we don’t want old debts hanging around forever — we want people and businesses to be able to move on with their lives without worrying about being sued.

The length of time a creditor has to sue you depends on your state of residence and the type of debt. For example, many states allow longer for creditors to file suit to collect on closed-ended consumer loans than on credit card debts. Most states give credit card issuers three to four years to file suit after default, but some states allow as many as 10 years. See the Bills.com resource Statute of Limitations to learn more about this sometimes tricky part of civil law.

To see your state's statute of limitations, read the Bills.com Collection Laws and Statute of Limitations page. If a creditor files a lawsuit after the allowed time, the court will usually throw the case out and not allow the creditor to file suit again (called dismissed with prejudice).

However, you must raise the issue of expired statute of limitations in a written response to the lawsuit, or else the court will not know that the statute of limitations has expired. Although the periods vary from state to state, I believe that there is only one (Ohio) that is longer than 10 years.

Remember: The passing of the SOL does not mean that a creditor cannot sue you. It means if a lawsuit is filed you should have an absolute defense against the lawsuit if you raise the defense. Also, keep in mind that the passage of the SOL does not prevent a creditor from calling you to collect on the debt; it simply provides you an absolute defense in court if the creditor files suit.

Credit Report Rules

Federal law (US Code Title 15, §1681c) controls the behavior of credit reporting agencies (CRAs). The specific law is called the Fair Credit Reporting Act (FCRA). Under FCRA §605 (a) and (b), an account in collection will appear on a consumer’s credit report for up to 7½ years. To determine when an account will be removed by the CRAs (TransUnion, Equifax, and Experian and others), add 7 years to the date of first delinquency. The date of first delinquency is shown in credit reports. Subsequent activity, such as resolving the debt or one debt collector selling the debt to another collector, is irrelevant to the 7-year rule.

Some debts have a reporting period longer than 7 years, including:

  • Tax liens: 10 years if unpaid, or 7 years from the payment date
  • Bankruptcy: 10 years from the date of filing (15 U.S.C. §1681c)
  • Perkins student loans: Until paid in full (20 U.S.C. §1087cc(c)(3))
  • Direct and FFEL loans: 7 years from default or rehabilitation date (20 U.S.C. §1080a(f)(1) and 20 U.S.C. §1087e(a)(1))
  • Judgments: 7 years or the debtor’s state statute of limitations on judgments, whichever is longer

The FCRA 7-year rule is separate from state statutes of limitations for debt issues.

Learn the lifespan of a judgment in your state at the Bills.com Statute of Limitations Laws by State page.

The start of the 7-year period begins at the date of first delinquency, or if no payments are made, when the first payment was due. Review your credit report carefully to make certain the dates of first delinquency are reported correctly. Unscrupulous collection agents reset the date of first delinquency to stretch out how long a derogatory account appears on consumer’s credit report. This is illegal under the FCRA.

Just because a debt does not appear on a credit report does not mean the statute of limitations for the debt has passed. The opposite is also true: The passing of a state statute of limitations on a debt does not mean the debt may not appear on a credit report. The federal FCRA and state statutes of limitations are separate and independent of each other.

Whether a debt appears on a credit report does not establish legal liability for the debt. The opposite is also true: You may have legal liability for a debt not reported to the credit reporting agencies. Credit reports are not legal records of every debt a person owes.

If you find charged-off accounts appearing on your credit report after seven years, you may want to dispute the incorrect listings with the credit bureaus.

Some creditors, especially debt purchasing firms, will report inaccurate charge-off dates to extend the amount of time an old account appears on your credit report. If you find any inaccurate information, you should dispute the credit report listing with the bureau in question. See the Federal Trade Commission document FTC Facts for Consumers: How to Dispute Credit Report Errors for more information.

The 7-year rule only applies to derogatory items, not to accounts that you are keeping current, or which you closed in good standing. As long as an account is not considered derogatory, it can remain on your credit report indefinitely. In fact, even accounts that are no longer reporting to the credit bureaus may continue to appear on your report as long as the account is not a derogatory item. It is common to see positive items that are more than 20 years old appearing on a credit report.

