Once an account is purged from a Credit Report, be it a "Tradeline" or a "Collection Account", it's like "water over the dam". Gone forever, never to return again.

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Educating one Consumer at a time

Hi footloose,

Though I am pretty sure I know the answer to this I wouldnt mind clarifying. If he was to wait to pay off that debt until it was purged off his bureau (because they could still harrass him though not enforce a collection via judgment). Would it stay off of his bureau or would they have rights to put it back on if he paid it?

Thanks.

Dryfter

Thank you very much footloose.

I believe, that is exactly what happened with the account
Again, i thank you for all you help in explaining the situation correctly and providing me with sound advice.

I believe that i would wait it out for the account to be purged.
In the meantime, i would get my recent credit score from both equifax and transunion and see where i stand.

thank again..

Thank you very much for the information that you supplied. In many cases, information showing on a credit report is incorrectly reported, thereby making it difficult for an uninformed consumer to properly interpret the information

Based on your response, here is what I think has happened. This debt was "written off" in June 2006 by the original creditor. After this date, the debt was sold, not assigned, to Aktiv Kapital. Aktiv Kapital is a debt buyer, therefore, they would have purchased the debt. For reporting purposes, Equifax shows all debts whether they are assigned or sold as "date assigned". Aktiv Kapital did not report this assign date to Equifax. In August 2007, you made a payment on this account and sent your payment to the original creditor. Because this debt was sold to Aktiv Kapital, these monies were transferred to Aktiv Kapital because they were the new owners of your debt. This information was not reported to Equifax. In April 2008, Aktiv Kapital reported this payment to Equifax and Equifax showed this reporting date as the "date assigned" in error. Chronologically, the "date assigned" should have preceded the "date of last payment". Because this debt was not reported to Equifax when Aktiv Kapital purchased it and then Equifax reported it as "date assigned" when Aktiv Kapital first reported the payment to Equifax, this has caused all the confusion. Aktiv Kapital is well known for sloppy and late reporting of information in the credit industry.

This debt as reported under Credit Information and more commonly referred to as a "Tradeline" will purge from your credit report 6 years from the "date of last activity". The account as shown under "Collection Accounts" will purge from your credit report 6 years from the "date of last activity. which, so far is the "date of last payment" i.e. August 2007. If you make a payment on this collection account, that will extend the purge date. For example, if you paid off this account in February 2011, this debt would purge under "Collection Accounts" in February 2017.

PLEASE NOTE By making a total payment on this account will NOT remove it from your credit report. It will only show as "paid by debtor" and will remain on your credit report until February 2017.

You might want to give some consideration to NOT making any further payments on this account. The debt is statute-barred ( in Quebec, the limitation period is 3 years ). By not making any further payments, the purge date will not be extended. Something to think about.

Because this account was "written off" by the original creditor, it now carries a R9 rating, which is the worst rating that you can have. Depending on your credit score before the debt was "written off", this R9 rating could drop your credit score from 50 to 80 points.

If my assumptions are incorrect or you have more information to report, please report it on this site

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Educating one Consumer at a time.

Thank you all for the replies,

Footloose, please see below the information you asked for:

The same credit card account appears under two sections:
1-Credit Information
2-Collection Accounts

The "date of last activity" shows under "Credit Information" section only
- The status of the account is : Bad debt, collection account, written off

The "date of last payment" shows under "Collection Accounts" section only
- The collection agency is AKTIV KAPITAL
- The date assigned is 2008 - 04
- No payments were made on this accounts after it had been assigned to the collection agency
- There are no comments

thanks again for your help

Much appreciated..

You can't have a "date of last payment" follow a "date of last activity". There is a missing link here because this makes no sense.

I need answers to the following questions.

1. Name of creditor shown under "Tradelines" with "date of last activity" Does it also show "date of last payment"?

2. Was this debt assigned to a collection agency or sold to a debt buyer? Who is the collection agency/debt buyer? When did this event take place?

3. Does this debt show as a collection account under "Public Records"? Were any payments made on this debt AFTER it was assigned/sold? If so, what are the payment dates? What comments, if any, are shown on this debt listed under "Collection Accounts"?

If you can supply answers to these questions, this will give me a better idea of what's happening.

The tradeline will stay with you whether or not you pay it off. Since the date of last activity is on 06-2006, it means for another 1.5 yrs it is going to fall off from your credit report.

My suggestion is that if you can wait for another 1.5 yrs to get a mortgage, by all mean just wait. On 06-2012 your credit report will be perfect like nothing happened before, if it is really the only item on your report.

Hi,

I am really hoping that someone could help me out with a sound advise here. I am really trying to fix my credit.

Essentially,

I have an old credit card debt in collection.

This is the only negative record on my credit report.

In my EQIFAX report it shows as:

Date of last activity: 2006 - 06
Date of last payment 2007 - 08

The amount is $677

First: Would the record from the credit report taken off 6 years from the date of last activity? or the date of last payment?

Second, if i pay it off, would it help my cause or actually renew the date of last activity and take another 6 years from that date to be taken off my credit report?

Third, how badly is this collection record affecting my credit score?

I would really like to know how to go about this. I went through some hard time as a student in university. Now i am in a good position to get a mortgage (based on savings and salary) but afraid that this bad collection account would reduce my chances of moving forward.

Any sound help would be greatly appreciated.

thank you..