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jwaldorf22

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Does date of settlement reset 7 year CRTP
I am trying to help my fiancé rebuild her credit and after a lot of hard work she only has 1 account left on her CR hat is still in owned by a CA. We just received a letter from the CA requesting a settlement. The debt is about 5 years old and we are still within the SOL for the debt. The OC reports the debt as a charge off and the CA is reporting it as an open account currently in collection. The debt is valid debt that she owes. Here's my question:

If we contact the CA and agree on a settlement (all through certified mail of course) will that reset the 7-1/2 year time that this debt will show up on her CR? I know it resets the SOL but I plan to settle the debt so I'm not concerned about this. We plan on getting a house in the next 3-5 years and since the debt is already 5 years old it is scheduled to come off before then. Also, since the debt was sold to a CA, will it be removed from the OC after the 7 years and because we paid the CA would it reset the clock for their line on her CR?

I'm just worried that if we make a settlement that this debt will continue to show on her CR for another 7-1/2 years.

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Any advice?

Hi - I am in a similar situation and was wondering if you ever heard from anyone? I contacted the CA after nearly 5 years, having discovered I have a outstanding bill. The date of last activity was correctly listed earlier and now they have removed the debt record from by report. Since it is unlikely that they will negotiate, I suspect they will only relist the debt on my record with a current date...which will extend the SOL for another 7 year! Does that make sense and has anyone seen that occur?

-nk

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