If something is about to come off your credit report in 7 years can the colectin?

Question

can the colection adancy passes it to a other collection adancy does it start the 7 years all over again

Answer 1

7 years is counted from date of "first" delinquency filed by the original creditor. No matter how many times a debt is sold to how many collection agencies, nothing resets that period. If a credit card company reported your delinquent first in 12/2001, that date is always marked and 7 years start then. No matter who owns the account and who buys this debt and when, NOTHING RESETS THAT DATE. So collections cant reset it ever!

MORE EDIT : To Chris, who posted this question. You see what you started :)

EDIT : Marianne is wrong on this. By paying the account, the account becomes "current", i.e. date of last activity is current, the date reported delinquent will NEVER be reset. Statue of limitations (SOL) has nothing to do with credit reports. SOL simply allows a time frame where you can be sued in court and once that time passes, they have no legal grounds to collect the debt. Much like Double Jeopardy, you can't be tried for the same crime twice. Exempt from SOL is child support, IRS tax liens and student loans. They will come after you decades later if they can. Unsecured debt like credit cards, charge cards, mortgage, auto loans, medical and utility bills have to follow SOL. Per FRCA, any negative item 7 years or older marked delinquent or derogatory can be removed from your credit report, be current or not. Like I said, paying an old account makes it current, the date reported delinquent can't be reset and if collections do that, there is a lawsuit waiting for them for fraud. I have a collection item on one of my reports, reported in 2002, paid in 2007 and scheduled to come of in 2009, not 2014.

Answer 2

The date listed on your credit report is most likely the date of last activity or the date of charge off from the original creditor.  That tradeline has a life of 7 years.  If the original creditor sells it to a collection agency, the agency has the right to list it as a delinquent debt under the "Public Records" section of your credit report.  That tradeline also has a life of 7 years.  Each agency who has it CAN add it to your report, so the life of this one debt could be endless, but not in the way you originally thought.  

Now- want to know how to remedy this?  There are rights afforded to you under the FDCPA (Fair Debt Collection Practices Act).  These rights allow you to get a free copy of your credit report each year.  Request one from ALL 3 major bureaus (Equifax, TransUnion, and Experian) as they often are not the same. Get these in the mail, NOT online, as the paper versions come with dispute forms.  Any tradeline that appears more than once (ie, the original creditor and then subsequent collection agencies) has to be consolidated at the very least.  In most cases however, the debt will be removed all together, because once a dispute is filed, there is a deadline for verification (30 days) placed on the original creditor.  If they do not respond, or cannot provide copies of the ORIGINAL contract, then the debt has to be REMOVED! How many companies do you think have their ORIGINAL paperwork in office for accounts that are several years old and CHARGED OFF? Not very many.  It's a battle of wills.  If you are WILLing to take the time and effort to fill out the form, you WILL win!  Good Luck!

EDIT: please read the following excerpt in response to NK's edit, and then read the info via the url if you want verification.  Also note that I have addressed verification of the debt and how to proceed in my original answer.  One this one (at least) NK is wrong!

"WARNING! While the statute of limitations (SoL) is running or even after it's expired, making ANY payment or signing a promissory note can reset or restart (depends on your state law) the statute of limitations. Always ensure the debt is valid, and then check your state laws to see if the debt has a statute of limitations BEFORE taking any other action such as making a payment or signing an agreement to make payments."

Answer 3

I agree with crazyjester - N K is correct in everything he/she posted

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I also disagree with Mariannes "first" paragraph, though I agree with some of the other things she posted - that collectors are known to file suits on time barred debts, your rights in claiming an affirmative defense of SOL if they file on a time barred debt, your rights to dispute with the CRA's and request validation/verification from the collector, etc., etc.

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I disagree with much of what wishfulthinkin posted:

As N K stated, the reporting period starts with the "first" delinquency and NOTHING changes that date once the account is charged off. It does not start with the charge off or the DOLA (unless the DOLA date is the first delinquency date - which it rarely is).

The collector CANNOT legally list it under the Public Records section "unless" they sue and win.  

The rights afforded to you under the FDCPA concerns the actions of the collectors and not your rights in obtaining credit reports or disputing the information contained on them. That would fall under the FCRA. The free yearly reports fall under the FCRA's FACTA laws.

The time limit for the CRA's to investigate disputes from someone using a free FACTA report are 15 days longer than the time limit when reports that were purchased.

Purchased reports = 30 days..... free FACTA reports = 45 days (both ways: with an extra 5 days for the CRA's to mail the results).

That extra 15 days is a long time to give the collector to correct, verify or delete and it is one very good reason why a person should use reports they purchased to dispute from rather than the free FACTA reports.

Both the original creditor and the collector that currently has the account are allowed report at the same time. The original creditor "must" report a zero balance if the collector is reporting. No more than ONE collector can report the same debt at the same time.

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Again, N K gave a solid answer and I totally agree with it.

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edit to comment about wishfulthinkin's edit:

His/her edit concerns the resetting of the "states collecting SOL" and not the reaging of the "reporting period" that N K was speaking of.

wishfulthinkin is correct that IF the state allows it and IF the debtor, in one of those states, acknowledges the debt "in writing and with a signature" then the states collecting SOL could be reset.

But, as N K posted, the reporting period "still cannot" be reaged to report for a longer period than the original time limit.