Homes for Sale in Clifton Park NY. Josh Gonzalez, a Local Real Estate Agent with Coldwell Banker Prime Properties in Clifton Park NY. Things you should know about Debt Collectors CONTINUED... 2 of 5
Homes for Sale in Clifton Park NY. Josh Gonzalez, a Local Real Estate Agent with Coldwell Banker Prime Properties in Clifton Park NY. Things you should know about Debt Collectors CONTINUED... 2 of 5
5. How long does a delinquent debt remain on my credit report?
Delinquent debts remain on credit reports for seven7 years. Chapter 7 bankruptcies remain on credit reports for 10 years.
Homes for Sale in Clifton Park NY. Josh Gonzalez, a Local Real Estate Agent with Coldwell Banker Prime Properties in Clifton Park NY. Things you should know about Debt Collectors CONTINUED... 2 of 5
6. If I pay a delinquent account, will that remove it from my credit report?
No. Payment will not automatically remove the debt. You may be able to negotiate removal of the negative information as part of the payment agreement with a third-party collection agency. T
he original creditor is not as likely to negotiate removal of the negative information.
If you do attempt to negotiate removal of the negative information from your credit report, make absolutely sure to get the terms of the agreement in writing and signed by someone with the authority to request removal of the information. This is essential because if the collection agency does not follow through with its promise to contact the credit bureaus you can send the written agreement to the credit bureaus yourself.
A good resource for help with re-establishing good credit is a member agency of the National Foundation for Consumer Credit, such as the Consumer Credit Counseling Service. These nonprofit groups have offices in most cities. To find the office nearest you, call or write:
National Foundation for Consumer Credit, Inc.
8611 Second Avenue, Suite 100
Silver Spring, MD 20910
(800) 388-2227
www.nfcc.org
Beware of other credit repair services. Generally they promise a lot, charge a lot and, deliver little. For more information about credit repair services see www.ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm.
Homes for Sale in Clifton Park NY. Josh Gonzalez, a Local Real Estate Agent with Coldwell Banker Prime Properties in Clifton Park NY. Things you should know about Debt Collectors CONTINUED... 2 of 5
7. I have a debt older than 7 years. Should I pay it off even though it no longer appears on my credit report?
If you are still being contacted about a debt that is this old, quite likely this account has been sold and perhaps resold a number of times. There is a thriving business in debt reselling. Some companies buy old debt for pennies on the dollar. Companies then stand to reap huge profits if you agree to pay the original amount owed. As we have said, there is no statute of limitations on how long a collection effort can go on, but your state may have a statute of limitations on how long a creditor or collector has to sue you.
You may feel you have a moral obligation to pay all debts, no matter how old. Some experts recommend not paying the debt that is very old. In many states, paying an old debt may reactivate the statute of limitations on how long a creditor can sue to recover the debt. If this results in a court judgment, the negative judgment will stay on your credit report for seven years.
This is a complicated decision and you would benefit from consulting a member agency of the National Foundation for Consumer Credit, such as the Consumer Credit Counseling Service. These nonprofit groups have offices in most cities. To find the office nearest you, call or write:
National Foundation for Consumer Credit, Inc.
8611 Second Avenue, Suite 100
Silver Spring, MD 20910
(800) 388-2227
www.nfcc.org
Homes for Sale in Clifton Park NY. Josh Gonzalez, a Local Real Estate Agent with Coldwell Banker Prime Properties in Clifton Park NY. Things you should know about Debt Collectors CONTINUED... 2 of 5
8. A debt collector has violated my rights. Can I sue?
Yes. The Fair Debt Collection Practices Act (FDCPA) allows individuals and class action plaintiffs to sue in federal or state court within a year of the violation. Under the FDCPA, if you win, you may recover actual damages plus up to $1,000. Attorney fees and court costs may also be recovered. Members of a class action may recover actual damages plus a total of $500,000 or one percent of the net worth of the debt collector.
Attachment A to this guide, www.privacyrights.org/fs/fs27plus.htm, may have information about collection laws in your state.
There are many private practice attorneys who specialize in assisting consumers who have experienced violations of state and federal debt collection laws. The web site of the National Association of Consumer Advocates, www.naca.net, provides a directory of member attorneys. The search process enables you to find attorneys near you and to specify those with debt collection experience, http://members.naca.net/findanattorney/.
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