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Question By
coconut72

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Should i remove a POA for an old debt?
I hope someone can help answer my question regarding an old account I have with Capital 1. Back in 2008 I had an account with Cap1 that went into collections; I had been laid off in 2007 and the job market was not that great so I wound up on unemployment for 6 months and finally took a lower paying job; needless to say, I was not able to keep up with my debt. Starting in 2011 I started paying off other old debts and got most of them taken care of, but I left the Cap1 account alone since it was more than I could pay at one time (around $3k). In 2012 I opened a couple of credit cards with Orchard Bank and HSBC (credit rebuilder accounts), this was great as it allowed me to start rebuilding my credit; those accounts were subsequently taken over by Cap1 and Citibank respectively. In 2012 I started working with a credit repair company that did a lot of work to get old and harmful information off my credit report, even some of the accounts that were in collections. However, the old 2008 Cap1 account would not work with them unless they had Power of Attorney; I did sign the POA to the credit repair company and they began negotiations with Cap1. After a couple of months they were not able to negotiate anything of value so they recommended that I wait out the account as it was past the 4 year SOL for collection and it would fall off my credit report in a couple of years. I felt like a DB for that, but as I couldn’t pay the full amount and they were not willing to work on a payment plan, I did as recommended.



So now the account that I originally opened with Orchard Bank was converted into a Cap1 Platinum Card about 2 years ago, it has a high APR and annual fee; but I’ve had an excellent payment history, never gone over the limit, and kept the utilization low.



I had to call into CS not too long ago for another reason and I was told that I could only speak to a supervisor about my account because I still have a POA on file.



So here is my question; if I remove the POA can Cap1 try to collect on the old 2008 account? I don’t think they can since the SOL has past, but I have heard from others that by speaking to the creditor about an old account it will reset the SOL. Since I have a current account with them, I’m not sure how to proceed with this. But leaving the POA on file allows the credit repair company access to my old account, but not sure if they could access my current account info.



Reason for all of this is that now that my credit scores are in the mid-700s, I am looking to convert the account over to a Venture or Quicksilver account. I don’t want to ruin any of the progress I’ve made to raise my credit scores.



Thanks for any help/advice you can provide.

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Absolutely, remove the POA. I would never let some credit repair company have something like this. Nothing resets the credit reporting time period and the only thing that could reset the Statute of Limitations to be sued for the debt was if you entered into a payment plan and failed to make payments. If this account went into collection in 2008, then it should be eligible to be removed right now by either being at the 7 year mark or asking for an "Early Exclusion" on the account from the credit bureaus.

Reply by
coconut72

7 Contributions
92 People Helped

Great, thank you. Yes, the old account is off all 3 credit bureaus already. I checked the old POA and it was only valid for 6 months, so it has expired, but looks like Cap1 hasn't updated their records. Thanks again for the insight.

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