Anyone know about collection agencies purchasing old accounts?

Question

I have a couple of depts that are supposed to fall off in 2009 going from the date where the first time the account became delinquent. But I've noticed on my credit report different collection agency companies showing up and it looks like they've brought my account to current. It was the original creditor that was on the report then a collection agency and now another different collection agency. I'm pretty sure I've reached Statue of Limitations on these accounts because their going to fall off in less than 2yrs. What can I do about this?Thanks ahead of time for all your answers much appreciated!!

Answer 1

There is only one seven year reporting cycle for how long defaults can stay on your credit file. This cycle begins on the date of the first missed payment that led to the major delinquency. This 7-year cycle cannot be restarted under any circumstances, regardless of how many collection agencies the debt goes through.

The statute of limitations is a completely separate concept from the 7-year reporting cycle. This refers to the time period that the collector can take legal action against you. This time period varies for each state. You can see what this is for your state by looking at the link below and looking under "Open" accounts.  FYI: the statute of limitations can be reset by recent payments.....If you are out of the statute of limitations, they can't do anything other than annoy/scare you into paying.

Answer 2

If you are in business do you NOT have an accountant or C P A?  surely you do.... Call him NOW let him earn his money!!

Answer 3

This is simply one agency selling the debt to another agency in hopes of finally collecting on it. Each time it changes hands the commisssion is less. It becomes like $0.30 on the dollar.

Acknowledging the debt verbally, writing or with a payment will re-set the state of limitations (7 yrs).

Dispute the item with the credit bureau, be sure to detail the date of when the account became 7 years old and eligible to be deleted. If they dont resond with 30 days, write the FTC and include a copy of the dispute letter.