Collection and dating question?

[Anonymous]

I want to give specifics so that I can get the correct information.

In January 2001 I opened a low limit credit card  from first national bank for $250.00.

In March 2002 the account was charged off and closed. March 2002  is also the date of last activity as indicated on the credit report im looking at as I type this. The charge off amount total is $556.00

This has been on my report for 5 years, and obiviously even a low amount charge off like this has surely affected my score.

Today,,,,,,,5 years from last activity,,,,,,,,,I recieve a letter from MCM stating they have bought this debt from first national, now the total owed is $799.00(obviously their fees are included)

Now not only will the original lender(first national) show up on my report, but now the collection agency for this debt as well.(It hasnt yet, but im sure it will, now that I have this letter)

So I have a few questions:

1) Will the new collection on this account stay on my credit report  for 7 years from when they reported it , or from the date of delinquincy of the original lender?

2) Would I be better served to pay this debt, so that both accounts(the original , and the newly reported one) show up as paid?

3) If the clock doesnt start over, should I just ride it out and they will both fall off in two years?

I am real confused.  Thank you for taking the time to read this.

If possible , in your answers, can you include any legal references as far as credit going goes on collections and dating , etc so that I can site it , in any letters I write.

Thank you everyone!!!!

[Anonymous]

1) Will the new collection on this account stay on my credit report  for 7 years from when they reported it , or from the date of delinquincy of the original lender?  The date of last activity is from the origianl creditor.. Make sure you keep a copy of the credit report showing this in case of zombie activity.

2) Would I be better served to pay this debt, so that both accounts(the original , and the newly reported one) show up as paid? A paid chargeoff or colelction will not improve your score.  You can try to negotiate with the original creditor to pull the debt back from the CA which will remove that collection for the pay off amount.

3) If the clock doesnt start over, should I just ride it out and they will both fall off in two years?  You just got a new letter so if it hits your bureau, you can expect about a 50 point drop in score.  You are right they will completely disappear in two years so that will be a decion you will have to make.  Keep in mind.  Zombie debt has a way of rearing its head well down the road  you may be able to setle with the new collector before its added to your report for less than the origianl amount owed that way you'll probably never see it again.  This has been sold twice and more than likely for pennies on the dollar the second time.  Don't make any offersyou can't back up and whatever you do don't give personal info.  The 'This is an attempt to collect a debt' speil you hear at the beginning is very real and any info you share can and WILL be used against you.

I am real confused.  Thank you for taking the time to read this.

If possible , in your answers, can you include any legal references as far as credit going goes on collections and dating , etc so that I can site it , in any letters I write.

Thank you everyone!!!!

HTH

[Anonymous]

Thank you for taking the time to get me those answers, definately food for thought. I also found a statute that shows a collection agencies dates of reporting must mirror that of an original creditor?

I know you said to expect a 50 point drop once this new collection initially hits my bureaus, which  it is sure to.  My question is, is this an initial schock, so to speak to the report.  Does time allow a newly reported collection,,,,,,even though the account is old,,,,,,,to let a score creep back up, as long as my OPEN accounts remain in good standing.  Or am i just going to be blasted with a 50 point drop for the next two years?

Secondly,

I know you had suggested contacting the original creditor to see if they would buy back debt from CA, and then I can just pay them directly.  Have you know anyone who has had success doing this, or any tips for the process??

If I would have known the clock didnt start over if I paid a debt, I would have done so a few years ago, as to not let it fall into the hands of a secondary collector.  Live and learn I guess.

Thank you AGAIN for any help, as you seem to be the most competent person I have spoken to on these matters.

[Anonymous]

If you pay it off in full, it will not start over the onyl thing that woud cause that I believe is if you entered an arrangement and defaulted on that.  Not sure of the validity of that.  I paid a collection off two years ago that I forgat to include in BK and it was removed this year.  See it still went with the original date from the original collector.