Collection items

[Anonymous]

I was wondering how many times can a collection agency sell your information in order to attempt to collect a past debt. Is the selling of information to another collection agency legal. And will I have another seven years before the items will be removed.

[Anonymous]

Typically a collection agency does not sell your information.  Instead, the credit grantor (bank) sells your obligation to some other creditor, who hires a new collection agency.  The new creditor can hire any number of collection agencies, or decide to sell your obligation again.

There's no limit to how many times your obligation can be sold, and 3 or 4 times is not unusual these days.

The statute of limitations on your debt in the state you live determines how long the creditor has to use the courts to enforce your debt, but even after that runs out a creditor can still contact you to try to collect it.

[Anonymous]

Junk debt buyers buy and sell old debt constantly. However, the seven year reporting period cannot be "restarted" when a new junk debt buyer buys your old debt...unless you make a payment to them.

When a junk debt buyer reports the debt to the credit reporting agencies, they may attempt to "reage" your debt by changing the last date of activity. This is illegal, and you need to immediately report this to the credit reporting agencies if it happens.

You'd think the credit reporting agencies would keep tabs on this illegal practice, since your reports and FICO scores are so important, but that's not what happens. The credit reporting agencies are in business to make money, not help average joe consumers have accurate reports, despite what they may tell you.