Does this really happen, so if it does then unpaid credit cards stay on your crdit report forever, right? So lets say creditor #1 cannot collect money from you on your chase credit card, your last missed payment was on 01/01/2007, so they sell your account to collecter #2 on 11/01/2007. So on 01/01/2015 your unpaid balance for the chase credit card on collecter #1 earses, but chase credit card is still there, right?, because collecter #2 still has it then they sell it to collecter#3, So it NEVER comes off right??? This is what I was told. I'm sooooo confused HELP!!
2007-10-17 05:31:09 · 12 answers · asked by prisper25 1 in Politics & Government ➔ Law & Ethics
Help me please
2007-10-17 05:32:07 · update #1
Yes, the collection rights can be resold over and over again.
This opens up an opportunity for you to settle it for less than full amount. The 2nd, 3rd, 4th companies down the line purchase the "balance" at a discount, not the full amount you owe. So it is possible for you to settle it for less than full amount, if what you offer is greater than what they paid for it.
Once you do pay whatever is agreed, your credit will improve a bit.
2007-10-17 05:42:55 · answer #1 · answered by raichasays 7 · 0⤊ 0⤋
A debt can be resold many times. However there is statute of limitations after which the debt holder can no longer sue you for the debt and they are not allowed to report it to the credit agencies. That period of time begins from when the ORIGINAL debt became delinquent, not when the latest collector purchased the debt. The companies that purchase these old, junk debts are counting on the people they collect from not knowing the law. You may receive a letter from an agency offering you the chance to pay off the debt for only 50 cents on the dollar. They may have only purchased the debt for 10 cents on the dollar so they're still making money. The big mistake a lot of people make is they send a payment right away and that payment activity can cause the clock to "reset", resulting in the debt reappearing on your credit report and restarting the statute of limitations.
If you are contacted by a debt collector you should do two things. First, ask for written validation of the debt and they are authorized to try and collect it (they have to provide this information). Second, you should inform them that you will only communicate with them in writing. Whatever you do, don't admit that the debt is yours unless you receive proof. Even if it is yours, if it is older then 5 years (that time period is for Florida. Other states will vary) then there is nothing the collector can do .
2007-10-17 05:50:44 · answer #2 · answered by Anonymous · 1⤊ 0⤋
What they are doing is selling the right to collect your balance. Credit collectors get paid a percentage of what they actually collect. If one creditor feels there is a small chance of recouping money, he may sell the rights at a reduced cost to someone else. This way, at least he makes something.
This all has no bearing on you, until you pay what you owe, the balance remains for you. The last payment date is not changed, that is determined by the credit card, not the collection agency.
2007-10-17 05:38:30 · answer #3 · answered by trooper3316 7 · 0⤊ 0⤋
Answer #1: Yes (or most likely depending on the type of note) However, The date a problem first arises starts a clock in most matters of legality, in most instances, that date (That date alone) starts the clock regarding any statute that may exist. Don't get me wrong, I'm not saying you are in the clear and I'm not giving you legal advise. You need to research not only statute, but may need to research case law depending on where you live. Lending law is diverse and constantly changing.
Sounds like you may have a fear of or are currently being harassed by debt collectors. The good news is (if you do your research "& do it well" you may be able to recoup funds from people utilizing deceptive methods of debt collection)
ie....I remember a particular case where an out of state law firm was seeking to collect payment for an expensive car bought from an exclusive dealer...... The sad truth is, the wealthy purchaser got a "rare -expensive-classic" for next to nothing (his teenagers trade-in -worth a few thousand) and the debt collector paid 100K to the purchaser for illegally seeking repayment of debt by an unatherized, out of state lawyer....due to the fact that the same debt collection law firm had a valid contract (and family ties) with the dealer, the auto dealer wiped free the debt, the collection law firm paid the purchaser and it never went to court.
Sad but true...
2007-10-17 16:49:32 · answer #4 · answered by Born in the USA 3 · 0⤊ 0⤋
Your debt is the business enterprise's asset. money owed are bought every day. as quickly as yet another business enterprise buys your debt, they have precisely the comparable rights the unique creditor had. That suggested, the unique creditor can't garnish your wages with out first suing you an acquiring a judgment. in case you weren't served with be attentive to a lawsuit, you could petition the courtroom to set aside any default judgment. this could basically postpone sequence in case you quite owe the money.
2016-10-09 10:07:32 · answer #5 · answered by ? 4 · 0⤊ 0⤋
The key is to track down the creditor who currently has the account. Once you find them then you pay it off and it states on your report Paid or Settlement or whatever option you used. The creditors who previously had the account should note that they have forwarded it to another creditor.
so long story short it happens, it sucks, but it can be fixed.
2007-10-17 05:40:09 · answer #6 · answered by dormi22 3 · 0⤊ 0⤋
Yep, until hell freezes over.
That was in answer to your title.
As for your credit report, the TOTAL amount of time the report will reflect an unpaid balance does NOT depend on who owns it but the last activity on the account.
Under Federal law it will remain for seven years or until you either pay the full amount or dispute it and win.
2007-10-17 05:34:49 · answer #7 · answered by hexeliebe 6 · 0⤊ 0⤋
The debt is purchased and so is all of the obligatins that come with it.
same thing happens with mortgages, they are bundled and sold, and it doesn't even matter if you are late.
Same with insurance policies - where the payment you recieved in a payout originated may not be withthe copmany that you hae the policy with, they may only be a conduit at that point.
relax, there are no loopholes here. this is routine business.
2007-10-17 05:49:00 · answer #8 · answered by Barry C 6 · 1⤊ 0⤋
Yes. Debt collection agencies essentially buy your debt from other creditors.
2007-10-17 05:40:12 · answer #9 · answered by Eisbär 7 · 0⤊ 0⤋
They can sell the debt, however that does not change the last missed payment date. See http://www.fair-debt-collection.com/
2007-10-17 05:39:07 · answer #10 · answered by davidmi711 7 · 0⤊ 0⤋