Need help....is this fraudulent collection activity?

[Permafrostrick]

I got an alert in my e-mail today announcing my FICO score dropped by 25 points and a new account had been opened.

I have not opened anything recently so I logged in to myfico.com to check out the alert.

It seems an old debt of 4.5 years old a different collection agency took it over and has opened a NEW and OPEN account for the balance of this old debt.

This seems totally wrong as it takes an unpaid debt of 4.5 years on a closed out account and has renewed it as a new and OPEN account.

Please advise as this seems to be some dirty tactic by this different collection agency. They should not be able to affect my FICO score on an old debt in this manner. This old debt was on an unsecured credit card.

If this isn't right, please advise on what steps I must take to get rid of this new and renewed addition. I have never seen anything like this before.


Thx

[Anonymous]

Until the 7 year CRTP expires, the CA can report. If they don't collect and sell the debt, the new CA will report. The first CA should be removed in that case though.

1 OC and 1 CA can report at the same time.

Even though it is 4.5 years old it is a "new" collection on your report.

[Permafrostrick]

Thx for the quick reply. so are you saying that this debt still has the age attached to it somehow and that after 7 years from the original date of the debt being "charged out" a CA won't be able to report it anymore?

No previous CA had reported it so only the original creditor was listed on my report so it showed as a closed account....so it struck me by surprise when this one listed it but as a new and open account. The fact my FICO score dropped by 25 without any change to this old debt is what bothers me. The age and amount of the debt is no different now versus a couple months ago so why is this CA able to affect my rating by 25 points? This account is not listed under collections but as a new credit account although for type it does list the type as a collections account. so...best to ignore it for the next 3 years until it hits 7 years old?

I have done a lot to rebuild my credit getting it from around 580 up to 720 until this 25 point setback...4 years ago was unemployed for 1 year which killed my credit not able to make any payments. I was able to make good on all after employed again except this 1 debt.

I was hoping to get a house in the next year or so but with this as a "new" and fresh entry on my record besides affecting my rating which will affect interest rate I can get it also will make it more difficult to qualify given the tightened up financing now from tons of foreclosures happening in the housing market.

again thx

Message Edited by Permafrostrick on 04-15-2008 11:39 AM

[Anonymous]

Permafrostrick wrote:
Thx for the quick reply. so are you saying that this debt still has the age attached to it somehow and that after 7 years from the original date of the debt being "charged out" a CA won't be able to report it anymore?

This is correct. The DOFD(which the 7 years goes by) is set by the OC and CAN NOT be changed once it is at this stage. Keep hard copies of old reports with the OC showing what DOFD is, that way you have proof of DOFD.

 No previous CA had reported it so only the original creditor was listed on my report so it showed as a closed account....so it struck me by surprise when this one listed it but as a new and open account. The fact my FICO score dropped by 25 without any change to this old debt is what bothers me. The age and amount of the debt is no different now versus a couple months ago so why is this CA able to affect my rating by 25 points?

Because it is a collection. A new collection at that. The next worst thing to a public record. Did you have any other collections?

This account is not listed under collections but as a new credit account although for type it does list the type as a collections account. so...best to ignore it for the next 3 years until it hits 7 years old?

I have some reported under open and installment. I have been given conflicting answers as to if this is ok or not.

Who is the CA, you might be able to PFD.

[Permafrostrick]

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@Anonymous wrote:
The next worst thing to a public record. Did you have any other collections?

---

nope....only one. rest I was able to come to repayment terms with the OC so could repay. 1 of the OCs was unwilling to do so and was asking for what would have been total repayment in only 1 year with 30% interest applied the whole time as well. All the collection agencies that have had it(well, only talked with the first couple) refused any special terms etc. and were still charging 30+% interest on the debt making it not payable. I offered what seemed to be reasonable terms especially given I know they are buying the debt for pennies on the dollar yet oddly they still refused. you would think they would still make a large profit...guess not.

Others...was able to get interest cut to 1% and 4 years to repay. I could make those payments.

What is PFD?

The "new" collection agency is Pinnacle Credit Agency.

Odd thing though is they have not contacted me in any form yet. You would figure where they bought it 1.5 months ago they would be harassing me.

