I just recently got hit with a derogatory from 14 yrs ago, can they do that??r=1218751500?

Question

When I was 18 I let a BP oil card go into collections. It has not been on my report in probably 7 years now. Now I am 32 and suddenly it shows up on my credit report? Being that I had no idea what it was since as an adult I never pay bills late, I called to see what the heck this was all about. They said It was for my unpaid BP Collection. I said that was 14 yrs ago, you cant do that. The lady told me that they had the right to reopen since it was sold to them in 12/2005? Can they really do that?

Answer 1

Being in mortgage banking, I can assure you they CAN NOT do that -  collections can only stay on your credit report for seven years from the ORIGINAL date they went into collections. After that time, it should automatically be dropped from your credit report, although it isn't unusual that you will have to request they do so. You did not have a credit agreement with the collection agency now hounding you and they do not have the right to report it to any of the credit bureaus once seven years gave expired. All you need to do is contact Experian, Equifax and Transunion, explain the situation and I am certain they will remove it from your record. That doesn't mean the collection agency will stop contacting you, but the important thing is that it is not on your credit report.

Answer 2

As already mentioned, they cannot legally do this as it is a blatant violation of the Fair Credit Reporting Act. File a written dispute with the credit bureaus stating this listing is obsolete. If the item is verified, send another letter to the collection agency demanding validation of this debt and specifically ask to know the date of first delinquency. After they receive your letter, file one last dispute with the credit bureaus to see if they'll verify again.

Send all correspondence via certified, return receipt mail. Keep copies of all letters and the green cards. If they do not remove this listing you can easily sue the collection agency and maybe even the credit bureau for posting this listing. The FCRA allows $1000 per violation plus damages and legal fees, so if you're denied credit or higher interest rates because of this tradeline, you can nail them for that too.

If you're uncomfortable filing on your own, talk to an NACA attorney, as they'll likely take the case on a contingency if you've laid the proper ground work.  

Answer 3

No they can't as a matter of fact it's a violation of the Fair Credit Reporting Act.

Derogatory accounts can only show for 7-years from the date of first delinquency period.

This is a zombie debt collector who bought your account for next to nothing and is just trying to scare you. Dispute this with all three credit bureaus as being long after the reporting time line and it will be removed.

Then you might want to consider taking the company to small claims court because like I said this is a violation and is punishable by a $1,000.00 fine.

Answer 4

Dispute the item with the credit bureaus.  And if the zombie collector actually calls trying to collect, send them a certified, return receipt letter telling them to cease and desist all contact.  The debt is probably past the Statute of Limitations (SOL), the timeframe to bring lawsuit, as well.