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Erelph

Credit Inquiry legal on Expired Debt?

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I just checked my credit report as i am being harassed by "Commercial Recovery Systems" on a debt i believe to be expired. The debt was 60 days late on 03/09. I am in New York State and i believe the S.O.L. is 6 years? They inquired on the debt on 9/14. They were contacting me about this debt August 14 and i immediately sent them a Cease And Desist letter. This hard inquiry was made after i sent the cease and desist letter. If i dispute this hard credit inquiry will it be removed? Should i try sueing the company? Any advice or help would be appreciated. 

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@Erelph

 

There are some who say a cease communication would trigger a lawsuit.  But if the alleged debt is indeed past the statute of limitations, then you have a legal defense and a potential FDCPA violation.

 

Hard credit inquiries have a minor impact on your credit score, and should disappear from your credit report in two years, so you have to consider if it's even worth the hassle dealing with it.

 

If you do decide to dispute the hard credit inquiry, then you should dispute first with the Credit Reporting Agency (CRA), and let it complete its investigation and report back to you, per FCRA 611.  This is assuming the alleged debt is past the statute of limitations.

 

If you do this, and there is a FCRA violation, at least you have a private cause of action, unlike if you dispute directly with a OC or JDB per FCRA 623, which has no private cause of action.

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I just checked my credit report as i am being harassed by "Commercial Recovery Systems" on a debt i believe to be expired. The debt was 60 days late on 03/09. I am in New York State and i believe the S.O.L. is 6 years? They inquired on the debt on 9/14. They were contacting me about this debt August 14 and i immediately sent them a Cease And Desist letter. This hard inquiry was made after i sent the cease and desist letter. If i dispute this hard credit inquiry will it be removed? Should i try sueing the company? Any advice or help would be appreciated. 

 

You will not get this inquiry removed via a dispute or a lawsuit.  While their legal remedies available to them on collecting the debt may be limited when the SOL expires, it doesn't mean the debt isn't still owed.  As long as the debt is valid and they are the creditor or the CA hired by the creditor they have a permissible purpose to pull a consumer's credit.  

 

Once the SOL for reporting the debt expires in 2016 THEN their rationale for a pull goes away because they cannot report it to the bureaus.

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You will not get this inquiry removed via a dispute or a lawsuit.  While their legal remedies available to them on collecting the debt may be limited when the SOL expires, it doesn't mean the debt isn't still owed.  As long as the debt is valid and they are the creditor or the CA hired by the creditor they have a permissible purpose to pull a consumer's credit.  

 

Once the SOL for reporting the debt expires in 2016 THEN their rationale for a pull goes away because they cannot report it to the bureaus.

 

Its my understanding that in NYS this debt is already expired because it hit 6 years? I know debt never expires just the amount of time you can be pursued legally for it. I am a bit confused on when the SOL starts and expires. If my first 60 days of non payment is 03/09 wouldn't 6 years from that date be when the SOL is up? This seems like muddy waters

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Its my understanding that in NYS this debt is already expired because it hit 6 years? I know debt never expires just the amount of time you can be pursued legally for it. I am a bit confused on when the SOL starts and expires. If my first 60 days of non payment is 03/09 wouldn't 6 years from that date be when the SOL is up? This seems like muddy waters

 

There are TWO SOLs.  One for filing a suit and one for reporting the debt to the credit bureaus.  The SOL for lawsuit expiring does not extinguish the ability to report the debt.  Technically a debt can be reported for 7 years past the date of first default (which would be January 2009 in your case) that means it can remain on your report(s) until August 2016.

 

Once the SOL for filing a lawsuit expires many creditors will report to the bitter end as it is the only leverage they have to try and induce payment.  Many consumers who hit hard times under go credit repair around the 4-5 year mark and by year 6 want a mortgage.  The only way to get underwritten is to get the negatives dealt with and this can force payment.  The creditors know this and so they hang on to the end hoping for that situation to arise.

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