Do negative credit items really drop after 7 yrs or do they start over when sold to another collection agency?

Question

I have a couple of negative items on my credit report that are approx 6 years old, I cannot pay them. I have noticed that one collection agency will "sell" the debt to another agency. Does that affect the dropoff date? Also, do items really Drop off and are gone or do they just not count against you anymore? These credit issues are really ruining my life and everything just keeps getting worse and worse and worse.

Answer 1

It's true that you often have to fight them after the 7 year mark to get them off, and it's a real pain in the neck.
I know you said you couldn't pay them, but what about settling with them? Could you pay 1/2? If you settle, that would count as the debt being paid and it would be off that much faster and you would be on your way to better credit. Call the most recent one and consider a settlement amount.

Answer 2

This question comes up over and over again. Your "collection" accounts drop off 7 years after the last activity date, which is the date you last paid the account. Since this doesn't change when it mores to another creditor, it isn't reaged. Paying something on it is the only way it reages. Judgments are different. They are 7 - 10 years from the dismissal date. By the time a collection is getting to the drop off date, it has very little impact on your score. Look at what you have done in the past 24 months. That is where most of your score comes from.

Answer 3

it affects the 'automatic' drop off date. Most people dont realize that legally, a debt is only on your record for 7 years from the ORIGINAL DELINQUENCY. So if you defaulted on a medical bill in June 2000, no matter how many collection companies had it, it should nto be on your report past June 2007. However you may have to initiate disputes to get them removed--- hopefully you have proof.

Also, all you have are 2 collections that are now 6 years old, you really can have a decent score. I hope you've had long-standing credit accounts with low balances and lots of good payment history!! That's the only way to balance out bad stuff while waiting for it to expire.

Answer 4

They really do drop off after 7 years. Sometimes a collection agency will sell the debt around this time, but it does not affect the length of time that the debt can remain on your credit report.

NCO Financial tried to reset this 7 year clock on many debtors. They received a hefty fine for their illegal activities.

Answer 5

By law, those negative accounts need to fall off of your report 7 years from the date of last activity. (Usually when you're 120+ days past due). They will fall off the report, but legally, you still owe the debt. The creditors still have the right to try and collect the debt. Even though they will fall off soon, I would try and settle with the creditors. Otherwise, it'll haunt you forever.