Debt Sold Again = Reset the 7 Year Clock?

[Anonymous]

Ask the original creditor in writing to whom they sold the account. Also, ask the current collectors for a letter or verification that they have been assigned to collect for this debt, and or if they have purchased it.

Hey that's one I haven't tried to do.  I guess I will be writing a letter this weekend to the originating creditor asking for who they sold the information for.

As for dealing with the CA, I still think it's just a bad idea, especially when the  CA is known for being corrupt.  Better safe than sorry.

[Anonymous]

I have an account that hit it's SOL in 2005, it was SOLD in 2004, just started showing up...I disputed with Credit Bureau and they said it stays for 10 years...why is this?  It isn't even a collectible account!

Should I try the OC as well to ask who they sold it to - is this not asking for problems?  I mean, it's been almost 10 years since DOLA...

Thanks!

[Anonymous]

6500 FDIC Consumer Protection Sec.605 Obsolete Information:

1. Placement for Collection

The term "placed for collection" means internal collection activity by the creditor, as well as placement with an outside collector, whichever occurs first. Sending the initial past due notices does not constitute "placement for collection'. Placement for collection occurs when dunning notices or other collection efforts are initiated.

The reporting period is not extended by assignment to another entity for further collection, or by a partial or full payment of the account. However, where a borrower brings his deliquent account to date and returns to his regular payment schedule, and later defaults again, a consumer reporting agency my disregard any collection activity with respect to the first deliquency and measure the reporting period from the date the account was placed for collection as a result of the borrower's ultimate default. A consumer's agreement with a collection agency can be treated as a new account that has its own seven year period.

What this simply means, is that the date your account goes into collection, internal or outsourced, that is the date that should legally be reported. If you pay in full, that does not extend the reporting period beyond 7 years. But if you return to your regular payment schedule, and then default, they can change the reporting date to reflect that. Also if you set up a new agreement with a Collection Agency, that can be treated as a new account,thus starting another 7 yr reporting period. So I aim to pay in full, if I desire to settle that debt. And of course by way of PFD.

[Anonymous]

Here's the thing...the account had been charged off, etc. and no payment since that 3/99 date...the account was SOLD in 2004, it is past anything so am I understanding this correctly that the Credit Bureau IS obligated to remove...they refused the first time I reported as "past SOL & reporting", they said it could stay on for 10 years!

[Anonymous]

From my understanding,(anyone feel free to correct me), a collection cannot be reported beyond 7yrs. I am clear I read the FCRA and the FDIC correctly. Even if the debt was charged off or resold, this does not change the legal reporting date;UnLess, you made new payment arrangements and then defaulted. It appears to me you will need to obtain proof (perhaps from the original creditor) in regards to the exact date that account went into collections. Be sure to find out if the account went into a "internal collection" department", before it was assigned to a collection agency. This is the date you will calculate the 7yr reporting period.

Once you obtain proof of the collection date, send a letter to the CA demanding removal. It should end there, if not send proof of collection date, a copy of letter to CA- to the FTC or your local Office of Attorney General,or Office of Consumer Affairs, and file a complaint under Fair Debt Collection Practices Act.

[Anonymous]

SOL is determined by state law - some states specify DOLA (which can re-set SOL)some DOFD (SOL does not re-set) - you need to dig thru your state's code (or ask the state AG Consumer Affairs Dept) to know which is applicable.  If the OC has charged-off the account the SOL canot re-set even with a payment.

[Anonymous]

beach123,

Remember that the SOL and the "Reporting Period" are two separate issues. The reporting period does not extend 7yrs due to a charge-off or because it is resold or reassigned. The SOL does vary from state to state. You need to be disputing the "reporting period" with the bureaus, and the sol with the CA. If I am correct, the "reporting period" is not extended beyond 7yrs, just because for example the SOL is 10yrs.

[Anonymous]

The SOL is 6 years in MN for CC's, and reporting 7 years...this time has come & gone, and I have never heard of who bought this account.  Back in 2005 right at SOL I called once to try to settle, they said NO (Target/Daytons), and that was it.  So, honestly, I'm not sure HOW they could have sold it in 2004 then, but I do have old reports and can show the DOFD or DOLA...3/99 and the odd thing was that back in 2004, and 2005, it did NOT show up on any credit reports as being transferred or sold...

What would you do?  Contact the OC and just ask who - I mean it doesn't matter if I can get the bureau to READ the stupid letter.  I disputed online that it was past reporting time...that's when Experian said to bad, another 10 years...if this is for real, people can damage credit ALL the time!

[Anonymous]

Well I always thought, that it was positive information that was reported for 10yrs. I think even judgements and bankruptcys have a longer reporting period, but not general collections. You really need to find out the dates those accounts went into collections. Once you are armed with that information, send it to the CRA along with your dispute letter. I think I've read on here that you should dispute it for "accuracy and completeness" or something to that affect. And also make a point in your letter that it has been well beyond 7 yrs, and you wish to have that account deleted immediately. Just be persistant and always reference the actual section of the FDCP, FDIC or FCRA in your letter.

Hope it works out (Oh and yes, I would ask the OC the date the account went into collection)

[Anonymous]

beach, look under public records. If they got a judgment within 6 years of DOLA or DOFD it stays on CR for 10 years!!

All baddies drop in 7-7.5 years      all accounts (closed) drop in 10 years.

IF there is no judgment....send a copy of old report to CRA....make sure you only send TU an old report from TU and the same with the other 2 CBs. That is your proof of DOFD.