Is it "safe" to re-establish good credit history?
Date: Sun, 08/31/2008 22:38
A person had poor credit resulting from several defaulted/charged-off credit cards. Some of the accounts got sold to JDBs and lawyers, while others remained under the collection agencies of the original creditors. The records stayed in the person's credit reports for 7 years before finally being removed by the CRAs.
Question: Will it be "safe" for this person to start re-establishing his credit history by opening new credit card accounts and paying on time? Would it be possible for the buyers of the original bad debts --- those that already got taken off the credit reports --- to discover the person's new contact details and resume collection efforts (maybe even sue)? Given that these debts are 7+ years old debts, would it still be possible for them to be verified and linked to the debtor? And if this happened, what options does this person have to limit the financial/legal impact on him?
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.