I have an old debt and it keeps being transfeered to new collectors now I show 8 outstanding debts. How is this legal all 8 send me letters this original debt is over 8yrs old
2007-11-11 07:44:04 · 6 answers · asked by GEORGE J 1 in Business & Finance ➔ Credit
Once an account reaches the reporting obsolescence date is is illegal to re-age the account and report it. If they do that, you have a legal right to sue them for the violations.
If those 8 debts you are talking about are for the same debt, and it is still within the reporting period, only the original creditor and "ONE" collector can legally report it.
The original creditor "must" report a zero balance if the collector is reporting and the only collector that can legally report is the one who actually has the account.
You might click on my profile and do some reading in the FTC links I've provided for the FDCPA, FCRA, etc.
Learn your rights and use them.
2007-11-11 08:30:35 · answer #1 · answered by echo 7 · 4⤊ 0⤋
I noticed that on my credit report, too.That iinstead of the debt being cleared in 7 years, the thing is given to various collection agencies who all report the thing. A single debt now multiplies like rabbits.
One company came after me for a debt that was 15 years old. And they charged back interest for the 15 years, the original debt occurred because they misapplied a payment (paid it to someone else's account) and couldn't find it for almost an entire year. And I had continued to make my regular payments, plus the finanace charges.
With 15 years of interest, the debt skyrocketed to $7000.
So to answer your question, yes they can, and I have no idea why it's being permitted. It seems like a way for creditors to get back at someone who owes them money, and a ice way to get around having a debt wiped out in 7 years.
Isn't it interesting...this stuff started just a few years before bankruptcy laws changed...
God bless you.
2007-11-11 15:58:16 · answer #2 · answered by 1985 & going strong 5 · 0⤊ 2⤋
This is not a legal practice but they do it anyway. They claim that it is a "new" debt since it has a new source. You can contact the company that is claiming the debt for proof of the debt, as they will have to delete the debt if they do not have proof of the debt, but my best advice to you is to seek legal council.
2007-11-11 16:40:58 · answer #3 · answered by f1le_f0und 3 · 0⤊ 0⤋
That's the way it works. Credit reporting bureaus only keep such things on file for seven years, but if the debt is sold to one or more collectors, it reappears in your credit file, and you start your seven year wait all over again.
Why don't you just pay the debt and have it over with ? I assume you owe the money, and the creditor has a right to have it collected from you.
2007-11-11 16:30:48 · answer #4 · answered by acermill 7 · 0⤊ 5⤋
Echo is the only one here who has answered your question correctly and the proof is in her profile links. Everyone (Acermill, Billie (the idiot) and 1985) needs to go to Echo's profile and get very aquainted with all of the links she has provided before they answer another question that even remotely has something to do with credit reporting and the laws that govern credit reporting. In this area, you better do your homework before making a fool of yourself. The only other one who came close to answering correctly was file-found and his answer was vague.
2007-11-11 22:00:26 · answer #5 · answered by Anonymous · 1⤊ 1⤋
Hint: Pay it.
2007-11-11 16:08:21 · answer #6 · answered by Anonymous · 0⤊ 3⤋