No. of Recommendations: 2

You wrote, Watch out for a clock reset.

I think the issuing in the FCRA with clock reset was fixed by Congress back in 1997. I don't believe the clock can reset now unless you've somehow managed to bring the loan current. Its described in 15 USC § 1681c (c) Running of reporting period, which can be found here:

The 7 year clock begins when the account is ...placed for collection or charged to profit and loss... (This is no later than 180 days from the date the account first became delinquent.) The only way it could be reset is if the account has been rehabilitated and you default again. A partial payment won't do that. Neither will stating that you owe the debt. It seems to me the only things that could rehabilitate a debt is either through a means described in the original contract or the execution of a new contract that supersedes the old contract. Those are things you probably won't "do by accident".

- Joel
Print the post  


UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.