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Home loans and credit card obligation

Date: Wed, 02/15/2006 - 13:04
Submitted by on Wed, 02/15/2006 - 13:04
Posts: 202330
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My husband and I have applied for a home loan and I have had a few past accounts that were charged off, then paid to the collection agency. On my credit reports the original credit card company has it listed as a charge off, and then there is the paid collection listing from the collection agency. Is it normal to have both on my report? If not, what is the proper way of asking them to take it off.
Also, I have a debt that hasn't been paid on since 1/2001. I live in AR and believe the SOL is up, but will the loan agency that I am dealing with require me to pay for this even though it is late? What should be my next step? I am in a position to pay this debt, but I guess if I'm not legally obligated to do so, then why should I? Very selfish I know, but....
Thanks for any advice!


Beccawinter,

The same account cannot appear twice in your report. Please dispute it with credit bureaus. They will do a back-checking and remove the surplus entry. Since you paid it to collection, dispute the other entry done by OC.

http://forums.debtcc.com/forums/multiple-entry.html

Prepare a dispute letter and send it to credit bureaus through CMRRR. You can visit this thread to collect some information on how to write a dispute letter-

http://forums.debtcc.com/forums/disputeletter.html

You are right on the SOL issue. You are not legally bound to pay a past SOL debt, however it is still your debt. You haven't mentioned how this account is reported in your credit file. Chances are it is listed negatively and bad marks stay in credit report for 7 years.

Paying it in full will make your credit slightly better and your lender will definitely prefer paid accounts rather than unpaid ones.


Submitted by stanley on Wed, 02/15/2006 - 13:33

stanley

( Posts: 1639 | Credits: )


I do believe it is the right thing to do to pay, and will do so, but wonder what will happen when I do pay it, will that make it stay on my credit report another 7 years or is it from the time the debt was occurred. It is reported as bad debt.
I have written a letter to correct my report and appreciate your input!
Thanks,
Becca


Submitted by on Thu, 02/16/2006 - 07:01

( Posts: 202330 | Credits: )


Rebecca,

To the best of my knowledge, if you pay it in full with a lump sum amount, probably the 7 year reporting period will not start again. However, if you decide to pay it in monthly installments, it's up to your creditors if they will restart the clock or not. Chances are, it will be there for another 7 years.

7 year reporting time does not start form the date the debt was occurred. Countdown starts from the day the account was reported as a bad debt.

Please check this thread for more information-

http://forums.debtcc.com/forums/chargeoff-query.html


Submitted by stanley on Thu, 02/16/2006 - 10:43

stanley

( Posts: 1639 | Credits: )