Jump to content

How long can creditors/collectors snoop into your credit report after getting paid?


Recommended Posts

Its called "permissable pupose"...you can read about it in the FDCPA and FCRA. Lots of variables, but basically as long as you owe them money (or have settled for less than the full amount) they can pull your credit reports. Once you've paid them off completely, they no longer have permissable purpose, and you could probably sue somebody for letting them look.

Link to comment
Share on other sites

Its called "permissable pupose"...you can read about it in the FDCPA and FCRA. Lots of variables, but basically as long as you owe them money (or have settled for less than the full amount) they can pull your credit reports. Once you've paid them off completely, they no longer have permissable purpose, and you could probably sue somebody for letting them look.

Are you serious??????? You're telling me that anyone who settles a debt for a lesser amount, which the collector considers paid in full, can still have their report checked years down the road by these people? Doesn't that lower the credit score for people who are trying to improve their numbers? The purpose of "settling" an account, is to be done with the debt and the collector/creditor.

If that's true, it really doesn't sound good. I'll check out the FDCPA and FCRA stats you mentioned. There has to be some type of limit to this "permissable purpose" thingy. The only reason I can see a collector would snoop into a report, after someone has satisfied a settlement agreement, is for some type of ulterior motive to get more money.

Link to comment
Share on other sites

Are you serious??????? You're telling me that anyone who settles a debt for a lesser amount, which the collector considers paid in full, can still have their report checked years down the road by these people?

Yep, and have the difference between the settlement and the amount originally owing resold.

Link to comment
Share on other sites

You're telling me that anyone who settles a debt for a lesser amount, which the collector considers paid in full, can still have their report checked years down the road? Doesn't that lower the credit score for people who are trying to improve that? The purpose of "settling" an account, is to be done with the debt and the collector/creditor.

Yep...yep...and nope.

The problem is mixing terms again. If the OC still owns the debt, paying the CA may NOT have any effect on the OC's balance. If it ain't in writing, it didn't happen. And, any agreement you get out of the CA may not be binding on the OC. The CA may tell you its paid, but the OC might think otherwise. If the debt has been sold, then the OC no longer has any claim to the money and no longer has any "permissible purpose", but, any CA that's working for the JDB puts you at risk again. And, each time the debt, or remaining balance get sold, you've got a whole new bunch of low-life's with PP.

The only 100% safe way is to pay the OC 100% of what they want...and get the settlement in writing, and approved by your lawyer.

Link to comment
Share on other sites

The subject of the post was specifically about "after getting paid" -- except for errors in reporting where there may be a permissible purpose (case law on that point is mixed), when the amount is paid and the account is closed.

That's what I'm saying!! I would think it would be closed, and offlimits to former collectors, if they've received the money they agreed to accept on a timely basis. As you've mentioned, unless there is incorrect information on the report they need to update, I can't see any reason for them to be snooping. Even then, I would think the bureau would only need to contact them to verify the correct information, and update the report without their peeking. I was hoping there was a time limit of a few months to a year at the most.

Link to comment
Share on other sites

There's no limit in statute, and they may have a permissible purpose in case of dispute for the duration of time the account is being reported.

ETA: of course, if you'd read the whole FCRA, you'd have known there was no limit in statute. It's amazing what is -- and what is not -- in there.

Link to comment
Share on other sites

No absolutes again. You may even have to take them to court...

But, the FCRA (which governs such things) is biased in their favor. It basically says that if they think they have permissable purpose, they're allow to ask first and apologize later. As long as they have "systems in place" to avoid flagrant errors, if they think you owe them money, they can ask.

Link to comment
Share on other sites

Yep...yep...and nope.

The problem is mixing terms again. If the OC still owns the debt, paying the CA may NOT have any effect on the OC's balance. If it ain't in writing, it didn't happen. And, any agreement you get out of the CA may not be binding on the OC. The CA may tell you its paid, but the OC might think otherwise. If the debt has been sold, then the OC no longer has any claim to the money and no longer has any "permissible purpose", but, any CA that's working for the JDB puts you at risk again. And, each time the debt, or remaining balance get sold, you've got a whole new bunch of low-life's with PP.

The only 100% safe way is to pay the OC 100% of what they want...and get the settlement in writing, and approved by your lawyer.

I tell ya, I'm more confused since finding this board than before. lol I'm going to call the collector tomorrow, and request that they add a few things to the letter I've already received. Something which says specifically, that they own the debt, and after it is paid, I will owe NO ONE ELSE INCLUDING THE OC.

