Disqualification?

ajmezz

Epic Member
Apr 8, 2010
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In the process of possibly joining the AF and decided to run a credit check. Turns out I have something that was turned over to a collections agency back in 09 that I've never been contacted about or received any kind of notification to pay. I also have two occurences of being late on a cc. All of which were while I was in school in 09/10. I haven't had a chance to call about this collections payment, but assuming everything gets handled, would this be cause for disqual? Thanks for any and all input.
 

ajmezz

Epic Member
Apr 8, 2010
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That's the plan flyby. I'm just checking up on everything first.

Thanks cook.
 

MikeATC

Retired FAA, NATCA Member
Apr 3, 2009
1,230
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Nashville TN
The thing about the alledged collections is if you contact the collection agency it resets the collection clock. Once a collection goes beyond 5 years because you were not ever notified or ignored it, the law states that they can no longer hassle you or try to collect the alleged debt.

Granted if the debt is yours you should be morally responsible to ensure that you pay it, but I've seen individuals receive debt notices from collection agencies that were not their debts and were either wrongly filed or the debt was due to identity fraud.
 

noid

Curtis E. Carr
Jun 24, 2008
2,024
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In a van down by the river.
I do not think the clock resets unless you make a payment. After the 5 or 7 year statute of limitations, they can no longer sue you. If you make a payment, it makes it a new debt instead of an old debt, and thus hurting your credit even more and also allows them to sue you. That said, it differs from state to state.
 

ajmezz

Epic Member
Apr 8, 2010
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Does the clock reset if you pay it off immediately or does it remain the same? It's only $112, but I have no clue what it's for, so I don't want to just pay someone elses shit. Also, if it's still pending, that's a no go correct?
 

noid

Curtis E. Carr
Jun 24, 2008
2,024
19
38
In a van down by the river.
Paying it off in full will just show up as paid. If they offer to settle for only a portion, then it will be reflected as such, showing lenders that it was not paid in full but settled. If you have the funds, it's best to pay it off in full.
 

ewanobeach

Trusted Member
Aug 24, 2011
387
1
18
FAA purgatory.
Does the clock reset if you pay it off immediately or does it remain the same? It's only $112, but I have no clue what it's for, so I don't want to just pay someone elses shit. Also, if it's still pending, that's a no go correct?
you can ask the agency verify the debt, and if they fail to do so within a set timeframe you can have it removed from the agencies..
 

ewanobeach

Trusted Member
Aug 24, 2011
387
1
18
FAA purgatory.
Paying it off in full will just show up as paid. If they offer to settle for only a portion, then it will be reflected as such, showing lenders that it was not paid in full but settled. If you have the funds, it's best to pay it off in full.
actually, and I talked to the OPM interviewer about this, even if you settle it shows as "paid," so as far as clearances go they don't give a crap if you settle/pay in full. they just want to know that if it was indeed your debt, you did make a good faith effort to make it right with the company.
 

ewanobeach

Trusted Member
Aug 24, 2011
387
1
18
FAA purgatory.
The thing about the alledged collections is if you contact the collection agency it resets the collection clock. Once a collection goes beyond 5 years because you were not ever notified or ignored it, the law states that they can no longer hassle you or try to collect the alleged debt.

Granted if the debt is yours you should be morally responsible to ensure that you pay it, but I've seen individuals receive debt notices from collection agencies that were not their debts and were either wrongly filed or the debt was due to identity fraud.
seven years is how long it takes to "fall off" your credit report without any activity, i.e., you pay it off today it will be on there until 2/22/2020, or it was "charged off" today it would also fall off 2/22/2020.. That's nationwide. statute of limitations varies by type of debt and where you live, and that determines how long they have to collect/hassle you.

Statute of Limitations on Debt Collection Sorted by State

and I know it doesn't apply in your situation, but personal fed debt never goes away, like federally funded aid you became disqualified for or loans from fed gov't for education.
 

noid

Curtis E. Carr
Jun 24, 2008
2,024
19
38
In a van down by the river.
actually, and I talked to the OPM interviewer about this, even if you settle it shows as "paid," so as far as clearances go they don't give a crap if you settle/pay in full. they just want to know that if it was indeed your debt, you did make a good faith effort to make it right with the company.
It depends on the creditor and how they report it. Some are nice enough to show it as paid, but most don't care once they have your money and show it as a settlement.
 

ewanobeach

Trusted Member
Aug 24, 2011
387
1
18
FAA purgatory.
It depends on the creditor and how they report it. Some are nice enough to show it as paid, but most don't care once they have your money and show it as a settlement.
I'm saying as far as OPM is concerned. I thought the issue was the OP was worried about being disqualified for a security clearance as a result of his debt.