Debt Collection Fraud: Old CC Debt in Collections

[Biolet96]

I checked my credit report today and it was flagged for collections from a debt collection agency in the amount of $15k for debt incurred in 2008. This derogatory info had fallen off the report several months prior, yet the status date is 2/10/14. I have not paid anything on this account since spring/summer 2008 and the statute of limitations has passed.

How is this legal? 

The original creditor was Chase Bank. In late 2010,  the debt was sold 

to a debt collection agency which has since liquidated. Sometime after that, it was sold to this debt collection agency that is trying to retrieve the debt.

When I called Chase to get info on my default date  and/or date of last payment they said they couldn't because the account has long since been closed. The liquidated collection agency which supposedly bought the debt also has no record of it or me owing the debt. So the question is, what recourse do I have to fight this collection account on my credt report? 

thank you

[drkaje]

They purchased your unpaid debt.

Depending upon how well they maintained a paper trail DV may help. Companies buy junk debt all the time, it's not illegal so you may have to negotiate a PFD.

At least the SOL is up. The inability to sue (and get a judgment for the money) may make them more willing to negotiate.

[guiness56]

To add, as long as the credit reporting time frame has not expired it can continue to report.

[p-]

I don't think this counts as fraud...  The SOL may be out on a lawsuit, but that doesn't remove their right to collect if you really did owe the money.  It also doesn't remove their right to report that you owe on your credit report.  The status date is different from the DOFD, or Date of First Delinquency...  If the DOFD is incorrect, you can dispute, preferably after a DV.

On the plus side, they know it is about to be removed from your report, and probably bought it at a discount.  After going through the DV process, you might be able to negotiate a PFD for pennies on the dollar, just by reminding them that it will age off of your report pretty soon anyway, so why not make a deal?  You are in a failry strong negotiating position as they have little leverage.

Good luck,

[RobertEG]

The debt collector's obligation was to have reported the DOFD on the OC account to the CRA within 90 days after reporting of their collection.

There is no limit on the time period that they can actually report their collection.

It is then the obligation of the CRA to determine, based on the reported DOFD, whether they can include the reported collection in credit reports they issue.

If more than 7 yrs plus 180 days has expired from the reported DOFD, then it wont appear.

If the debt wa incurred in 2008, then the DOFD would be after the debt was incurred, and the max exclusion date would thus not appear be until sometime in 2015.

You need to first determine the DOFD that the debt collector reported to determine its maximum exclusion date.

Debt collector violation would only occur if they knowingly reported an incorrect DOFD.