I am really hoping to get some advice...I have two old medical collections, slated to fall off in Jan. 2013, that have apparently been bought by a new collection agency, National Alliance?, and they were reported today to my report (via myfico) causing my score to drop 14 points! I am so upset....been working very dilligently on my scores, trying to make sure everthing is good, and paid on time. These little stunts keep holding my score back! This is thevsecond time this has happened...the other with another company updating an old account almost ready to fall off. Is there anything I can do? Is this illegal? It does say next to the original date that the debt went deliquent '2006', but isn't listing it again re-aging? Thanks so much for any advice.
Are you saying this debt was already listed and ready to drop in Jan, and now a new collection agency listed it again?
As long as that date of first delinquency is correct (and it sounds like it is), then it'll still drop off when it's supposed to. It's only illegal re-aging if they try to change the date of first delinquency, to keep it on your report longer. Is the old collection still reporting, or has it been removed? I'd send a DV to the new CA. Every time a debt is sold, it gets harder and harder to properly validate, so you might be able to get it off even sooner.
This medical collection is on to its second, I think, collection agency. This new one, National Alliance, must have just purchased the debt and it is being reported on my report as a new collection. This has caused my score to decrease. It has been sitting there for almost 7 years, and now it is being reported as a new collection, although the original date it went bad was 2006 and it says 2006 next to when it went deliquent. Why would they even bother? Because they report it as a new collection, it is having that effect on my score... This is the second time that this has happened while I have been waiting for something to drop. Calgary Investments did this to me with another debt, and they report it every month and my credit score drops every month! So frustrating as I have been working so hard to improve my credit, yet it just seems to sit in the same place!!!!!
The good new is that it will still fall off in January. It doesn't matter that it's a new CA collecting on it. They must still go by the original DOFD, so worst case scenario, a couple months or so and it's gone.
If a consumer chooses to leave a delinquent debt unpaid, I dont see it as improper on the part of any debt collector to continue legitimate collection on the debt.
Credit reporting is one of their collection tactics. For the very reason that you are upset about their reporting, they gain some leverage in possible payment by the consumer based on the consumer's desire to get the reporting deleted prior to its normal aging date. It's just sound business.
Provided the DOFD was not updated in their reporting, they did nothing improper. The CRA is responsible for monitoring the DOFD, and excluding any reporting by the debt collector after 7 years plus 180 days from the DOFD.
Make sure you look at what state you live in and what the SOL for this type of debt.
Just because its off your report, doesn't mean its outside of SOL which means they could very easily get a judgement against you and a judgement would be new and last for 10 years (would be based on the date of the judgement, not on the DOFD).
Some states the SOL is shorter than reporting times, but just make sure your outside of SOL before you just ignore this debt
Even after it falls off, I would suggest paying it, or settling for a portion of it. Just because it falls off your CR doesn't mean it goes away. They can still try to collect on it, they just can't post to your CR.