Collections – Lost Trial for Car Accident?
Tara C asked:
I was hit by a car in 2003 and sought medical attention in 2004. I had 2 bills thought I thought would be covered by the guy who hit me, but he got a lawyer and sued. The 2 unpaid bills went on my flawless credit report in 2004. We just had the trial 2 weeks ago (due to postponements with Hurricane Katrina), and we lost. Their lawyer insisted these injuries were due to a previous injury before the car accident happened.
I was hit by a car in 2003 and sought medical attention in 2004. I had 2 bills thought I thought would be covered by the guy who hit me, but he got a lawyer and sued. The 2 unpaid bills went on my flawless credit report in 2004. We just had the trial 2 weeks ago (due to postponements with Hurricane Katrina), and we lost. Their lawyer insisted these injuries were due to a previous injury before the car accident happened.
My lawyer said to check my credit report which I just pulled up. It said these 2 charges will be taken off of my credit report in 2011. I honestly didn’t think I was going to have to pay them, so that’s why I never did. If I wait until 2011, do they disappear or get filed as something else? I live in Louisiana. Since 2004, my credit score has gone back up, so I know it has a lesser effect now. I’ve heard that if I pay it now, it will be reset and affect my credit report even more. Thanks!
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May 10, 2009 | Filed Under Accidents & Personal Injuries Lawyers
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2 Responses to “Collections – Lost Trial for Car Accident?”
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Negative information may fall off your report after 7 1/2 years, but that does not mean the debt goes away. Those debts can basically be sought after forever.
Under the Fair Credit Reporting Act, as amended by the Federal Trade Commission, you have rights as a consumer, and none of the three privately owned credit reporting agencies can have the negative entry on your profile for more than 7 years. They will have to be stricken out of your records then. As you have witnessed yourself, a collection or lat payment would affect you more within two years from its origination, then the effect diminishes as you get closer to the 7 year mark, however, if you pay that you will bring those debts into current status, which means, they will again hurt your FICO score more than they are now. It is wise to avoid negative credit entries on your profile, but if they can’t be avoided, then taking care of them within the first two years would be your best bet, but in cases like yours, it was not feasible, now you can make efforts to delete them from your profile, with the assistance of a legitimate credit restoration company..