Debt Settlement - Negotiate or leave run out - advice please. - Canada

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RE: Negotiate or leave run out - advice please.

Postby footloose » Fri Jun 01, 2012 10:21:24 PM

@freedom

If you were a regular reader of my posts, you wouldn't be making these incorrect statements. T.J. has been trying to educate you as to the proper "purge" rules. So once again, I will clarify the situation.

Both Equifax and TransUnion both state that all accounts "purge" 6 years from the "Date of Last Activity". That is technically incorrect.

Both credit bureaus "purge" all accounts containing "Derogatory" information 6 years from the "Original Date of Default with the Original Creditor". Equifax "purges" accounts containing "Non-Derogatory" information 6 years from the "Date of Last Activity". TransUnion "purges" accounts containing "Non-Derogatory" information 20 years from the "Date of Last Activity".

If all accounts only contained "Non-Derogatory" information, the "purge" rules would be simple. But when you introduce accounts with "Derogatory" information such as "defaulted" payments, bankruptcies, consumer proposals, etc., now the "purge " rules start to get complicated. If both Equifax and TransUnion attempted to explain these rules on their website or on their Credit Reports, the public, such as you, would be totally confused. And so, it becomes much easier to state that all accounts "purge" 6 years from the "Date of Last Activity".

All Consumer Reporting Acts in all the Provinces and Territories do not permit a credit reporting agency such as Equifax or TransUnion to report any account with "Derogatory" information beyond 7 years. The policies of both Equifax and TransUnion are that all accounts containing "Derogatory" information are "purged" after 6 years from the "Original Date of Default with the Original Creditor". All Consumer Reporting Acts are "silent" about accounts with "Non-Derogatory" information. Therefore, the policy of Equifax is to "purge" accounts with "Non-Derogatory" information 6 years from the "Date of Last Activity" while the policy of TransUnion is to "purge" accounts with "Non-Derogatory" information 20 years from the "Date of Last Activity".

I trust this explanation of the "purge" rules clarifies the situation.

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Educating one Consumer at a time
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RE: Negotiate or leave run out - advice please.

Postby TJ.brooks » Fri Jun 01, 2012 06:05:57 PM

I believe that person at eqifax is wrong. If its only 6 years after its paid then if its not paid its there for ever.....no way.

You must have spoken with a real flunky there...or the janitor.
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RE: Negotiate or leave run out - advice please.

Postby freedom » Fri Jun 01, 2012 05:56:22 PM

I HOPE you're right - Equifax is terrible to deal with - I asked them to remove some things as they were past the date - (I thought) and they said they would fall off 6 years after they were paid, which like you said - why pay an old debt - if it's only going to stay on your credit for longer than if you leave it alone.....
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RE: Negotiate or leave run out - advice please.

Postby TJ.brooks » Fri Jun 01, 2012 05:51:40 PM

Perhaps footloose could help with the correct answer. If I am mistaken then I sincerely apologise.
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RE: Negotiate or leave run out - advice please.

Postby freedom » Fri Jun 01, 2012 05:48:02 PM

could somebody please tell equifax then.....
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RE: Negotiate or leave run out - advice please.

Postby TJ.brooks » Fri Jun 01, 2012 05:45:23 PM

@freedom

Sir once again...it is 6 years from the time of the default on the debt. It matters not if any payments or settlements have been reached at a later date.

Why would anyone want to make an effort to make any payment if it just keeps resetting the clock.

I reiterate.....6 years from default of original debt.
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RE: Negotiate or leave run out - advice please.

Postby freedom » Fri Jun 01, 2012 03:55:42 AM

It is 6 years from DLA - date of last activity, and when you make that settlement or payment - that is the date of last activity.
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RE: Negotiate or leave run out - advice please.

Postby TJ.brooks » Fri Jun 01, 2012 02:50:14 AM

It is 6 years from date of default, not from when you may have paid it off.
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RE: Negotiate or leave run out - advice please.

Postby kerwobble » Thu May 31, 2012 07:23:51 PM

Sorry I cannot help you but I wonder the same thing. I just negotiated with a creditor for an account that had been inactive for 3 years. Now that I have paid it off is it going to restart to one and last 6 years again? I i left it , it would have only been on my equifax 3 more years right?
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Negotiate or leave run out - advice please.

Postby freedom » Wed Sep 14, 2011 09:24:13 AM

I have been negotiating debts over the last few years am in a position to negotiate a few more, they are 4 years past date of last activity.

Is it best to negotiate a settlement - or just leave them at this point.

I read that paying out now - will re-start the DLA - meaning that they would show on my credit for another 6 years - while leaving them be - they will drop off in another 2 years since it's been 4 years already.

advice please - what's the best for raising my score???
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