Credit card debt sold to collection agency : Bad Credit Advisor

Credit card debt sold to collection agency

Q: I divorced almost 8 years ago and have had few bad things on my report from that time period, mainly credit card debt that was subsequently charged off, but nothing negative since. I am looking to buy a house next year. I reviewed my credit report and all the original charge offs should fall off in June or July as last active dates are of May of 2003. But a number of credit card debt charge offs were sold to 3rd party collectors, who reactivated the debt with a newer active date. Isn't the last active date from the original creditor? Is that called reaging? Do I have to wait for the original date to hit before I can start contacting the credit report companies to clear the new ones off my report and how long does it take to go through that process?

A: It is reaging. Charged off credit card debt sold to collection agency does not change the Date of First Delinquency (DOFD), based on which the bad accounts will fall off, no mater how many times collection agency or several update the status on your credit report. The accounts fall off based on the DOFD not the Date of Last Activity. The exact fall off date should be around DOFD + 180 days. So consider this date instead of May 2003. Charged off credit card debt sold routinely to collection agency, often more than one at the same time, and they can update the status every month, trying to pressure you to pay. It works more often than not, especially when you are looking for a loan and the lender wants you to pay off your collections. But no collection agency can touch DOFD. You should just wait till your derogatory accounts drop of your credit report and they will. If not, simple credit dispute letter should take care of it rather painlessly and quick.

Fri Oct 16, 2009 11:10AM by Tony | More in Credit Repair | Comments (0)

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