Resolving the Debt

As discussed above, the fact that the debt is charged-off does not mean the debt is forgiven or canceled. Your credit report should not be your primary concern. To learn more about your rights and liabilities in the collections process, see Collections Advice. I also recommend you read What Are My Debt Resolution Options?

I hope this information helps you Find. Learn & Save.

Best,

Bill

Bills.com

62 Comments

Recent Best
1500 characters remaining
  • 35x35
    Feb, 2013
    Hugo
    I am trying to pay off my debt because I eventually want to be a home owner. I made stupid mistakes with my credit when I was younger, which now I want to fix. I know I had a debt with Bank of America, Best Buy, Macy's and Tire Kingdom that I stopped paying, in either 2005 or 2006. I just obtained a copy of my 3 credit report, but no where on the credit report I see the above debt either as collection, or charge off...I live in the state of Florida...What should I do??? Please any advised would be helpful.
    0 Votes

    • 35x35
      Feb, 2013
      Bill
      Under the Fair Credit Reporting Act, which is a federal law setting the rules consumer credit reporting agencies must follow, a derogatory item must be removed from a consumer's credit report 7 years after the date of first delinquency. If the dates of first delinquency for the four accounts you mentioned were in 2005, the items fell off of your credit reports in 2012. They may no longer be reported.

      The debts you mentioned are not extinguished, canceled, or forgiven. However, as mentioned, they may not be reported after 7 years. If the original creditor or their collection agents have not pursued you for the debts so far, then you it is unlikely they will do so in the future. In this case, I would follow the cliche, "Let sleeping dogs lie."
      0 Votes

  • 35x35
    Jan, 2013
    Marina
    I had a short sale in 7/2011. The first settled and closed. The second only signed off on the SS once I agreed to a lump sum partial payment and a payment plan for an additional partial amount. My credit report shows the second as a charge-off in 9/11 for the amount not paid, and the payment plan as an unsecured loan starting 7/11. Does this sound correct? Should I be worried about them coming after me for the charge-off amount at some future time? Do I have any strategy for asking them to remove the charge-off?
    0 Votes

    • 35x35
      Jan, 2013
      Bill
      Did you make the lump-sum payment? Did you follow-through on the payment plan as agreed?

      Let's assume the answers to both of these questions are yes. The Fair Credit Reporting Act allows you to dispute inaccurate items appearing in your credit reports at the big-three consumer credit reporting agencies — Equifax, Experian, and TransUnion. If you made the payments as agreed, then the account should not appear as delinquent or a charge off.

      If the answer to one or both of my questions is no, then you do not have a basis to dispute what appears on your credit report.

      You asked if you need to worry about someone pursuing you for the deficiency balance. Original creditors of deficiency balances oftentimes sell these collection accounts to collection agents for pennies on the dollar. How aggressive a collection agent will pursue you depends entirely on the collection agent and its policies — there is no rhyme or reason to which debtors collection agents pick for collections.
      0 Votes

  • 35x35
    Oct, 2012
    Sarah
    Such a wonderful post!Thank you for posting this thing.
    0 Votes

  • 35x35
    Sep, 2012
    nina
    Where do you find the date of when your account went delinquent? I can only find when it was opened. Thank you.
    0 Votes

    • 35x35
      Sep, 2012
      Bill
      The date of first delinquency is shown on your credit reports. Get a no-cost copy of your credit report from one of the big-three consumer credit reporting agencies at AnnualCreditReport.com.
      0 Votes

  • 35x35
    Aug, 2012
    Ginny
    I had no idea that debt had a statute of limitations. I'm sure that the length of time is determined by the type of debt and the state that the person is living in. This is something that I would like to investigate further. Thanks for the post!
    0 Votes

  • 35x35
    Jul, 2012
    Dee
    Question, if a creditor Charges Off a deliquent credit card can they report this each and every month as a charge off on a credit report. It has been going on for over 3 years. Each and every month. Staute of limitations is 3 years in the state that I lived in when I opened the account.
    0 Votes

    • 35x35
      Jul, 2012
      Bill
      Your delinquent account will remain on your credit report for 7 years after an initial 180 days from the time the account became delinquent. The charge-off is a technical term which means that the creditor has placed your account on its book as a bad debt. They still have the right to collect on the account.

