CREDIT QUESTION account sold replaced on credit?

Question

I had a credit card account that was transferred to another company after they went bankrupt.I was expecting these carges to come off after 7 years.Now they are saying it starts all over because a new company picked up this account.what can i do? Is this legal?

Answer 1

If it is a negative collection account (and not a judgment) - it would not matter if it was sold, it would not matter if it was the original creditor that sold it or it was a collection agency that sold it - it cannot be re-aged to run longer than the "original" 7 year reporting period.

The "true obsolescence date" for a credit card is - 7 years from the first time you became 30 days late and never brought the account current leading to the charge off.

It does not go by the DOLA, which is generally the charge off date.
And it does not necessarily go by the last payment, unless the last payment was as descibed above (see - true obsolescence date).

I agree with what What said and the site What listed is a pretty good one. You might also click on my profile and do some reading in the links I have listed - the FCRA, FDCPA and also the last link I have listed.

Answer 2

I am assuming you are asking this because this account was in collections and not a positive account. If it was a positive account you would want that information to stay.

A company can not Re-Age the account. If this is a delinquent account then it will still be 7 years from the date of last activity. This is usually the date you went delinquint, and as long as you have not done anything to reset the Statute of Limitations(such as make a payment) just them transfering the account will not Re-Age it.

Normally a company will validate a debt if you request it, but in your case you might want to send a certified letter of validation to them anyways. If the original company went bankrupt you might have a case where they have "lost" your original debt and you MIGHT be able to have it removed from your reports now.

Answer 3

You are referring to the "negative' mark on your credit report, right?

The length of time a negative mark can stay on your credit report starts from the time you were late or the late payment went into collection, not from the last time you made a payment on the account. Some collection agencies update their reporting status on you to keep the account active with the bureaus to extend the time the account appears on your report. Very crafty and underhanded of them, because most often the account is updated and the period of time the account is active appears to be extended. Challenge this! If you do, bureaus will correctly remove it 7 years from origination. Period. In other words, paying a collection will not keep it on your credit report for a longer period of time if you are diligent.


You might want to look into sending the collector a letter requesting to validate the debt. Check out this link, if you want.

Answer 4

Absolutely yes. The only thing that drops after after seven years is the initial collection. Most of the time this is only applicable if the account is payed off. Lets say card A was payed off and card B wasn't after 7 years the derog information for card A will drop off but if the company for card B decides to take a judgement against you now its a different type of inquiry and the judgement will be on there for an additional 7 years. Lets say 7 years after judgement they decide to take a lien against your deposit accounts same thing another seven years... if the company is persistent, they will make it a new type of entry and keep it there forever... pay it off if possible.