Question about credit and very old debt.?
2010-03-08 at 09:03 pm adminI had 50K worth of charge offs that are all 10 years old. I have no judgements against me. I'm getting offers from collection agents pay $1500 on a $10,000 that is 10 years old. I've heard this is not advisable to pay when it's that old and it won't help my score, is that true?
Answer:If these debts are 10 years or older, paying them may actually HURT your credit score. The date of last activity is what the statute of limitations goes from. Paying $1 on an old debt will actually start the statute of limitations over again, opening the door to further collection action.
Dispute items that are 7 and 10 years and older with the credit bureaus and send cease and desist letter to the collection agents.
Answer:Paying off derogatory items, no matter what the age, will not improve your credit score. The damage is done and will age off 7-1/2 years from the date of first deficiency — nothing restarts that date. If these debts were defaulted on 10 years ago, they shouldn't be showing on your credit report and have no bearing on your score at all.
They are probably beyond the Statute of Limitations (SOL), the timeframe to bring lawsuit. This varies from state to state but typically starts from the date of last activity or last payment. Making a payment would restart the SOL.
Tell the collection agencies to pound sand. If they continue to bother you, just send them a certified, return receipt letter telling them to cease and desist all contact. They have to stop but may sell the debt off to another zombie debt collector.
Answer:That is way past the statute of limitations, and are no longer on your credit score. Admitting them or making a payment restarts the clock. Send them a cease and desist letter as per the FDCPA that they are beyond the SOL, failure to cease and desist can result in a $1000 fine per offense.
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