      The statute of limitations is a separate issue, The SOL may, protect you in case of a law suit. In most states a creditor can sue you even if the SOL has expired. You need to make an affirmative defense. If you get a court summons do not neglect to answer it. A court judgment can lead to wage garnishments, bank levies and liens on your personal property. The public judgment would also appear for on your credit report for a 10 year period.

      Remember that SOL issues can be quite tricky. Where you currently reside and when you moved there can certainly affect the expiration of the SOL.
      0 Votes

  • 35x35
    Jul, 2012
    Jasmine
    If you have a judgement appearing on you Credit report as well as the original creditor (capital one), how would you go about paying it back? would you contact the original creditor or the person that has the judgement? Also what does charge off vs final charge off mean?
    0 Votes

    • 35x35
      Jul, 2012
      Bill
      Contact the judgment-holder to arrange repayment. Please keep in mind when you contact the judgment-creditor, they could choose to be aggressive. They could accelerate collections, moving to garnish your wages or levy your bank account, consistent with your state's collection laws. Be cautious when you contact them. Learn what is the most that they could get via a garnishment, before you speak, so you don't agree to a higher payment voluntarily than a garnishment would produce.

      In the accounting world, there is no difference between "charge-off" and "final charge-off."
      1 Votes

    • 35x35
      Jul, 2012
      Jasmine
      concerning the charge off question, if SOL is enforced AFTER the first charge off or the first date of delinquency, why is it that I see on the validation letter a first charge off and a final charge off. I am not understanding. I would go with the first for SOL and send the collector a letter right?
      0 Votes

    • 35x35
      Jul, 2012
      Jasmine
      would my account be garnished just once? or continued until the debt is paid?
      0 Votes

    • 35x35
      Jul, 2012
      Bill
      A judgment-creditor may apply an account levy, called account garnishment in some states, as many times as it wishes until the debt is paid in full. Account levy is not a one-shot right.
      0 Votes

    • 35x35
      Jul, 2012
      Bill
      In most states, the clock for the statute of limitations on a breach of contract starts when the debtor misses a payment. For example, if the creditor and debtor signed a contract or had an oral contract where the debtor agreed to repay a debt on July 20, but doesn't, the date of breach is July 21. That is when the clock starts. Statutes of limitations are state laws, and each state's rules apply.

      The rules for credit reports are federal, and can be found in the Fair Credit Reporting Act. The FCRA sets the rules credit reporting agencies, such as Experian, Equifax, and TransUnion, must follow. The FCRA uses the "date of first delinquency" phrase you mentioned. The date of first delinquency starts the clock for the 7½-year rule mentioned in the FCRA. The 7½-year rule sets how long the credit reporting agencies may report most derogatory entries on a consumer's credit report.

      The 7½-year rule for credit reports is separate and independent from each state's statute of limitations rules. For example, a derogatory item appearing on a credit report may be older than the consumer's state statute of limitations for debt. Conversely, a debt may fall off of a credit report after 7½ years, but still be within a state's statute of limitations. That is what I mean when I write the 7½-year rule and each state's statute of limitations for a breach of contract are separate from each other.
      0 Votes

    • 35x35
      Jul, 2012
      Jasmine
      thank you!
      0 Votes

  • 35x35
    Jun, 2012
    Meg
    This spring my husband received a letter from a collection agency seeking payment of 1998 (car) and 1999 (motorcycle) tax bills from the Town of West Hartford, CT for a car and motorcycle he owned when he lived there. He was unaware until receiving this letter that he had any oustanding tax bills. He moved to CA in May of 1999. I paid his 1997 tax bill plus interest in 2005 when we were contacted by the same collection agency. I was not told that there were any other bills outstanding when I made that payment. If I had known, I would have wanted to resolve all bills at that time. The collection agency said that they did not know about the 98 and 99 debt in 2005. It claims that it just found out about these debes. The collection agency states that it is collecting on behalf of the Town of West Hartford and did not purchase the debt. It states that by statute neither the agency or the Town can resolve the debt for less than demanded (a large amount of interest has accrued). Apparently, there is a 15 yr. statute of limitations in CT and the tax collector does not have to show bills were sent or received. The Town of West Hartford apparently was not very thorough with its billing as my husbands former roommate was also recently contacted by the collection agency seeking a few thousand dollars for his unpaid auto tax bills that he was unaware of. My husband claims that he does not recall receiving any bills that he just ignored. Can these debts still be reported to the credit bureaus? I do not want to jeopardize our excellent credit, but it is annoying to have to pay a large amount of interest on debts we were not even aware existed - expecially since I would have taken care of it 7 years ago had I been advised of other outstanding debts at that time. Thanks so much for your advise. - Meg
    0 Votes

