Credit Cards

2 unpaid collections

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  • May 3rd, 2021 4:02 pm
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[OP]
Newbie
Jan 24, 2021
11 posts
5 upvotes

2 unpaid collections

I have 2 unpaid collections and the DOLAs are 2016/09 and 2016/11 respectively, they are payday loans. Everything else I had in collections has been disputed off/or paid in full.

I had 3 credit cards all under 30% utilization.

What is the best way to handle these collections? Pay them and risk them sitting for another 6 years?
14 replies
Newbie
Jan 19, 2020
77 posts
43 upvotes
Paying a charged-off or collections account does not reset the timer. The date of last payment will not change with payment. You still have a good 1.5 years left before they fall off your credit reports. The presence of unpaid collections could be problematic for anything that requires a credit check. While these accounts will fall off your credit report, that does not mean the debt does not exist. What is stopping collection agencies from digging up old debt and reporting it again? Or selling it to another agency? If you have the means to pay them off, it would probably be a good idea.
[OP]
Newbie
Jan 24, 2021
11 posts
5 upvotes
Thank you for your response!
Perfect I just wanted to confirm that.
kiptonlipton wrote: Paying a charged-off or collections account does not reset the timer. The date of last payment will not change with payment. You still have a good 1.5 years left before they fall off your credit reports. The presence of unpaid collections could be problematic for anything that requires a credit check. While these accounts will fall off your credit report, that does not mean the debt does not exist. What is stopping collection agencies from digging up old debt and reporting it again? Or selling it to another agency? If you have the means to pay them off, it would probably be a good idea.
Jr. Member
Jul 18, 2018
192 posts
206 upvotes
If he does pay the collection won’t it reset the time, the removal from the credit file. I think it’s 6 years from the date of last activity.
Deal Fanatic
Dec 16, 2005
5732 posts
3814 upvotes
op you should not rely on someone from an internet forum. I'm no expert but I also believe any payment would reset the clock. You're only 1.5 years away from it falling off. The damage is already done. What's the point in paying it off now?
Also remember there is a statute of limitations so the creditor can't come after you legally (ie garnish your pay, sue for damages, etc.). They can harass you about paying your debt but that's it. And your response should be "what debt?" or better yet just dodge their calls. read up on the statute of limitations on debt because if you make any payment or you admit to owing the debt, the clock resets.
Deal Fanatic
User avatar
Aug 24, 2016
8411 posts
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The Prairies
Ash177 wrote: If he does pay the collection won’t it reset the time, the removal from the credit file. I think it’s 6 years from the date of last activity.
Date of last activity does not apply to collection accounts.
If this were a credit account, and OP made a payment to the original creditor, then yes, it would restart the clock.
But once the debt is sold to a collection agency, the clock cannot be reset.
[OP]
Newbie
Jan 24, 2021
11 posts
5 upvotes
Thank you for the clarification!
coolintheshade wrote: Date of last activity does not apply to collection accounts.
If this were a credit account, and OP made a payment to the original creditor, then yes, it would restart the clock.
But once the debt is sold to a collection agency, the clock cannot be reset.
Newbie
User avatar
Nov 6, 2019
40 posts
28 upvotes
clintonsspliff wrote: I have 2 unpaid collections and the DOLAs are 2016/09 and 2016/11 respectively, they are payday loans. Everything else I had in collections has been disputed off/or paid in full.

I had 3 credit cards all under 30% utilization.

What is the best way to handle these collections? Pay them and risk them sitting for another 6 years?
Take it from me: NEVER, EVER pay collections (unless it's an old student loan where the provincial portion statute is never-ending, as with Ontario). I know my stuff here - make the statute run out and dispute with both bureaus if it has and the collections are still on your credit bureau files. Avoid the phone calls, block them and do the time, so to speak. It's just smart business. Don't EVER give them the open door to re-start the clock.

---> Why you should NEVER pay collections

You were warned. Winking Face P.S. - Keep each card under 10% utilization (or even lower, just not 0%) to really up your scores over time. I say this ALL from experience as someone who went through all of this and re-built my credit to the 700's (and rising).
Deal Fanatic
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Aug 24, 2016
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soulfulemotion76 wrote: Take it from me: NEVER, EVER pay collections (unless it's an old student loan where the provincial portion statute is never-ending, as with Ontario). I know my stuff here - make the statute run out and dispute with both bureaus if it has and the collections are still on your credit bureau files. Avoid the phone calls, block them and do the time, so to speak. It's just smart business. Don't EVER give them the open door to re-start the clock.

