Can a creditor report neg info for 7 years & then sell it to a collection agency & the 7 years start over?

Question

I was going back thru some of my old credit reports to resolve some issues with my newest one.....I saw that I had a bad debt let's say with "Acme Loans" - The open date was August 1997 & they continued to report until 2003 where it was then sold to a collection agency - their open date is 08/2003 - Can I have the credit bureau's delete the collection agency since the original debt began reporting in 1997? Also had another one where the original debt was 02/1998, then sold to a collection agency & their open date was 8/2000 should have fallen off this year....but they then sold to another collection agency in 2005 & their open date is now 9/2005??? Can they do that??

Answer 1

The open date with the original creditor means nothing. You need to know when the date of last activity was (DOLA) with the original creditor, before the account was charged off and sold.
The original creditor should have it listed on your reports.

If you are unsure of when the actual date is, send a letter (not a dispute) to the the credit reporting agency's and request - the date of first delinquency on the original creditor accounts.

There are many things that an original creditor and a collection agency (or junk debt buyer) cannot place on your reports.

A few examples:

If the orginal creditor charged off the account and sold it, they need to report a zero balance.

The collection agency cannot show - a past due, open account or claim they are a factoring company.

And the list goes on and on.

I would suggest doing some research. You might want to read the FCRA and the FDCPA. Which are easy to find through a search. But are very long reads.

One other place you might check out is the link that I am providing. There is a great deal of good information on that site.
It is a self credit repair site. You can research the info on there and/or ask questions with the people who have been through this before.

Answer 2

You can only get the marks removed if the statute of limitations has completely expired. That changes in every state, but the big thing is: it has to be x-years from the last time you made a payment or promised to make a payment. 6 years and 364 days after the statute has expired is the last day that the holder of the debt can mark your report without you having the ability to have it instantly removed if you see it and can prove that these conditions have been met to the satisfaction of the credit bureau.

Answer 3

a collection agency can threaten to do anything, and they will threaten to report an old unpaid debt that they bought, perhaps in a corporate bankruptcy, as a new bad debt. if they do, you can dispute the charge with your credit bureaus, when the creditor gets the request for an explanation, they probably won't respond and the old debt won't stay on your credit report.

good luck!

Answer 4

DO NOT Contact the collection agency or have them reopen the inquiry or files. That gives them the right to start things over. Dispute directly with the credit bureaus

Answer 5

I am not totally certain, but I think you can dispute having a relationship with the new company.

The debt, regardless who has it, has a 7 year life.

Except for foreclosures, school loans, bankruptcy (maybe something else), debt stay for 7 years. Bush just changed the rules for bankruptcy.

You may want to call a couple of bankruptcy attorneys for the "debt rules."

Answer 6

I believe the 7 year countdown begins when the debt is paid in full. until then it can just haunt you. When the debt is paid then save all proof of pavement forever. I know someone who settled a debt and cleared it from the credit report then several years later it came back from another agency and had no proof of the debt being paid. Good Luck.

Answer 7

Here's some web sites that came up when I googled it. My sister-in-law is having this problem right now, not sure what she's doing about it but maybe one of these sites would be helpful.
seattlepi.nwsource.com/local/183268_camco23.html

www.wcpo.com/external/dwym/16a3e629.html

www.ufs-debtmanagement.com/old-debts.html

Good Luck, Don't pay the debt and don't contact them either if it's over 7 years old they shouldn't be collecting for it.

Answer 8

NO THEY CANNOT. IT IS AGAINST THE LAW. I AM DEALING WITH A COMPANY RIGHT NOW WHO IS DOING THE SAME THING. THE CREDIT CARD COMPANIES HAVE TO RIGHT THE DEBT OFF WITHIN 180 DAYS OF YOUR LAST PAYMENT. THIS WOULD BE THE DATE OF LAST ACTIVITY. SO SEVEN YEARS WOULD START FROM THAT DATE.

Answer 9

No they can't. Check out the FCRA website. It is against the law and let tham know that. You could sue them for it.