    • 35x35
      Jun, 2012
      Bill
      I assume, note that word choice, the delinquent taxes are not tax liens. If so, the FCRA catch-all provision applies, and the debt can appear for 7 years from the date of first delinquency:
      Any other adverse item of information, other than records of convictions of crimes which antedates the report by more than seven years.

      My advice? Validate the debt. A debt that cannot be validated may not be collected. If the collection agent validates the debt, then send it a cease communications notice.

      0 Votes

    • 35x35
      Jun, 2012
      Meg
      Thanks Bill. I did send a certified/return receipt letter when we were first contacted seeking copies of all bills sent and records of any payments. What I got back was a computer printout of the amts. claimed and info claiming that the statute of limitation is 15 years, that the debts cannot be settled for less than owed by statute, and that by statute, the debt is owed regardless if bills were sent or received. I will seek further info. One thing I am confused about. The taxes were due over 7 years ago. So the debts cannot be reported to credit bureaus? Thanks - Meg
      0 Votes

    • 35x35
      Jun, 2012
      Bill
      Are the tax bills tax liens? If so, then a tax lien can appear on a credit report for seven years from the date it was paid.

      Are the tax bills the result of a civil suit, civil judgment, or an arrest? If so, these can appear for seven years or the governing statute of limitations, whichever is longer.

      Any other adverse item of information, aside from a criminal conviction, can appear on a credit report for no more than seven years from the date of first delinquency.
      0 Votes

  • 35x35
    Jun, 2012
    Marie
    Hi there, I recently applied a credit card to Best buy which I have been approved for. Little did I know it is being operated by Capital One. About 12 Years ago, I had a CC from capital one that went into default. That has now past the statue of limitation and has since been sold to various collection agencies. I am wondering now that I've reopened an account with Best Buy.. Could they use that to pursue an old debt or to make it valid, although it's a completely different account # and CC?
    0 Votes

    • 35x35
      Jun, 2012
      Bill
      What you described is possible if Capitol One wrote a clause that you described into the application for the Best Buy credit card. Review the application you signed to see if you can find any rights of offset, or similar clauses in the application.
      0 Votes

  • 35x35
    Jan, 2012
    April
    Capital One repossessed my car in late 2009. The balance was paid. They sent me a letter saying "Our records now reflect your account as settled in full and will also report your account as settled in full to the four major credit reporting agencies." Instead they reported it as a charge-off, saying I still owe $5600.00. I have disputed the item on my TransUnion, Experian, and Equifax report multiple times, and each time all three credit bureaus respond with "The investigation found this to be true, we're leaving the item on the credit report." What in the world do I do now?!
    0 Votes

    • 35x35
      Jan, 2012
      Bill
      My answer may either infuriate you or make you feel much better. I believe whether creditor reports the account as settled in full or settled with a charge-off would not matter to your credit score. The damage was done by the account delinquency, and not the details of how the delinquency is reported.

      Concentrate your efforts on improving your credit score.
      0 Votes

    • 35x35
      Jan, 2012
      April
      Well dangit. I've gotten denial letters lately stating the "amount of delinquency" was their reason for denying my credit; I was hoping that making that zero would help. Thank you for your response, Bill! I've been wondering about this for a while now!!
      0 Votes

    • 35x35
      Jan, 2012
      Bill
      Interesting! My earlier answer was incorrect in your case. The underwriters at the bank or business where you applied for credit did review your credit report, and did not just pull your credit score, in determining your credit worthiness.

