Can an account be sold and then reported under NEW company to restart the 7 year report period?

Question

If you go late in 2000 and then the creditor charges off your account in 2001, then the creditor sells to another company in 2002 who reports at that time a new fee which is the original plus additional collection charges. In 2004 the 2nd company sells to a 3rd company who again adds more charges and reports it late in 2004. When does the 7 years expire on ALL of these? Will ALL of them be removed in 2007 when the initial debtor's record is removed or simply the original one while the other 2 stay?

I need a little more clarification on what people have said. You say it can only be listed once, but does that mean if the original creditor has a listing, NO ONE else can then list the account, even if they purchased it?

Answer 1

By law, negative items can only be reported on your credit history for 7 years, beginning on the date of the delinquency.

If another collection agency buys it, they can post to your report, but you need to make sure they put the correct reporting date on you records. Many times they will "re-age" the debt by posting an incorrect date. If you can prove they are posting the wrong date, and they refuse to correct it, you can sue them for violating the Fair Credit Reporting Act. It's a small claims suit and very simple to file. You don't need a lawyer.

The report can only be listed once on your history. If there are duplicate entries, dispute them with the credit reporting agency. Again, if they are not removed you have a lawsuit.

So from what you are saying, they are already in violation of two items, and you may wish to pursue this.

Answer 2

When Studly was talking about it being listed once - he was talking about the collection agencys.

While the original creditor and ONE collector can list it, the original creditor must show a zero balance, if it had been sold to a collector, and only ONE collector can list it, not two (or more) collectors.

And to further explain Studlys answer about the 7 year rule, it is the first time you became 30 days late and never brought the account current leading to the charge off. That is generally 6 months earlier than what the original creditor (not the collectors) have listed on your reports as the date of last activity (DOLA)

Studly gave you an excellent answer (he usually does) I would suggest following his advice.

Answer 3

No. That is illegal under the FCRA. Keep your credit reports and any info that you have from the original creditor. The credit reporting agency and the company who bought the account can be sued if the correct information is not being furnished to the credit reporting agency. I have sued all three bureaus and a few creditors for the same thing.

Answer 4

The 7 twelve months clock for adverse counsel is meant to run from the date the account grew to grow to be antisocial. in case you're making commonplace money, the present money are easily advantageous counsel. Ask the creditor if the will document the account as 'contemporary' after receiving 5 or 6 months of on time money. as long because of the fact the delinquency itself is bumped off, the account itself can easily help your credit.