Expert: Regan Shinski - 10/21/2010

Question
My credit report has the original creditor and a collection agency for the same account.  The original creditor is reporting that the account was "purchased" and "charged off".  Date opened is 2/2000, Date Reported is 3/2007, Date of last payment is 9/2004, Date of first delinquency is 6/2004.  The credit agency is reporting the Date assigned is 3/2007, Date of first delinquency is 3/2004, Balance Date is 2/2010, and Date Reported is 2/2010.  So which date do I go by for the Statute of Limitations to take effect?  Do I contact the original creditor first and then if they won't accept payment call the collection agency?  I'm afraid to call the collection agency because I've had one call me before and they were mean, rude and disrespectful.  I'd rather deal with the OC but I don't want to call and then they report the date I call on my credit report as the most recent "reported date".  Help!

Answer
Hi Renee:

You need to be VERY careful here.  First of all DON'T assume the dates and information you are reading is correct!  In fact, studies have shown that over 90% of credit reports contain errors!

Secondly, IF the dates are correct, you may be past the statute of limitations (SOL) anyway.  

Thirdly, IF you make a payment you may be RE-STARTING the SOL!  This depends on the state.

Fourthly, WHY are you considering paying now?  Are you being sued?  Moral reasons?  This is close, may be over the SOL and may be approaching the time where is has to fall off your credit reports anyway.  Paying it now may actually LOWER your score, renew the SOL and keep it reporting LONGER.

Fifth, This is a PRIME case where credit repair should work!  You can get this deleted, without paying fairly easily in most cases through professional credit repair.

To answer your specific questions, the SOL generally starting on the date of last activity.  If you dates are correct, this should be 09/2004 date.

On your question about who to call, as explained above, I do NOT recommend calling anybody.  If you have other information or reasons for your wanting to contact them, please repost your question and I will address it.

Honestly, what I would do is credit repair this account - and any other you have - but this is really a prime account that can be dealt with through professional credit repair.  Go to WWW.FICOFIGHTER.COM for more information or to contact me through that site.

Good luck in whatever pay you choose.

Regan