Possibly Protected By The Statue Of Limitations

I gave my daughter a check for a retainer for the down payment on her car, but the check went to a collector. What should I do?

My daughter bought a car 9 yrs ago and the company asked her to make down payment installments, but needed a check for a retainer for the down payment. Well my daughter paid the down payment in full and forgot to pick up my check. When she went back to get the check, most of those people were gone or fired. My daughter got her license and tags when she made the last of the down payment, but the check was turned over to a collector and is now on my credit. I have challenged this at the credit bureau. We have papers where the car was purchased and financed and paid off. What can I do about this. I don't want to pay this check all over again. I think it's too old to be at the credit bureau with no activity for 9 years.

Bill's Answer

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By Mark Cappel
Published: Aug 12, 2009

If it indeed has been 9 years since the account was put in collections, then you might be protected by the statute of limitations. The Statute of Limitations (SOL) is the date from which a collector can no longer collect through legal recourse (i.e. sue you to collect), and it is based on a running clock from the date of your last payment. The statute of limitations, and collection laws, vary by state. I'd recommend reviewing the Bills.com Collection Laws page.

The date from which an account 'drops off of your credit report' is a credit reporting issue. Keep in mind that the seven years starts running from the date the account was charged off by the creditor, which generally means seven and a half years from the date of last payment. I encourage you to review your credit report carefully to make sure that the dates of last payment being reported on these accounts are correct.

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. The Federal Trade Commission offers advice regarding the dispute of inaccurate credit report listings.

You should always consult an attorney locally if you have questions or legal concerns. I hope that the information I have provided helps you Find. Learn. Save.

Best,

Bill

www.bills.com/

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