      Back to your original question. According to the facts you shared, Capitol One promised one thing, but did something else. Specifically, in exchange for you paying Capitol One a settlement amount, it promised to notate your account in a certain manner, which it did not. You may have a breach of contract case against Capitol One. Consult with a lawyer in your state who has consumer law experience to learn more about your rights.
      0 Votes

  • 35x35
    Nov, 2011
    El
    Hello Bill, I had a target credit card [300 limit]15 years ago, i did charge on it and then i payed it off and cut it up ,and cancelled it,because interest was so high,But i recently looked at my report and it is on there saying i owe like $375 and wont be off my report til 2015, I don't have the receipts from back then to prove i paid, but it has been showing up on my credit ever since, what should i do please help?
    0 Votes

    • 35x35
      Nov, 2011
      Bill
      Are you sure that it is the same account? Does the account number on the report match your old account number? When does it show that the account was opened? What date does it show for the last reported payment?

      You should dispute the account with the credit bureaus. If the account is not the same one that you had years ago, you may be a victim of identity theft (though it seems likelier that an unscrupulous collection agency is trying to re-age your debt).
      0 Votes

  • 35x35
    Sep, 2011
    Lindzee
    Hi there, your information is very helpful, thank you. I am a single, middle/lower income mother living in PA. I have a bankruptcy from 2007 along with around 150K in mostly private, unconsolidated, delinquent and charged off student loans between 2003 & 2006. I have recently been contacted with an offer of paying only 20% to clear roughly $75K of the loans. If payment is not received within 30 days the letters state that they will report to the IRS. I have no collateral and wondering if there are any options to get a loan to pay the 20% to clear some of the loans. I don't know where to go. If not, what will happen if they contact the IRS? OR should I just wait this mess out and see if anything clears with SOL?
    0 Votes

    • 35x35
      Sep, 2011
      Bill
      To qualify for a loan you need strong credit and income. Even then, unsecured loans are hard to come by these days and those that are available tend to have a very high interest rate.

      If the debts are forgiven by the lender, the forgiven debt is reported to the IRS as taxable income. You may be able to avoid declaring the debt as income (and having to pay taxes on it) by using the IRS' Form 982, if you meet the IRS' test for financial hardship. Consult with a tax professional to see if you can use the Form 982.
      0 Votes

  • 35x35
    Sep, 2011
    grace
    Hi, I used to be a resident of NC, but moved to NY and purchased a car from an NC car dealer I used to do business with, using my old NC address for the paperwork and credit check. I moved to CA while the car was being built and shipped, so it was rerouted to CA where I picked it up at the shipping port. I later I moved to PA, but the car was repossessed in CA where I left it prior to my move. I have since moved overseas (about 2 years ago, but maintain a drivers license in PA for identification and so I can drive legally when I visit the US.) My question then is, ... what "state" governs my statute of limitations?
    0 Votes

    • 35x35
      Sep, 2011
      Bill
      Find the contract for the vehicle loan. It almost certainly contains a choice of laws clause. If so, there is your answer. If not, please read the Bills.com resource Statute of Limitations page, and then consult with either a California or Pennsylvania lawyer who has experience in civil litigation. Why California or Pennsylvania? It is unclear to me if you were a California or Pennsylvania resident when the repossession took place, and if there is no choice of laws clause in your contract, then either California or Pennsylvania law applies.
      0 Votes

  • 35x35
    May, 2011
    Sophia
    Hi Bill, I live in California. I had several credit cards that became past due in June/2008. I have been getting collections notices on and off from all the companies. I also had a timeshare that was purchased in 2002 and defaulted in 2008. I am getting a judgement "threat" letter from the timeshare company. I have not made any payments to any of the cards/timeshare since June2008. The SOL for all of these should expire on June 2012? For the timeshare I had an attorney call me at work to ask me to pay otherwise she will take me to court, I had agreed but never paid, would that resart my SOL for the timeshare? Also I see a collections co.purchasing a credit card debt from 2008 and stating opened 2011- could I fight this? Thanks you in advance for your help.
    0 Votes

    • 35x35
      May, 2011
      Bill
      The quick (and potentially wrong) answer to your question is the statute of limitation for credit cards (and other contracts) is four years for California residents. Contracts may contain a choice of laws clause that, in effect, sets the statute of limitations to a different state's value. For example, if a California resident signs a contract that has a choice of laws clause whereby the parties agree to use Ohio's laws in the event of a dispute arising from the contract, the statute of limitations will be 15 years. Therefore, the accurate answer to any statute of limitations question is the series of questions, "What choice of laws did you agree to, and if you didn't agree to one, in which state do the signatories reside, or in which state is the court where the dispute is litigated?"

