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Posted in Auto Loans
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Question By
jiiiiiiiimmmm

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should old loans be removed?
Should a 9 year old auto loan that was charged off still be on my credit?

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generally 7.5 years

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Has there been contact between you and the creditor.  If there has, the "clock"  is reset to 7 years from the time of last contact.  

Don't let the name fool you. You're still responsible for paying a charge off.  As long as the charge-off remains unpaid, the creditor can continue attempts to collect on the account and that may include suing you for what you owe.

To remove a charge-off, you should contact the original creditor. You want to convince the creditor to remove the charge-off from your credit report in exchange for payment. Before you make the call, know how much you’re able to pay on the account. The more you can pay and the sooner you can pay it, the more negotiating power you have. Ask to speak to someone who has the authority to remove the charge-off from your credit report. Otherwise, you face the risk of getting told “no” by someone who couldn’t say “yes” if they wanted to.

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Reply by
roy2ohio

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EddyTX's response is correct, but be careful here!

The 7-year clock starts based on the last report date of that loan.  If you took the loan out in 2004 and it was charged off in 2006 or 2007, then it is past the 7-years statute of limitations.  This line of credit should have been dropped off your credit report or, you can dispute it and have it removed.

If you took the loan out in 2004 and activity was still being reported on it March 2009, then it has not exceeded the 7-year statute of limitations and cannot be removed.

Once the 7-year statute of limitations has passed, the creditor cannot pursue you legally.  But like EddyTX stated, it does not relieve you of the moral obligation of paying.

But, being morally responsible may cost you in the long run.  If you acknowledge the loan, even past the statute of limitations, the 7-year clock starts all over again.  At this point, the creditor can take legal action.  This is why collection agencies press you into making some sort of payment.  Even if you send in a dollar, you are acknowledging the debt, and they will own you for the next 7-years.

Again, like EddyTX stated, you are still morally obligated for that debt and it never goes away.  Collection agencies, despite the fact they can't take legal action, can haunt you for decades. 

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