Maybe they have outdated information on me...old address and/or phone number....hope it stays that way for at least a while. hehe

The rest of my credit profile is in good shape...still have a few high balances on revolving but good standing credit I am paying down...figure I get that down under 50% of my limit and my rating likely will go back up 20 points putting me back over 700 which is where I want to be. I have not missed one payment on 10+ active accounts since 4.5 years ago. This new collections account seems to make that almost moot(?).

Just wonder on lending though if the overall rating is all they mostly look at or if they see a "new" collections they will see that as a fresh default instead of one from 4.5 years ago which won't be in my favor.

[Anonymous]

Permafrostrick wrote:

nope....only one.

Would be why the large hit.

rest I was able to come to repayment terms with the OC so could repay. 1 of the OCs was unwilling to do so and was asking for what would have been total repayment in only 1 year with 30% interest applied the whole time as well. All the collection agencies that have had it(well, only talked with the first couple) refused any special terms etc. and were still charging 30+% interest on the debt making it not payable. I offered what seemed to be reasonable terms especially given I know they are buying the debt for pennies on the dollar yet oddly they still refused. you would think they would still make a large profit...guess not.

Others...was able to get interest cut to 1% and 4 years to repay. I could make those payments.

What is PFD?

Pay for delete. Under "Freq Requested Threads" stickied at the top of the forum, you will find more information.

The "new" collection agency is Pinnacle Credit Agency.

Odd thing though is they have not contacted me in any form yet. You would figure where they bought it 1.5 months ago they would be harassing me.

Maybe they have outdated information on me...old address and/or phone number....hope it stays that way for at least a while. hehe

The rest of my credit profile is in good shape...still have a few high balances on revolving but good standing credit I am paying down...figure I get that down under 50% of my limit and my rating likely will go back up 20 points putting me back over 700 which is where I want to be. I have not missed one payment on 10+ active accounts since 4.5 years ago. This new collections account seems to make that almost moot(?).

Just wonder on lending though if the overall rating is all they mostly look at or if they see a "new" collections they will see that as a fresh default instead of one from 4.5 years ago which won't be in my favor.

Mortgage lenders normally do a manual review instead of just looking at your score. I'm sure they will know it is from long ago. You can also explain that to them and explain your situation. Some lenders do require all collections to be paid though.

What is your SOL? Find simple SOL here -

http://www.bankrate.com/brm/news/cc/20040116b2.asp?caret=8

[Permafrostrick]

Ok, for the SOL...is it for state I reside in or for the OC?

For Maryland, it lists the SOL as 3 years. I am over 4 years since that debt already and have resided in Maryland that entire length of time.

It is clear this means I don't have to worry about getting sued etc.

Morally I am ok with that old debt actually because over the 7 years I had that account open I paid the OC interest that was a little more than what the debt was when I defaulted....so they already have my money.

k, does that SOL also apply to a collection agency listing a new and open account in my credit report?

again..not heard from this new collection agency even once yet...no mail, no calls...no idea another agency had it until I saw the alert for my credit report.

Message Edited by Permafrostrick on 04-17-2008 03:56 AM

[Anonymous]

Permafrostrick wrote:
Ok, for the SOL...is it for state I reside in or for the OC?

The state that you reside in or opened the account in.

For Maryland, it lists the SOL as 3 years. I am over 4 years since that debt already and have resided in Maryland that entire length of time.

Then you would use Maryland's SOL.

It is clear this means I don't have to worry about getting sued etc.

As long as SOL is expired, if they were to sue, you could appear in court and use "expired SOL" as your defense. They can file suit and win after SOL expires IF you dont' show up in court.

Morally I am ok with that old debt actually because over the 7 years I had that account open I paid the OC interest that was a little more than what the debt was when I defaulted....so they already have my money.

k, does that SOL also apply to a collection agency listing a new and open account in my credit report?

Yes.

again..not heard from this new collection agency even once yet...no mail, no calls...no idea another agency had it until I saw the alert for my credit report.

Message Edited by Permafrostrick on 04-17-2008 03:56 AM

When past SOL, CA's are more likely to accept a PFD.

[Permafrostrick]

hmm, so I can dispute this new collections account on my credit report since past SOL?

Will it just be writing them, stating the SOL has passed on the debt and to cease all activity and remove their report of this on my credit report?

obviously the OC one would still remain for years to come.

or does that SOL only apply to be sued so even another few years from now a collection agency can still list a new collections account?