      In civil law, statute of limitations is an affirmative defense — it is a legal excuse. In all states except Wisconsin, a collection agent or original creditor may continue to collect the debt privately after the statute of limitations expires. However, if the statute of limitations expires and the creditor files a lawsuit, the defendant must raise the statute of limitations defense in a timely manner. The court will not raise this defense for the defendant.

      Regarding the changed date of first delinquency on your credit report, that is illegal if it was done so without the consumer's permission, and is a violation of the Fair Credit Reporting Act.

      See also the Bills.com resource California Collection Laws to learn about your rights and liabilities.
      0 Votes

    • 35x35
      May, 2011
      Sophia
      Thank you Bill for your information. Although Im trying to wait for the debt to be legally taken off, I think Im headed for bankruptcy. I had a friend that was able to get an attorney to file the bankruptcy and include his fee in the bankruptcy somehow and therfore she didnt pay anything. Have you heard of this before? and also since I only have credit card debt and the timeshare, would it be just easier for me to file without an attorney? I dont own a home and would like to eventually purchase one, what would it be faster to "heal" my credit?wait for SOL or BK7? Thanks again!
      0 Votes

    • 35x35
      May, 2011
      Bill
      I have no idea how someone included the attorney's fees in the bankruptcy filing. The forms are set up specifically to not allow what your friend suggested. Plus, as a practical matter, the bankruptcy lawyer is probably not a charity, and must be paid for his or her time.

      Regarding the time to credit healing, see the Bills.com resource Short Sale, Foreclosure, Bankruptcy & Your Credit Score.
      0 Votes

  • 35x35
    May, 2011
    arlene
    I have a state tax lien on 2 of my credit reports under public records. It has expired the statute of limitations for the state. However in trying to qualify for a mortgage we cannot find a lender who will take us with this lien. Since it is uncollectable, can I request for this to come off my report or when does it come off. It is unpaid and no payment has ever been paid towards it.
    0 Votes

    • 35x35
      May, 2011
      Bill
      The statute of limitations on a debt are set by state law. Federal law, called the FCRA, the Fair Credit Reporting Act, controls what can appear on a credit report. Two separate laws; two separate rules. Consult with a lawyer in your state to learn the statute of limitations on tax liens for your state. In some states, there is no statute of limitations on a tax lien. Regarding the FCRA, tax liens must be removed 10 years after they are paid.
      0 Votes

  • 35x35
    May, 2011
    Miya
    I have multiple charge-off acounts on my credit report, they will all dissapear in 2013 & 2014. If I begin to make payments now will they stay on my credit report longer due to recent payment?
    0 Votes

    • 35x35
      May, 2011
      Bill
      The date of first delinquency is significant, and not subsequent activity (or inactivity). Please see the discussion on US Code Title 15, §1681c in the original answer above under the section labeled "Credit Report."
      0 Votes

  • 35x35
    May, 2011
    Miya
    I have multiple charge-off acounts on my credit report, they will all dissapear in 2013 & 2014. If I begin to make payments now will they stay on my credit report longer due to recent payment?
    0 Votes

  • 35x35
    May, 2011
    shannon
    I have a charge off on my credit reports from GMAC on a car loan that was my ex husbands. Our divorce papers indicate the loan was his sole responsibility. He has since passed away and now I am stuck with the repo on my credit. What rights do I have against the collection agencies that keep coming after me?
    0 Votes

    • 35x35
      May, 2011
      Bill
      Was the GMAC loan a joint account? Were you a co-signer (a guarantor)? If the answer to either of those questions is "yes," then you have liability for the debt. A divorce decree is binding on both spouses but not third parties, generally speaking. Consult with a lawyer in your state who has consumer or family law experience to learn specific answers to your questions about the liability for the debt.

