Credit collection past two years

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  • #65863
    Khali
    Member

    I went to my first workshop and meeting in October 2019. I have a collection on my credit report from a cable company that’s $556, and is from February 2018. My MC said in October that I need to either pay it or show that it’s more than two years old before I come back March 6. My question is since technically by the time I go back the collection will be over two years old, should I pay it or just show that the collection is more than two years old?

    #65864
    Nelsont
    Member

    Pay it.

    The rule is not when the collection shows up (February) it’s from when the last activity occurred. You can have a collection from 5 years ago. If the collection is reported every month it’s considered current.

    Any time you pay collections you will always better yourself. There is a small chance not paying it will be OK. There is a 100% chance paying it will improve your situation.

    Emergency medical expenses are just about the only type of bill you can expect naca to be ok with not paying if it is not “old” or it will prevent you from saving/making rent etc.

    • This reply was modified 9 months, 1 week ago by Nelsont.
    #65867

    @Nelsont that is conflicting with what my counselor told me at my intake appointment. I also had a cable bill in collections that began reporting in February 2018 (funny that its the same date as OPs) and it is reporting every month on my credit report. My intake was in January and my counselor said not to worry about it since by the time my file was submitted for qualification (hopefully in April) the collection will be over 2 years old.

    I really hope that my counselor wasn’t wrong, she’s been with NACA for some time and seems to know what she’s talking about in general (she also happens to be the one that gives my local workshop presentations).

    @khali I would hold off on paying it and get further clarification, especially if paying it is going to cause financial strain.

    #65868
    Nelsont
    Member

    Interesting…yes let us know what comes of it all.

    BTW reporting every month doesn’t mean shows up. It means actively sending bills and phone calls. I had a repossession and foreclosure 5 years prior to naca. The repossession showed I still owed on the car and my report said I missed every month since. But they stopped trying to collect so it was OK.

    #65869
    Khali
    Member

    @nelsont on my list of things I needed to do on my last meeting, it says I can show proof the collection is more than two years old, so how would 5 years matter? I do plan on paying it, but if it’s not going to affect me then I’ll pay it later. I just don’t see why it would say if it’s more than two years old don’t worry about it.


    @tattedqueen87
    I tried calling my MC and left a message for him. Hopefully I’ll have clarification by today and I’ll let you know!

    #65871
    Nelsont
    Member

    Well it wouldn’t say that. They just need proof there is a reason you have been neglecting it. In my case with my foreclosure and repossession I had to provide proof of transfer of ownership to show I am no longer obligated to make the payments shown on my collections that were 5 years old at the time.

    And if it is old it may not affect. The thing is at the 2 year point you will run into questions about it at every step along the way until the day you close on your house. Each time the questions will be the same as the last and each time they will ask for the same proof. IF you pay it off you will only have to deal with it once. It’s up to you. It shouldn’t be a big deal either way. Just one way will be a smoother, quicker process. The other way will work but make you think the right hand doesn’t know what the left hand is doing.

    #65878
    mrstaylor
    Member

    I was just about to ask a similar question to this I’m glad there’s already a recent thread. During my intake when we got our action plan and were told we had to pay two items that were over two years AND medical collections. I have one that will be two years old in May and we won’t be qualified by then (thank you student loans!) so should I just write an LOE? It’s also a medical collection, I was actually surprised when he told us we would have to pay those because the workbook makes it seem otherwise.

    #65880
    Nelsont
    Member

    There is no situation where they say don’t pay. I think the default is always pay. There are situations in which you can be granted an excuse from paying and medical bills often, though not always, fit into that category.

    #65882
    mrstaylor
    Member

    Well since I’ve got quite a bit of time until qualification I think I’ll get documents showing it’s medical and over two years old and ask my MC if that’ll be good.

    #65938

    How do you show that an account is over 2 years old? I found an old collection notice from 2018 from an account that has I am anticipating will pop up on my report once I begin this process. Typically I would assume that showing this old account on a previous credit report would prove that it is over 2 years old, however, I don’t have that old report. I only have the old collections letter dated 1/2018. Will this suffice as proof?

    #65941
    Nelsont
    Member

    You will be asked to pay $13 via electronic check (go to your bank’s website and write down the routing number) at your intake in order for your MC to pull your tri merge credit report and analyze it in front of you. They will let you know. Usually it’s about when they stop reporting not when it was from. In the meantime don’t leave anything at home take everything with you.

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