Once a company gets a judgement, how long do they have to report it on your credit?
I was just informed after an escrow search, that some company I have never heard of, never did business with and was never served by, got a judgement against me in January of 2016. Based on the name recorded, this would have been on a debt more than 20 years old that was probably sold a few times.
The judgement was never reported on any of my credit reports and is still not showing. Should I worry about this popping up? Is there a certain amount of time a company must report the judgement within? It has been almost 4 years.
This has nothing to do with a home purchase and will not delay any escrow processes. I just want to know if there is something in the Fair Credit Reporting Act that indicates a company is required to report the judgement within a specific amount of time or lose the ability to report it completely.
- 3 weeks ago
They can report it at any point.
- 3 weeks ago
derogatories fall off credit reports in 7-10 years. If the account is not removed in that time, you can dispute it noting statute of limitations for debt reporting has run out
- StephenWeinsteinLv 73 weeks ago
Tax liens can be reported until they are paid; there is no time limit for unpaid tax liens.
For anything else, there is a time limit, usually 7-10 years. So something 20 years old should show up on your credit report -- unless it is an unpaid tax lien.
- Anonymous3 weeks ago
There is no obligation to report it on a timely basis or ever. Not doing so does not mean they can't do it later.
Your story sounds like nonsense. If you are sued you get notice. Only if you ignore them can it become a judgement.
If they have not done anything by now, its reasonable to presume they probably will not.
When I worked collections way back when, we would never sue without a clear path to collection, (a garnishable job)
Im pretty sure they cannot do anything on a 20 year old debt. 2016 is not 20 years ago.
You have no idea what you are talking about.
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- A HunchLv 73 weeks ago
We don't know why you mean by an "escrow search"?
Do you really mean by underwriting as part of the home buying process? If this is the case, yes you have to worry about it. The loan WILL NOT close while you have this outstanding judgement.
- to get this judgement removed, you will have to go back to court and to prove that you were not properly served and have no knowledge of the judgement. If you were living at the address that the courts had on file at the time, you are out of luck. If you decide to go this route, it will likely take much longer than the seller is willing to keep escrow open.
- your other option is to pay it.
The judgement never has to be reported and often aren't if there is a judgement. There is no need to pay the fees to do this since the courts have the paperwork.
- martinLv 73 weeks ago
Credit reporting companies act like they are next to God Almighty, and unfortunately get away with it. The only way to sleep well at night without staying awake worrying about your credit report is to just not give a darn about it. Changing something on a credit report is harder than anything.
- Anonymous3 weeks ago
They are not obligated to report the judgment EVER. Reporting to credit bureaus is voluntary.
Should you worry? Yes, I think it's reasonable to be concerned if you know you have an old debt that you never paid which resulted in a legal judgement against you. The judgement is only from 2016 so not gone or forgotten.
Just because the judgment was never reported (not uncommon) doesn't mean someone isn't going to file for a garnishment order or slap a lien on the house once you buy it.