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Question
hello.

I'm a permanent resident of Alabama.

In 2008-2010 I lived in Georgia to attend college.

While there, I made some mistakes that probably every 20 year old makes.

So here is my issue. I owe Georgia Power $357 for late payments on my electric bill back in 2010.

Truth be told I completely forgot that. They stopped sending me letters back in 2011, and I just forgot.

So, SOL in GA is 6 years.

If I pay the $357 today to them, will that remove it from my credit report?
Should I wait and just let it fall off?
If I pay it, will it start a new 6 year negative mark with "Paid/Charge-Off"?

Answer
Hi Kayla:    You have a mistaken understanding about the law that the credit reporting agencies follow when there is a debt that is (or was) outstanding that was not paid.   Insofar as the credit report goes, what the credit reports do with this debt has nothing to do with any state's statute of limitation.   Instead, this situation is regulated by the federal Fair Credit Reporting Act - a law from the 1960's.    In other words, even if you pay this debt that has been already charged off, there is  a very real likelihood that the negative entry will remain -   They will simply mark it ass a paid collection account.

However, the more important question is what can you do to get this negative report off your back.   Your options at this point depend on facts you don't state in your question.     

This would be easier to discuss if you called me on the telephone.   I will not charge you just to talk on the phone    You can call me anytime you wish, including this weekend, at this number.

Jack Hall  J.D.
915 261-3893

Creditors and Bankruptcy

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Can answer questions about bankruptcy, lawsuits or judgments that have been filed against you. Also can answer questions about tax issues, property that is facing foreclosure, repossession of vehicles, and wage garnishments. 915 261-3893

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Over 30 years experience assisting consumers with lawsuits and bankruptcy matters since graduating from law school.

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Numerous published appellate court opinions; Law review publications; Article on consumer bankruptcy in Black Enterprise magazine; was requested to author a book on consumer bankruptcy by Doubleday Publishers

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Over twenty years of education including law degree (J.D.); masters and bachelors degrees in political science; author of magazine articles related to consumer bankruptcy; hundreds of hours of continuing education legal education and seminars

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Have had well over a thousand bankruptcy clients during the past 30 years and have had many clients in civil lawsuits during the same time period

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