      If the loan was not joint, nor were you a guarantor, then you have no liability for your ex-spouse's debts. Consult with a lawyer who has consumer law experience and ask if you have a cause of action against the collection agents.
      0 Votes

  • 35x35
    Apr, 2011
    Vic
    I have reviewed my credit report recently and notice that I have Charged Offs on old debts that I had paid off in full. How do I correct this? I have disputed it through the company and credit reports, but not changes were made to correct.
    0 Votes

    • 35x35
      Apr, 2011
      Bill
      It would be helpful to learn more about your situation.
      1. How did you dispute the incorrect entries? Online? With paper letters? How long ago?
      2. What, if any, response did you receive?
      3. What evidence do you have to show the entries are incorrect?

      Keep in mind that even though you paid the delinquent debt, the derogatory information can remain on your credit report for 7½ years after the date of first delinquency.

      0 Votes

  • 35x35
    Mar, 2011
    Szanne
    Hello. I had a B/K that was discharged In Feb of 06 and had an existing car loan with B of A the vehicle was filed properly on schedule C as exempt. Later in July of 06 I fell behind on payments and the bank said they would repo the car. We worked out the settlement.The car loan with Bank of America was settled for 6000.00 I still owed 7000.00. Now in my Experian credit report it shows Credit or original amount 16,190.00 $0 Bal as of Aug 2005 Account Hstory Debt included in Chap 7 B/K I have contacted the credit agency's and B of will not change how hey reprt this. Is there anything I can do?
    0 Votes

    • 35x35
      Mar, 2011
      Bill
      I am not confident I understand the chain of events you described. Consult with your bankruptcy lawyer to learn if Bank of America is complying with bankruptcy code in how it is reporting the bankruptcy on your credit score.
      0 Votes

  • 35x35
    Mar, 2011
    al
    Hi Bill, quick question. I was served for in july 2010 for a debt from 2006. my first missed payment was in june. I made a partial payment which did not meet the minimum monthly payment due in august. Does the SOL start in august, my last payment(although partial) or with the missed payment in june? I am in california, thanks
    0 Votes

    • 35x35
      Mar, 2011
      Bill
      It is my understanding that any payment, even a partial one, resets the statute of limitations clock.
      0 Votes

  • 35x35
    Dec, 2010
    angel
    Bill, i have several collections reporting on credit report most of them have an expired sol(which is 4 years in california). this means i dont legally have to pay them but will they still keep reporting it on my credit report?? how long before they're removed from my credit?? also, i have a charge off. what does this mean and when will it be removed it has been more than 4 yrs aswell. thank you for your help.
    0 Votes

    • 35x35
      Dec, 2010
      Review the original answer above for a general discussion of the relationship between credit reports and a state's statute of limitations. In a nutshell, there is no link between a state's statute of limitations on collecting a debt and the federal rules credit reporting agencies must follow when displaying a derogatory entry on a consumer's credit report. Two government entities — two sets of rules. Also, review the original answer above to gain a richer understanding of what an expired statute of limitations means.
      0 Votes

  • 35x35
    Jun, 2010
    Bill
    Regarding your available credit question, if a potential creditor, such as a mortgage company, sees the $2,100 delinquent account as relevant to judge your creditworthiness, then its perspective is not in error. Regarding the more harm than good question, this depends on your timing. If you are applying for a mortgage or other credit account and you want to maximize your credit score quickly, then your choice is clear. However, if you are working to improve your credit score as a matter of good financial hygiene, then wait and let this old account roll off of your credit report in a year.

