Debt Collection Help (I Know It's Boring, but Help!)

[KnitterMama]

Mama G's thread in TAO reminded me of some credit issues I have, I'm wondering what the law is all about in NY. I found a couple websites, but they don't really make sense to me.

So there's a statute of limitations on debts? Like the collector only has a certain period of time to collect from you? What happens after that? Sorry, I am totally clueless on this, so use 2nd grader terminology. I ask because I got royally screwed by one of my former colleges which resulted in an $8,500 debt on my credit. It's from 2001. DH and I are in the process of really actively improving our credit rating, and stuff like this is killing us!

Info would be greatly appreciated!

[KnitterMama]

:

[MommaCrystal]

I've never heard of a statue of limitations on debts, as you call it. A debt is a debt and will be there until you pay it.

What I would do is call the collection agency or whomever it is that is handling your case and try to strike a deal. If have a few grand you can offer that up and probably settle the debt as much as half or more of what you really owe. If not you could also get yourself on a payment plan.

Good luck!

[JustKiya]

Ooohh!!

Yes, there is a statue of limitations on your debtors ability to SUE you for the money that you owe. Beyond that period of time, it's simply a matter of you giving a dang and being willing/able to pay them.

Usually, by the time a debt has fallen off of your credit report, it's outside of the statue of limitations.

I'm going to assume that you have gotten your credit reports from all three agencies (TransUnion, Equifax, and Experian) already? If not - you can get them once a year for FREE - here: https://www.annualcreditreport.com/cra/index.jsp

Bankrate.com has some GREAT articles on paying off old debt/improving your credit report - I don't know the specifics of your situation, so I'd suggest you go there and browse.

This is the actual articles that lists the statue of limitations of different types of debt for different states - the state that you incurred the debt in is the one that matters. http://www.bankrate.com/brm/news/cc/20040116b1.asp

Good Luck!! I've been coaching DH through this process for the last FOUR years, and finally, his credit report is something that a loan officer can look at without running away in horror or falling over laughing. *sigh*

[KnitterMama]

Ah, OK. That makes sense.

I was looking at my credit report though, and it really doesn't make sense to me. I have a bunch of potentially negative things, but it's hard to tell how much I owe. For example, several say "Account charged off/Past due 150 days", and another that says "Transferred,closed/Current, was past due 150 days". I really don't understand what any of that means. Also, it appears that some of my student loans showed-up - but I haven't been out of school long enough to have owed any payments yet. It's possible one or two were deferred, but I'm not sure. I shouldn't have defaulted on any of them.

If I post little pieces can ya'll help me make sense of it? Not enough that any of ya could make use of it...not that my identity is worth being stolen at this point...

What does this mean for instance (some stuff blanked-out in case it would be useful info...)

Status:
Transferred,closed/Current, was past due 150 days.


Date Opened:
05/2002
Type:
Installment
Credit Limit:
$2,583

Date of Status:
06/2005 Terms:120 Months High Balance:
NA

Reported Since:
01/2003 Monthly Payment:$0 Recent Balance:NA

Last Reported Date:
06/2005 Responsibilityndividual Recent Payment:NA


Your Statement:
NA


Creditor's Statement:
Account transferred to another lender."

I don't get it. How can I decifer this report?

[JesseMomme]

I was just reviewing this this morning (I'm in NY) the statute of limitations in NY for the creditors ability to sue is six years, and it should fall off of the report after that.

We have had stuff fall off of dh's report from the early/mid nineties (MIL used Dh's SS# to have on utilities, etc), finally.

[jamesong5]

I'm in Indiana how do I find out the limits here.

TIA

[sonrisaa29]

Originally Posted by KnitterMama

Ah, OK. That makes sense.

I was looking at my credit report though, and it really doesn't make sense to me. I have a bunch of potentially negative things, but it's hard to tell how much I owe. For example, several say "Account charged off/Past due 150 days", and another that says "Transferred,closed/Current, was past due 150 days". I really don't understand what any of that means.


Charged off usually means that the CC company wrote your debt off as uncollectable, usually this happens if you don't pay on an account for 4-6 months...But just because they wrote it off, doesn't mean you don't still owe the debt and the CC company or a collections company could still come after you and even sue for the debt up to seven years (give or take depending on your state) Seven years is also about how long it takes it to fall off your credit report..

Now the thing you have to watch out for is if a collections company buys the debt and then changes your date of last time you actually were current on a payment, it can "re set the clock" or its called reaging the debt which is illegal.


Also, it appears that some of my student loans showed-up - but I haven't been out of school long enough to have owed any payments yet. It's possible one or two were deferred, but I'm not sure. I shouldn't have defaulted on any of them.

Student Loans

1. If your loans are in deferment, they should say that on the status area on your credit report.

2. If you've got a mixture of federal and private loans the grace periods can vary so I would double check with your lenders.

3. Student loans show up on credit reports whether they are in deferment or not, because you borrowed money from them, so its an account

4.Make sure your credit report that you are not being reported for missing any payments while in school fulltime or were you partime?


If I post little pieces can ya'll help me make sense of it? Not enough that any of ya could make use of it...not that my identity is worth being stolen at this point...

What does this mean for instance (some stuff blanked-out in case it would be useful info...)

Status:
Transferred,closed/Current, was past due 150 days.


Date Opened:
05/2002
Type:
Installment
Credit Limit:
$2,583

Date of Status:
06/2005 Terms:120 Months High Balance:
NA

Reported Since:
01/2003 Monthly Payment:$0 Recent Balance:NA

Last Reported Date:
06/2005 Responsibilityndividual Recent Payment:NA


Your Statement:
NA


Creditor's Statement:
Account transferred to another lender."

Did you consolidate, transfer any CC to another CC???

I don't get it. How can I decifer this report?

Most Credit Reports split the accounts into Open, CLosed, and Negative....Print them out and double check all the items listed against any paperwork you may have....

[KnitterMama]

Now the thing you have to watch out for is if a collections company buys the debt and then changes your date of last time you actually were current on a payment, it can "re set the clock" or its called reaging the debt which is illegal.

This is something I am concerned about, since many of the items on the credit report don't list the month/year I incurred the debt. Frankly, I don't have paperwork on a lot of this. I have rough estimates from memory of when the debt was incurred. If I do see that a collection company has re-set the clock, how will I know for sure? "The clock" should be set from the day the debt was incurred, correct? If that is the case I can call the original debt collector to find out and proceed from there.

[kerc]

on student loans:
mine appear on my credit report -- all of them. all 800000000 of them :LOL

but they also say amount due "O" -- because right now they are in deferment.


Do you see that a collection's agency has reset the clock? If you do, you might just call and ask when they acquired the case.

[traceface]

Originally Posted by KnitterMama

"The clock" should be set from the day the debt was incurred, correct?

No, I'm pretty sure the clock is set from the 1st time you became delinquent on the debt, and were never again current.

So if you stopped paying the credit card bill, it's that date. If you paid a little on the bill for a few months before giving up on it - and the acct was never again current - it's the last date you paid as agreed that the clock starts

sorry, is that confusing?