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I defaulted on a credit card in 2002. I have a credit report that shows the debt was charged off in 2004. In 2006 I paid or settled all accounts reported on credit reports. The credit card debt in question was not reported on any credit reports after 2004. A couple of weeks ago, I received a telephone call and letter trying to settle the debt. Can they report the debt now after the absence of 4 years? How will it affect my credit if I settle, or if I don't settle?
Firstly, If you had paid off the debts which has been charged off, then why should you pay them again? Secondly, because you became delinquent in 2002, the creditor can report the debt till seven years and six months from the date of your delinquency and so the reporting may continue till 2009 since in 2009 the seven year listing period will be over. However, outstanding debt listing does not mean that you have to pay off the debt. If you have already made the payment, then you can ask for debt validation from the creditor. If you have the proof that you have made the payment, it will help you in case they sue you to the court to recover the debt.
If you have not made the payment for the debt, first check whether the statute of limitation on your debt has expired or not. If the statute of limitation has expired, you need not make any payment towards the debt, because if you make any payment, the SOL may restart and the creditor will get time to sue you. Now since the listing is about to go out of your credit report this year, even if you do not pay off the debt, the score will improve after the debt has been removed.