    You used the phrase "reinstating the debt." Resolving the account, either by paying the entire balance or agreeing to settle the debt for less than the full balance, is not reinstating the debt.
    0 Votes

  • 35x35
    Jun, 2010
    Sam
    I have a charged off credit card account. The balance of this account is $2100. This $2100 balance is being factored into my total available revolving credit balance. This is making it seem as if I am using more of my available credit than I actually am lowering my FIFO score. Is this being reported correctly? Should the charge off balance affect my revolving credit? I would like to pay this account but have been given conflicting advice. It will drop off of my report in less than a year and I fear doing any more harm reinstating the debt. My main concern is cleaning my report. Thanks for your help
    0 Votes

  • 35x35
    Feb, 2010
    Bill
    Under the FDCPA, the debt can appear 7½ years from the date of first delinquency. That date cannot be reset by a collection agent or anyone else, for that matter, under law. That date will not be reset if you settle the debt. That date will not be reset if you do nothing. That date may not be reset if Collection Agent A sells you account to Collection Agent B.
    0 Votes

  • 35x35
    Feb, 2010
    Beverly
    This debt went to collections two years ago. This means the debt will stay on the credit report for five more years. If I settle this debt now either in part or full payment, will the date for this debt to stay on credit report be reset back to 7 years (i.e. from the date of last payment which was paid to the collection agency?
    0 Votes

  • 35x35
    Feb, 2010
    Bill
    Bankruptcy law is federal, but each state has unique exemptions for residents in that state. How a second mortgage is handled in a bankruptcy varies by state. Consult with your bankruptcy attorney to determine if Greentree has the right to foreclose, or if your bankruptcy wiped out Greentree's claim completely.
    0 Votes

  • 35x35
    Feb, 2010
    bob
    If a second mortgage was included in a chapter 7 bankruptcy but not reaffirmed what will happen after the account has been charged off after 180 days. Greentree is refusing to do a loan modification because they are saying we do not legally owe the debt anymore BUT they still want their monthly payment if we are going to live there. THe house is worth approximately $188 now and the county has assessed it at $165,000 first mortgage is a balance of $212,0000 second mortgage is $77,000. Would you send them the money if you could not afford it. WOuld they foreclose or are they just going to try and threaten us with garnishment. Because i thought they could not garnish our wages etc because it was not reaffirmed and they have said we do not legally owe the balance. RIght????
    0 Votes

  • 35x35
    Feb, 2010
    Bill
    The answer to your question is "absolutely not." Under the FDCPA, the debt can appear 7½ years from the date of first delinquency. That date cannot be reset by a collection agent or anyone else, for that matter, under law.
    0 Votes

    • 35x35
      Feb, 2011
      Julie
      I have 2 credit cards that were charged off in 2006 and in 2009 collection agencies are reporting the debt on my credit report as well. Do I have to wait the full 7.5 years when the charge offs fall off my credit report before I can get the collection agencies marks off my credit report too? It is confusing since they are reporting in 2009 and it looks like new debt versus the same old debt that was charged off years ago.
      0 Votes

    • 35x35
      Feb, 2011
      Bill
      There are a few primary issues at play: your obligation to pay a debt, the actions that can be taken against you for non-payment, and how your credit rating is affected.

      In regards to your credit report, the debt should fall off of your report 7 years after the charge-off in 2006 (the half a year likely being the time it took from your cessation of payments to the date of charge-off). There is nothing that you can do to make the collection accounts disappear before then and not re-appear on the report.

      Given what you wrote, were I in your position, I would be most concerned about the collections efforts leading to a lawsuit against you. I suggest that you look at the statute of limitations for credit card debt in your state. It could be the case that you don't have to pay on the debt. Make sure to look into this, before you give a single penny to any collector, as making payment will re-start the clock on the statute of limitations. Even making a verbal commitment to pay can re-start the clock. Statute of limitations issues are very complicated. I recommend speaking with an attorney in your area, so you get a legal opinion about your options.

      If the statute of limitations has not been reached, then you need to think about what action you will take if the debt collection becomes aggressive. You may want to try negotiating a reduced settlement with your creditor or working out a payment plan. Depending on the size of the debts and your overall financial situation, you may want to consult with a bankruptcy attorney, too.
      0 Votes

  • 35x35
    Feb, 2010
    emily
    I recieved a call from a collection company regarding a credit card account that was charged off 15yrs ago. This stayed on my credit report for the 7yrs, and has long since been deleted. Can this collector put this debt back on my credit report since we have recently spoken regarding the debt?
    1 Votes