Information and Frequently Asked Questions
Categories of Debt
Debts fall into one of four categories. It's important to know which type of debt you have because the time limits are different for each type. If you're in doubt, check with your attorney about which type of debt you have.
Oral Agreements: These are debts that were made based on a verbal agreement to pay back the money, and there is nothing in writing.
Written Contracts: All debts that come with a contract that was signed by you and the creditor falls in the category of a written contract—even if it was written on a napkin. However, a written contract must include the terms and conditions of the loan. For example, the amount of the loan and the monthly payment must be included. Medical debt is one kind of written contract.
Promissory Notes: A promissory note is a written agreement to pay back a debt in certain payments, at a certain interest rate, and by a certain date and time. Home loans and student loans are two examples of promissory notes.
Open-Ended Accounts: An account with a revolving balance you can repay and then borrow again is open-ended. Credit cards, in-store credit, and lines of credit are all examples of open-ended accounts. If you can only borrow the money on time, it is not an open-ended account.
Statute of Limitations VS Credit Reporting Time Limit
The Statute of Limitations on debt is the amount of time a creditor can legally hold you accountable for your accumulated debt. The time frame varies from state to state, and creditors can lawfully pursue the debt in court anywhere from three to fifteen years. However, if you live in the state of California, written, promissory, and Open-Ended account creditors can only enforce debt owed up to four years from the first date of nonpayment. However, there’s an exception to this rule: when a charge off (debt sold) happens, the clock doesn’t begin ticking until the first day of the charge-off. (ex. Nonpayment: 06/01/20, Charge-off: 09/01/20)
The Credit Reporting Time Limit is a time period on how long a negative debt can remain on your credit report. The Fair Credit Reporting Act defines this time period as seven years for most debts.
FREQUENTLY ASKED QUESTIONS/FAQ
Q: “How long does it take to repair my credit scores?”
A: Depending on the negative impacts on your credit report, it can take up to two to three months for negative accounts to be removed.
Q: “How are the negative accounts removed from my credit report?.”
A: The negative accounts are removed by exercising the statute of limitations on debt and the credit reporting time law through a series of mailed letters to creditors and credit bureaus. In the worst scenario, negative accounts can be removed by negotiating settlements.
Why do I have to pay an additional 21.99 for IdentityIQ?
IdentityIQ is a separate service that will provide all three credit reports (Equifax, Transunion, and Experian) on one report and will update monthly in your portal. Give you a more in-depth report on your credit scores and protect your identity with up to $25,000 in Identity Theft Insurance.
What documents should I have on hand?
State Identification Card and any other relevant material you believe will support your claim.
I locked my IdentityIQ account, how do I unlock it?
If you accidentally lock yourself out of your IdentityIQ account, please follow the recovery steps provided at the time of locking the account or click forgot password.
