Expert: Regan Shinski - 3/31/2010

Question
I reside in Ohio and recently I pulled my credit reports. I found that I have 7 negative remarks from credit card accounts that have been sent to a collection agency. My question is how long can these items remain on my report? For instance, on one reported account my first late payment was Jan.2003, should this still be on my report? I disputed the items as inaccurate last year and received no response or actions. When does the statue of limitation begin? Should I attempt to negotiate on these accounts? If I attempt to negotiate, dispute, or contact the collection agency will I effect when the statue of limitation begins? I am in need of help as I attempt to rebuild my credit score. Thank you in advance.

Answer
Hi Jerica:

The Ohio statute of limitations appears to be 15 years for written contracts, so you are about half way there.  This means you are technically at risk of being sued until that expires.

Credit reporting is a COMPLETELY different issue.  The account should stay on your report for seven, sometimes seven-and-a-half years from the date of first delinquency.  This is the first time the account became thirty days late and was never caught up again.  If you are past this date, you should dispute the accounts directly with the credit bureaus as "obsolete."  They should be removed.

Since these appear to be so close to being deleted from your credit reports as obsolete, I would NOT make any contact with the creditors or make any payments.  In some states, making a payment does re-start the clock and may even be grounds to place the accounts back on your credit reports.

However, it is CRITICAL that you do not ignore any lawsuit action taken by these creditors or their collection agencies.  A judgement is one of the worst things you can have.  It really hurts credit building and can lead to wage garnishment, freezing of bank accounts, and other things.  If you receive lawsuit notices, you must react to them.

Good luck, I hope this helps :)

Regan