Why would a creditor make these changes???

[Anonymous]

I got a scorewatch alert today that showed changes to an old verizon wireless chargeoff account. I am not sure why they would suddenly change these details. Is there any reason they would do this? Should I expect them to start pursuing something? It doesn't seem to have changed my score at all. I got a scorewatch alert with an increase of 5 points and no real explanation yesterday, but this change didn't happen until today...anny thoughts?

VERIZON WIRELESS  (XXXXXXXXXX0001)

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Account opened: 9/2003
Description: Collection account

	Previously reported	Newly reported
Balance:	$112	$112
Past due:	$112	$112
Status:	Bad Debt; Placed for collection;	At least 120 days or more than four payments past due
Last activity:	8/1/2004	8/1/2004
Description:	Charge off account Amount in high credit is original charge-off amount	Collection account

[IOBA]

It appears that it has been sold to collections.   

My suggestion is to look up SOL for cell phones in your state.  Pull together as much information about the account as you can and be prepared.

If you really owe Verizon the money, make arrangements to pay off the debt BEFORE a not so nice creditor starts messing with your life....

The debt can be reported for up to 7.5 yrs on your CR.

[RobertEG]

They are doing what is expected of them.  They are updating the status of OC account to notify you, or anyone else reviewing your CR, that the unpaid debt has been referred to a debt collector.  Since they are also still reporting the debt, that also indicates that the debt was not sold to a CA.

It also notice that a CA may soon be posted to your CR.

[Anonymous]

Ok, so if a collection agency does contact me, what should I do? The statute of limitations from what I can tell is 4 years. We are well outside of that. Can they even refer to collections, hence reporting a new collection at this point? My understanding about the best thing to do before this was to let it age off, but will a new CA change that? will the collection be considered new for scoring purposes, or will it still be considered a 6 year old negative (granted another 6 year old negative, but at least better than a new negative)?

[RobertEG]

Forget. for a minute, SOL considerations. 

Unless you reside in Texas, which has its own, unique debt statutes, then here is what I would do if a CA contacts you.

If they call you by phone, simply advise them that their call is considered an initial communication with you under FDCPA 809(a), and request formal written collection( dunning) notice from them within five days.  Say no more than that.

If they provide you dunning notice, with or without prior communicatoon with you, simply DV them within 30 days under FDCPA 809(b). That DV will requrie cessation of active collection activities.

Now, returning to SOL considerations, and assuming you dont reside in the lone star state. SOL is a legal defense that you can raise in court.  It is not a basis for barring reporting of a debt to a CRA.  You show up in court, prove it, and that is your deffense.  It is not a credit reporting issue.

The FCRA does not, in any manner, restirct any creditor from reporting debt to a CRA, regarless of any SOL issues.. Not now, not 7 years from now, or even 100 years from now.  The limitations of FCRA 605(a) apply only to the CRA's ability to include what has been reported in any  CR that they issue. 

[llecs]

Also, OP, look on your CRs if you pull them directly from the CRAs and look for soft inquiries. Many CAs will ping your credit first via a soft before sending anything.