---> Why you should NEVER pay collections

You were warned. Winking Face P.S. - Keep each card under 10% utilization (or even lower, just not 0%) to really up your scores over time. I say this ALL from experience as someone who went through all of this and re-built my credit to the 700's (and rising).
You need to stop reading and listening to US credit material, as Canada is different in most every way.
Collections can indeed post the debt on credit bureaus after the SOL!
SOL is only a set period of time a collector or original creditor can sue you.
The debt can and will stay on your credit for up to 7 years after the date of default.
Telling someone to never ever pay collections is like telling someone to never ever pay their bills because there’s an easier way out.
Maybe that’s how you sailed through life up until now, and maybe you actually sleep good at night, but some people in this world still have morals.
Newbie
User avatar
Nov 6, 2019
40 posts
28 upvotes
coolintheshade wrote: You need to stop reading and listening to US credit material, as Canada is different in most every way.
Collections can indeed post the debt on credit bureaus after the SOL!
SOL is only a set period of time a collector or original creditor can sue you.
The debt can and will stay on your credit for up to 7 years after the date of default.
Telling someone to never ever pay collections is like telling someone to never ever pay their bills because there’s an easier way out.
Maybe that’s how you sailed through life up until now, and maybe you actually sleep good at night, but some people in this world still have morals.
ANY collections posted 6 or 7 years (depending on each bureau's rules/provincial/federal laws) after the SOL *MUST BE DELETED* as they are not accurate anymore (except a bankruptcy or provincial portion of a defaulted student loan, depending on your province's laws). You can easily dispute this with each bureau and have them removed. Yes, there are differences between the U.S. and Canada, but I have lived this through experience. It's just called being smart. Judge as you will, but there's a way to be smart and not screw yourself if you made a past mistake or fell on hard times. No sense making it harder on yourself. That's called being an idiot financially. It is what it is. I offered my first-hand experience to help the person. I could give two craps about your moral judgments. Darwin, my friend.

Anyway, this person will learn on their own and this will all help them forge their own path. Onward! Be smart, my friends. DO YOUR HOMEWORK and screw what other "moral judges" think. The name of the game these days is smart business that knows the loopholes to these rules, so to speak. No one makes it easy, so you need to be smart and do your due diligence like politicians do.
[OP]
Newbie
Jan 24, 2021
11 posts
5 upvotes
Paid 1 in full, it was reported closed and 0 the next day
Settled 2, paid in full status, haven’t updated yet but will see Monday or Tuesday.

Let’s see how the score improves :)
Deal Guru
Dec 5, 2006
10292 posts
5363 upvotes
Markham
clintonsspliff wrote: Paid 1 in full, it was reported closed and 0 the next day
Settled 2, paid in full status, haven’t updated yet but will see Monday or Tuesday.

Let’s see how the score improves :)
Good job

Hopefully in the future, you won't need payday loan anymore and in this situation

Good luck!
Deal Fanatic
User avatar
Aug 24, 2016
8411 posts
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The Prairies
clintonsspliff wrote: Paid 1 in full, it was reported closed and 0 the next day
Settled 2, paid in full status, haven’t updated yet but will see Monday or Tuesday.

Let’s see how the score improves :)
Your score won’t improve right away, because the debts are still on the report.
But now they’re paid, so you’re more likely to be approved for credit now than when they were unpaid.
You won’t see any meaningful score movements until those baddies drop off.
Jr. Member
Dec 31, 2011
184 posts
202 upvotes
ETOBICOKE
The big question is.. the one that shows paid in full, did they or not reset your date of last activity? Thanks
[OP]
Newbie
Jan 24, 2021
11 posts
5 upvotes
dan2011 wrote: The big question is.. the one that shows paid in full, did they or not reset your date of last activity? Thanks
The capital one I paid directly to capital one, shows paid, and updated the last payment, but is still set to fall off December 1st 2021

Metcredit shows paid, and is in closed accounts as well.

The other two haven’t updated but I’m assuming will say settled in full.

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