Personal Finance

Collection Account - Need a clear answer from Report please help!

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  • Mar 1st, 2015 9:45 am
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Newbie
Jan 20, 2015
10 posts
6 upvotes
Calgary, AB

Collection Account - Need a clear answer from Report please help!

I have a collection account that is reporting on my file from a charged-off credit card. It has dropped from my listed accounts on both my Equifax and Transunion but remains on my collections tab . I have a few questions of which I cannot get a clear answer on from both Equifax/Tranunion reps and other forums. The original debt was for 1800.
  • Equifax: Date Assigned Sep 2010, Last Payment Aug 2010 (I made no payment, perhaps I answered a call) And it just shows the Balance of 4900
  • Transunion: Opened Sep 2010, Reported February 2015 (It lists the Balance here 4900)
  • The account is still reporting every month with in an increasing balance (is this allowed?)
  • If I pay this balance off now even though it is set to expire next year based on my Equifax date of last payment. Will it reset the 6 years for it to purge or fall of at that time. (This is what a Transunion rep said that it would fall off then even if I pay it now no reset, Equifax guy gave a bunch of mumbo jumbo)
  • If I do not pay it will it purge and remain purged or can it be reposted or continued to be reported after such expiration date. Equifax said they can if the Balance is not zero, so did Transunion is this true? But they were not confident and I seem to get different answers from everyone.
  • I've read others people stories about just letting it fall off did they have their balances at zero? Were they misinformed? Am I misinformed. I just need a straight answer morally correct or not, I just want to better my credit.
Can anyone please shed some light or provide me with any guidence? I would be very greatful. Thanks!
3 replies
Deal Addict
Jan 2, 2015
1633 posts
639 upvotes
Toronto, ON
wheredoicorrect wrote: I have a collection account that is reporting on my file from a charged-off credit card. It has dropped from my listed accounts on both my Equifax and Transunion but remains on my collections tab . I have a few questions of which I cannot get a clear answer on from both Equifax/Tranunion reps and other forums. The original debt was for 1800.
  • Equifax: Date Assigned Sep 2010, Last Payment Aug 2010 (I made no payment, perhaps I answered a call) And it just shows the Balance of 4900
  • Transunion: Opened Sep 2010, Reported February 2015 (It lists the Balance here 4900)
It'll fall off in six or seven years from August or September 2010 (so 2016-17, exact time depends on province). It seems right, but I'm surprised the creditor/collections agency didn't tell Transunion about this until Feb 2015 (now).

Edit: Apparently it's only 2 years in Alberta.
[*]The account is still reporting every month with in an increasing balance (is this allowed?)
Yes. Why wouldn't it be? The credit card has an interest rate that compounds daily and is reported monthly. Canceling the card simply means you're not allowed to use it. Of course, it's irrelevant if the SoL has already passed.
[*]If I pay this balance off now even though it is set to expire next year based on my Equifax date of last payment. Will it reset the 6 years for it to purge or fall of at that time. (This is what a Transunion rep said that it would fall off then even if I pay it now no reset, Equifax guy gave a bunch of mumbo jumbo)
Check the long collections thread, but I think this resets. If so, it's not an incentive to pay back. You'd think the law would encourage repayments. (That thread needs an FAQ, along with clearly marked "points of controversy".) And no, I'm not sure if this means it'll remain off in 2016/17 anyway if you pay the balance to zero.
[*]If I do not pay it will it purge and remain purged or can it be reposted or continued to be reported after such expiration date. Equifax said they can if the Balance is not zero, so did Transunion is this true? But they were not confident and I seem to get different answers from everyone.
It's supposed to fall off the reports entirely and permanently once the statute of limitations has passed. I think collections agencies can call you after (until you ban them) but there's no requirement to pay once the SoL has passed. Edit: Given the info in the following post, since the SoL may have passed, you should complain to both credit agencies.
Member
User avatar
Aug 4, 2014
491 posts
53 upvotes
North of GTA
wheredoicorrect wrote: I have a collection account that is reporting on my file from a charged-off credit card. It has dropped from my listed accounts on both my Equifax and Transunion but remains on my collections tab . I have a few questions of which I cannot get a clear answer on from both Equifax/Tranunion reps and other forums. The original debt was for 1800.
  • Equifax: Date Assigned Sep 2010, Last Payment Aug 2010 (I made no payment, perhaps I answered a call) And it just shows the Balance of 4900
  • Transunion: Opened Sep 2010, Reported February 2015 (It lists the Balance here 4900)
  • The account is still reporting every month with in an increasing balance (is this allowed?)
  • If I pay this balance off now even though it is set to expire next year based on my Equifax date of last payment. Will it reset the 6 years for it to purge or fall of at that time. (This is what a Transunion rep said that it would fall off then even if I pay it now no reset, Equifax guy gave a bunch of mumbo jumbo)
  • If I do not pay it will it purge and remain purged or can it be reposted or continued to be reported after such expiration date. Equifax said they can if the Balance is not zero, so did Transunion is this true? But they were not confident and I seem to get different answers from everyone.
  • I've read others people stories about just letting it fall off did they have their balances at zero? Were they misinformed? Am I misinformed. I just need a straight answer morally correct or not, I just want to better my credit.
Can anyone please shed some light or provide me with any guidence? I would be very greatful. Thanks!
http://credit-collections.ca/statute-of ... ada-debts/

The statute of limitations in Alberta is two years. If you settle or pay off this debt, it will not get be purged off your credit report until 2016 or 2017. A note would be added that you settled or paid it off. If I was you, I would be patient and let it purge.

Collection agencies can harass you for the money for zombie debt. If that happens, there are ways to fight them legally to stop them. You can send them a cease and desist letter. You can also report them to your provincial government and get help from your local BBB.
Info on collection agencies, check out The Wolf at the Door by Mark Silverthorn. The Statute of Limitations (SOL) is 2 years in Ontario for unsecured debt.
Derogatory lines are purged after 6 years on Equifax / Transunion. 1 in 10000 unsecured debts are litigated. They don't usually sue.

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