Can collection agency re age debt?
Q: I wanted to know if a collection agency purchases a debt, can they re age the debt for a collection past 7 years from the original delinquency?
A: Collection agencies do it all the time. They re age a charged-off debt in order to freshen up credit reports with much newer derogatory records, thus causing severe harm to credit scores. The idea is to basically spook people and persuade them to pay. To re age debt in such a way is illegal. While you can not sue a debt collection agency for this violation right away, you can certainly complain to FTC and your State Attorney General.
You will need some proper documentation that supports your case. Only after an illegal re aging is verified, you will be able to sue. If you don't have any paper trail, contact credit reporting agencies and request the Fair Credit Reporting Act Compliance Date reported on the re aged debt account. Normally, the Date of Last Activity is the Compliance Date on the credit report. A negative record drops off of your credit report at around 7 years after the FCRA Compliance Date.
Thu Jan 20, 2011 05:01PM | Copyright: www.bad-credit-advisor.com | More in Relieving Debt | Comments (0)
Recent Entries
- Capital One Secured Credit Card to Improve Credit Score - Review
- How to get approved for mortgage - loan approval help
- Spouse average FICO credit score is higher?
- Why average credit score?
- Getting mortgage after bankruptcy - go FHA
- Debt settlement and how it affects credit score
- Debt settlement with Citibank
- Can I settle with credit card company with no late payments?
- Credit card limit lowered, credit score goes down
- Gold price will rise in 2011