Right now the letter states the name of the Original Creditor, Original Balance, settlement amount with the collection office, when my payments start, end, and that I will not owe anything further after I've paid the $7300.

I was pretty confident with the above letter, until after I reading this. What you're saying is that I can pay the collection office the $7300, and the original creditor could later say I've paid nothing??? Or ask for the interest anyway? Whew! Now I know why lawyers get paid so well. This is a headache.

Link to comment
Share on other sites

If you don't mind, lets back up to the beginning here...

You orginally owed somebody money, right? Who was that?

I'm gathering that you refinanced that amount...right? With somebody else? Who was that?

And now, you've defaulted on the refinance, and you've got a CA telling you that they can make it all right if you pay them $50 a month for 12 years, right?

I get the feeling we may have been giving advice without understanding the whole problem...

Link to comment
Share on other sites

If you don't mind, lets back up to the beginning here...

You orginally owed somebody money, right? Who was that?

I'm gathering that you refinanced that amount...right? With somebody else? Who was that?

And now, you've defaulted on the refinance, and you've got a CA telling you that they can make it all right if you pay them $50 a month for 12 years, right?

I get the feeling we may have been giving advice without understanding the whole problem...

There are only two variables here(OC & Collector). I originally took out the loan with one finance company, and refinanced the loan with the same company. That company, recently sold the acount to a collection office. 1, 2, 3.

There is an INCREDIBLE amount of CONFLICTING information here on the internet. Some say, as long as the collector owns the debt, and I have the agreement in writing, it's legally binding. I spoke to a woman this morning who had a similar situation for a $6200 dollar debt, and paid it off in 7 years. Same situation, just less time, and more per month.

All of these opinions can't be correct. So I'm going to make some calls tomorrow, and narrow things down. The internet is a great source...but sometimes too much information, from too many people is just confusion. Thanks for responding with suggestions though. I appreciate the effort and time. :)

Link to comment
Share on other sites

Okay, here's the problem, and maybe the source of the confliction.

If you had an account with Finance company A, and you refi'd it, and that account was not delinquent, when they sold it to Finance company B...then stop using the word "collector". Company B is now the original creditor, and you can take their word as close to gospel as you're going to get.

If you had an account with company A, and you refi'd it, THEN went delinquent, and they sold the account to company B...then stop using the word "collector". Company B is a Junk Debt Buyer (JDB) and you can't trust them to put a stamp on a letter. Their whole business is based on paying pennies on the dollar for the right to take your money. And, they're usually not to legal about the way they do it.

EDITED to add. Sorry...got called away.

Now...if you had an account with company A, and refi'd it...then it went delinquent...but they still own the account...and what you have dealing with you NOW is a collector. STOP. Do not send them money. Call the OC. Paying the collector WILL NOT HELP YOU. You can't trust them. Only deal with the people that actually own the debt...and, IMHO, only with the OC not some JDB.

Link to comment
Share on other sites

Okay, here's the problem, and maybe the source of the confliction.

If you had an account with Finance company A, and you refi'd it, and that account was not delinquent, when they sold it to Finance company B...then stop using the word "collector". Company B is now the original creditor, and you can take their word as close to gospel as you're going to get.

If you had an account with company A, and you refi'd it, THEN went delinquent, and they sold the account to company B...then stop using the word "collector". Company B is a Junk Debt Buyer (JDB) and you can't trust them to put a stamp on a letter. Their whole business is based on paying pennies on the dollar for the right to take your money. And, they're usually not to legal about the way they do it.

EDITED to add. Sorry...got called away.

Now...if you had an account with company A, and refi'd it...then it went delinquent...but they still own the account...and what you have dealing with you NOW is a collector. STOP. Do not send them money. Call the OC. Paying the collector WILL NOT HELP YOU. You can't trust them. Only deal with the people that actually own the debt...and, IMHO, only with the OC not some JDB.

Yes Willing I'm aware of all the above. The original creditor sold my delinquent debt to a JDB. If I mistakenly used the word "collector" it was an error out of habit.

Link to comment
Share on other sites

This question is for judgements, collections, past due debt, ect. When are you free of them?

Okay then, back to your original question. The reporting period for a JDB is controlled by the DOFD for the OC. 7yrs from the date you were first delinquent (and never brought current) with the original creditor, both the OC and the JDB should disappear from your credit reports.

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.