mrstatute

Actually, the latest credit product systems from Experian and TransUnion (not sure about Equifax) allow creditors to see inquiry data as a list of dates. This array may include pre-approved offer checks and third-party pulls (such as those from Credit Karma). I believe you can even see this date list on Credit Karma as well.

In the same way that a debt validation letter is a "smell" to the debt collector that the debtor is concerned about their debt (and potential credit status), any indicator that the debtor is evaluating their own credit can also potentially raise the debtor's file with the collector to high-attention (or litigation) status (versus being sold off to another collector).

That tactic has been shot down by the courts, but there are some big loopholes to it. Any acknowledgement of the debt (normally in writing) or any token payment by the debtor can reset the clock. Sometimes, debt collectors employ shady practices to get the statute reset, such as telling the debtor, "If you pay us $10, we'll stop calling you for three months." This token payment will reset the clock.

Exactly. Some blogs and other websites are offering bad advice. Performing overt actions such as: checking one's credit, sending debt validation letters, paying small amounts, maintaining other debt at the expense of another, seeking jobs which check credit, and others can empower debt collectors to pursue that individual vigorously. On the other hand, a completely destroyed credit report (100% charge offs) with no known mortgage or vehicle with a hard-to-find debtor is unlikely to be pursued since they are more likely to be collection/judgment proof.

What many people do not realize is that most charged-off debt is uncollectible. Only a small fraction actually gets paid. Most debtors cannot be located by their collectors, and that's the primary reason why debt collectors will normally settle for less than what is owed.

It's much more complicated than that. The law doesn't wipe the slate clean. Rather, it gives the debtor an affirmative defense against a lawsuit after X years. It does not stop a debt collector from trying to collect on otherwise uncollectible debt (phone calls, letters, calls to friends, family, and employers if the debtor doesn't respond). Additionally, debts barred by the statute of limitations can sometimes still crop up as "zombie debt" years or decades later. Collectors can (and will) put a new records on a person's credit report, preventing most debtors from rebuilding their credit.

When a debtor stops paying debts entirely, it can start a whirlwind of problems. They can be barred from finding housing, certain types of employment, their actual current jobs (certain professional licensing require financial responsibility). Additionally, most debts end up in the hands of collection attorneys (CA) who will sue en masse to obtain judgments. This effectively stops the statute of limitations and gives the CA 10 years, 20 years, or a lifetime to collect the debt. In these cases, a well-timed bankruptcy is (and should be) an option for people. In some cases of debt -- student loans for example -- the debt is presumed non-dischargeable and can create a lifetime of hardship for the debtor.