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I'm confused and need help. Let's say I have a debt with ACME, I don't pay it and they sell it to collection Company A If collection company A hangs onto a debt for 3 years, then sells it to company B, does that now mean that Company A and B are both on your credit report, and will it be 4 more years before Company A falls off, and 7 years before company B falls off? If that's the case, then the debt will never fall off of my credit report right? Or will it fall off from the date that ACME reports it?
The Fair Credit Reporting Act spells out that baddies, like a charge-off or collection, can remain for up to 7 to 7.5 years from the date of first delinquency (DOFD). In short, DOFD is the date you first went late and never recovered. So, when an OC like ACME reports a DOFD, and sells the debt to a CA, the CA must report the same DOFD. They cannot report it any longer than the OC would have reported.