I just admitted some debt settlement companies will place an R7 in your credit file, not the creditor there is a difference. How would I have characters issues when I am telling a member that they should still settle their debt even if its past it's limation.If anyone has low moral character is yourself, telling a member to ignore the debt and move on with life. If you want to provide smart advice next time, tell the member to settle their debt even if it’s past it limitation. The creditor was good enough to lend us the money in the first place and if you can not afford to pay back the full amount because of certain circumstances, at least settle the debt instead of not giving anything.

I don't appreciate your comments about my character. You have no idea who I am or what my situation is. The worst marks on my credit report were a few late payments and a bogus collections item that have all since been removed. You're the one who had to settle his debts, not me. Twenty of them, no less. Sounds like you're the one with the character issues.

You just admitted that creditors will likely report an R7 with a consumer proposal. The average person is not capable of doing their own debt settlement, and it is highly ill-advised to do so in the event that you make a mistake and end up paying thousands of dollars with no effect. I am not telling anyone that it is a good idea to run away from their debts. I just provided the smartest advice for the original poster's credit and you decided to suggest that I'm of low moral character.

Good one. I think it's pretty clear to anyone reading this post who the real deadbeat is.

When it came to settling my debts it was no luck, I am a good negotiator. I have settled twenty debts so far and the average on each debt was 11.55%. If you hire a debt settlement company, some will report an R7 in your credit file. In my case I did all the work myself. When I negotiated my debts; I had the creditor state in the letter not to change the debt of last activity in my credit file.

The advice you’re giving people not to settle their debts after the statue of limitation has passed speaks volumes about your character. In time, if you stick around this site you will find members will not be impressed on the advice you’re giving them. The amount of debt I had, it would have been easy to file for bankruptcy but instead; I negotiated settlements with the creditors and someday they will do business with me again. If they take your approach the creditor will never do business with you again.

You must have been extremely lucky then that none of your debt settlements have ever shown up on your credit report as an R7 then, because I can promise you that this is what will happen.

The day you settle your debt, you are acknowledging its existence and the fact that you didn't pay it. Now you've done it. The original creditor is free to report this to Equifax/TU again, so you might as well have just defaulted on a new credit card. This would show up as a new entry on your credit report effective the day the agreement was made.

I'm not sure why you are arguing about this when it is clear you don't have any idea what you are talking about. Telling someone to settle a debt that has long since passed its legal collectibility because it is the "right thing to do" is horrible advice if you are trying to provide readers with tips on credit repair. Taking the chance that the creditor will make a mistake and not report a consumer proposal on your credit report is insane. They are well within their rights to do so, and I can guarantee you that. I know first hand how weaselly collection agencies are and I find it incredibly hard to believe someone here is actually encouraging cooperation with them.

So, back on topic, the original poster is faced with two decisions: Pay hundreds of dollars, roll the dice with their credit, and maybe feel like they've done a good deed. Or simply forget about it and get on with their life. Seems like a pretty easy choice to me.

Rickstar,

In your post you stated; that you are almost certain the item could get placed back on their credit file, which means to me that you are not a 100% sure. I know for a fact since I have settled twenty of my own debts, their item will not be placed back on by law.

How long does Equifax keep information in my credit file?

CREDIT INQUIRIES TO THE FILE: An Inquiry made by a Creditor will automatically purge three (3) years from the date of the inquiry. The system will keep a minimum of five (5) inquiries.

CREDIT HISTORY AND BANKING INFORMATION: A credit transaction will automatically purge from the system six (6) years from the date of last activity.

All banking information (checking or saving account) will automatically purge from the system six (6) years from the date of registration.

VOLUNTARY DEPOSIT - ORDERLY PAYMENT OF DEBTS, CREDIT COUNSELING: When voluntary deposit – OPD – credit counseling is paid, it will automatically purge from the system three (3) years from the date paid.

REGISTERED CONSUMER PROPOSAL: When a registered consumer proposal is paid, it will automatically purge three (3) years from the date paid.

BANKRUPTCY: A bankruptcy automatically purges six (6) years from the date of discharge in the case of a single bankruptcy. If the consumer declares several bankruptcies, the system will keep each bankruptcy for fourteen (14) years from the date of each discharge. All accounts included in a bankruptcy remain on file indicating “included in bankruptcy” and will purge six (6) years from the date of last activity.

JUDGMENTS, SEIZURE OF MOVABLE/IMMOVABLE, GARNISHMENT OF WAGES: The above will automatically purge from the system six (6) years from the date filed.

COLLECTION ACCOUNTS: A collection account under public records will automatically purge from the system six (6) years from the date of last activity.

SECURED LOANS: A secured loan will automatically purge from the system six (6) years from the date filed.

(Exception: P.E.I. Public Records: seven (7) to ten (10) years.)

With all due respect, I really think the advice you are giving here is not in this person's best interest. I disagree with the statement that the item won't be placed on their credit report; in fact I'm almost certain that it would, with an effective date of October 2009 which would suggest that this is going to haunt them for at least another 6 years. This was for something that happened 12 years ago!

I don't condone being a deadbeat or anyone eluding the law. If you don't pay your bills, you don't deserve a good credit rating. However, if you realize the mistakes you've made and are making an effort to clean up your act, why on Earth would you punish yourself again with another 6 (or more!) years of damaged credit by risking a consumer proposal showing up on your credit report?

Remember that banks tend to frown on items like these if/when you decide to try and get a mortgage, regardless of what your credit score is.

Rickstarr,

The purpose of the forum is to help people settle their debts and not become deadbeats by eluding the law. If naya514 decided to settle the debt; the item could not be placed back on their file by law. I believe naya514 should settle their debt, even if they only can afford 10%.

You've done your time, so to speak. They have no legal recourse at all in terms of collecting this debt as the SOL has long since passed. Any settling is a bad idea, as any activity on the debt will revive the SOL, and a settlement showing up on your credit report will do you way more harm than the warm, fuzzy feeling of knowing you paid off the debt will bring you.

My advice to you is to request ARO in writing to cease contacting you with regards to this debt and forget that it ever existed. Just make sure you don't get yourself in the same situation again! :)

There is two ways to go about it. If you want to avoid them and do not wish to pay them, there is nothing they can do. The other option is, offer them $1000.00 in a one time lump sum to settle. If they decided to accept, make sure you get a settlement agreement faxed to you, before you hand over your money.

I received a call the other day from ARO telling me that I owed $3300 from a credit card back in 1997. I did have this card, and was going through some rough times, and didn't pay he bill, the limit was $1000. This is the first time I'm hearing from any collection agency about this, and she's telling me that she'll reduce the amount to $2300, and I need to call her back in 48 hours or she will put an inquiry on my credit report.

I know this account is way passed the SOL, is there any harm that they can do to my credit? Which is good now, I have a credit card. I realize that this is a debt I incurred and would like it settled, but I think $2300 is redicilious.

And someone please give me some advice on how to handle this situation please? I live in Montreal.