Old account flagged as new collection

[Anonymous]

I was just notified that an old past due account(3-4years) was just flagged by a new collection agency. It seems like it is being reported as a new debt. I have not spoke to nor made any payments whatsoever regarding this old debt. Does anyone know why this happened?? It lowered my score big time as i have been working hard to build my credit score back up. It is so frustrating. There is a small chance I answered a phone call from unknown number and nobody responded when I said hello. Does that allow the debt to restart? Any help or info would be greatly appreciated 

[Remedios]

Hi and welcome to the forums @Anonymous 

Each time debt gets resold and new CA reports, this happens. If this debt gets sold 9 months from now, that will be the date they are using.

That's one of the reasons collections "hurt" in addition to signaling debt remains unpaid. Everytime is first time.

However, that date is not indicative of removal date, which is no longer than 7.5 years from the initial delinquency, and CA has up 60 days (I belive, a little fuzzy on number of days) to notify CRA of the DOFD

If you're curious when the account will finally be off your reports, or when DOFD happened, grab a copy of free annual credit report. 

[Anonymous]

It is possible that the debt was sold to a new collection company.

Check the statute of limitations for your type of debt for your state.

Never answer any call or answer any mail from a collection company. They are dishonest and unscrupilous.

You may be able to dispute this. But do it in writing using certified mail to the CB. use a Blue pen and write it out by hand. 

Otherwise the CB will have a machine read and answer it. You want a human to exert effort.

[Remedios]

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@Anonymous wrote:

It is possible that the debt was sold to a new collection company.

Check the statute of limitations for your type of debt for your state.

Never answer any call or answer any mail from a collection company. They are dishonest and unscrupilous.

You may be able to dispute this. But do it in writing using certified mail to the CB. use a Blue pen and write it out by hand. 

Otherwise the CB will have a machine read and answer it. You want a human to exert effort and gave in to your demand to have it removed.

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SOL is not synonymous with reporting period. OP stated age of the debt, it's still very much reportable. 

Always look at mail from CA. If people did that, there would be 70% less litigation.  Paying legitimate debt, same.

Giving advice to just dispute is really not a good advice.

While it works for a small minority, more often than not, collection accounts get verified and score tanks more. 

If dispute was all it took, no one would have credit problems, and there would be no collection agencies left, or negative accounts of any kind. 

OP never mentioned account being past reporting period. If anything, they specifically stated 3-4 years. 

Plenty of time left for it to get sold several times, and cause damage each time. 

[Anonymous]

Thank you so much for the help. I really appreciate it. This helped me understand what was going on. 

[Iusedtolurk]

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@Anonymous wrote:

I was just notified that an old past due account(3-4years) was just flagged by a new collection agency. It seems like it is being reported as a new debt. I have not spoke to nor made any payments whatsoever regarding this old debt. Does anyone know why this happened?? It lowered my score big time as i have been working hard to build my credit score back up. It is so frustrating. There is a small chance I answered a phone call from unknown number and nobody responded when I said hello. Does that allow the debt to restart? Any help or info would be greatly appreciated 

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Old debts can be sold and resold and sold again and each time the new collection agency will report the date they acquired the debt.

That does not change the original DATE OF FIRST DELIQUENCY which determines how long it will be on your credit report (usually 7 years from DOFD but could go 7.5 years).

Find out your Original Creditor DOFD from your credit report then you will know exactly when it is due to drop off.

If the debt is 3 or 4 years old then it is due to fall off in 4 or 3 years from now.

The older it gets the less negative impact it has on your credit score.

If you are trying to rebuild you may want to consider a PAY-FOR-DELETE which is making a deal with the collection agency for a reduced sum they will accept.  Always get it in writing! The PFD will save you from waiting so many years to get points back to raise your credit score and other negative ramifications for having a collection reporting.

Different collection agencies have different policies so you may want to check on the particular CA you will be dealing with.