Credit Card Bad Debt

Its been over a year since Ive been able to make any type of payment on them. Also, they all been turned into collection agencies. I know I will have to build up my credit again. I was just wondering if the cards I have will be turned back on again, or will I have to start fresh ? Also, lets say I was able to pay off all my bad debt tomorrow, will my credit report be cleared of all the bad things ?

Creditors can either enlist collection agencies to recover debt on their behalf, or they can sell your debt to the collection agency. If it is the latter, then the account is closed. If it is the former, the account is probably "active", but there may be a block on it. For example, when I worked in the library, we used an outside collection agency to collect on library fines over $50. The library card is blocked. Only until they pay off their balance will we allow them to use the card again. (The books are assets of the City....a library card is like a credit card in which you're borrowing property.)

Your credit report will show that your collection accounts have been closed. They'll still show up on your credit report, so your credit will be ruined until you are able to repair it (through time and more responsible care of your credit).

Even if your accounts are still active, you will be paying high interest rates because you defaulted, which allows them to charge the regular rate. You might want to start anew, so that you have a better interest rate and your limit will be much lower, allowing you to maintain control of your credit.

2008-06-22 23:09:07 by shryock86

The national debt is making highs it hasn't seen in a long time. In fact, higher than we have ever seen. The amount of people whom owe to ...

Since there are a lot of people with bad credit nowadays, do you think they will put pressure on credit card companies to help people with debt or bad credit?

They can if they pass the Credit Cardholders' Bill of Rights Act of 2008 which was passed by the House and awaiting a vote in congress.
This proposed act amends the Truth in Lending Act to prohibit a creditor from using certain adverse information, including information in a consumer report or any change in a consumer's credit score, as the basis for increasing any annual percentage rate (APR) of interest on the consumer's outstanding balance.
Restricts the frequency of over-the-limit fees.

This bill also prevents many other unfair practices as seen in the past months.

You can see who and how they voted at the following web site
http://www.govtrack.us/congress/vote.xpd ?vote=h2008-623

Hope this helps answer your question

NOTE: paying off the balance in full every month will not always improve ones score, just read what FICO has to say regarding this. If you pay it off in full and do not use the card then it is OK, but if you use the card every month, then you will still show a ballance owed. The creditor only reports the ballance owed at the date of the statement and that you paid on time, NOT that you paid in full. Check this out from the FICO link
http://myfico.custhelp.com/cgi-bin/myfic o.cfg/php/enduser/std_adp.php?p_faqid=16 6

2009-04-15 08:16:54 by Qwerty

I was one of those dumb 18 year olds who accepted every credit card offer that came in the mail. I have all paid off now accept one. It went to collections in 2002 and was recently sold to another collection agency. I understand that after 7 years your debt is sopposed to go off your credit report. Now that this debt was sold does the 7 years start over or will my 7 years be over next year?

The 7 year reporting period begins from the date of delinquency. NOTHING can reset this 7 year clock. If you missed a payment on 1/1/2000 and never brought the account current, the negative mark must be removed 1/1/2007.

If this went to collections in 2002, it will come off your report this year or next, depending on when you actually became delinquent.

2008-03-08 15:14:46 by jaxons mommy

Price: $24.99

I was contacted by collection agency an account that was charged off 8 years ago. They said they bought that debt and are reporting it on my credit.

I asked for written records with my signature to ensure that it was a real account that I opened. They said that it had been validated by the orginal credit card company, but they could not supply any records with my signature.

Can I have that removed if there are no records with signatures showing that I ever opened that account?

Since it is a credit card debt and it was charged off 8 years ago, the collection agency is violating your rights by reporting it.

A credit card can only be reported for 7 years from the first time you became 30 days late and never brought the account current leading to the charge off. It cannot be re-aged to report for a longer period.

I would suggest doing "everything" in writing and sent certified mail return receipt - create a paper trail to use should you decide to sue the collection agency.

Order your paid reports.
Send the collection agency a debt validation letter. Do not sign the letter, print your initials or type your name.
When you get the green card back, file disputes with the CRA's.

If the account is verified instead of being removed, file complaints with the BBB, FTC, your AG and the collection agencies AG.

If the account remains, sue the collector for their violations.

Chances are pretty good that you are past the collecting SOL for your state. Though you might click on my profile and click on the link listed to find the SOL for your state.
If you are past the collecting SOL, after you do the above steps, you should send the collector a SOL letter.

You might do some reading in the other links I have listed in my profile, to the FDCPA, FCRA and also the last link listed.

2007-05-30 16:36:56 by bjmarchini

how many years will stay in your credit rating if you miss credit payment in canada Thanks

The bad credit card debt will effect your credit ratings for 7 years from the day it was reported. You caould negotiate with your creditors to remove the late payments from your credit files. I know that for a fact that Royal Bank Visa and Hudsons Bay credit card will not reage your account and remove late payment reports. It also depends whether you were late by 30 or 60 or 90 days. One or two 30 days late payments are not a big factor but 60 and 90 days will effect your score for longer term. If you pay your bills on time for next 2 years then credit rating will increase.

2007-12-12 23:23:10 by Ben T