Collection Account-Please HELP!

[mom of 2]

In 1998, I had a jewerly store send me to Collections for $107.00

Since then I have been waiting for my seventh year to come around to have it come off of my credit report. Late last year, I discovered my collection account had been purchased by another collection agency and is reporting it as a collection account as of 11/2004. Does this mean, this will stay on my report another seven years and should another agency get this account, will this be a never ending derrogitory account on my report. Please advise!

[Pam]

Moved to Credit Forum

[shop_free]

In 1998, I had a jewerly store send me to Collections for $107.00

Since then I have been waiting for my seventh year to come around to have it come off of my credit report. Late last year, I discovered my collection account had been purchased by another collection agency and is reporting it as a collection account as of 11/2004. Does this mean, this will stay on my report another seven years and should another agency get this account, will this be a never ending derrogitory account on my report. Please advise!

<{POST_SNAPBACK}>

 

No, the 7 yr reporting does not change.

[CargoJon]

In 1998, I had a jewerly store send me to Collections for $107.00

Since then I have been waiting for my seventh year to come around to have it come off of my credit report. Late last year, I discovered my collection account had been purchased by another collection agency and is reporting it as a collection account as of 11/2004. Does this mean, this will stay on my report another seven years and should another agency get this account, will this be a never ending derrogitory account on my report. Please advise!

<{POST_SNAPBACK}>

 

No, the 7 yr reporting does not change.

<{POST_SNAPBACK}>

 

But you might have to hold the CA to that...they might try to re-age so keep an eye on it...

[foolsmission]

TransUnion recently started (late Jan) using a field which reads "Estimated date that this item will be removed".

Might order one direct from TU to see whats being reported.

[Pavlov]

In 1998, I had a jewerly store send me to Collections for $107.00

Since then I have been waiting for my seventh year to come around to have it come off of my credit report. Late last year, I discovered my collection account had been purchased by another collection agency and is reporting it as a collection account as of 11/2004. Does this mean, this will stay on my report another seven years and should another agency get this account, will this be a never ending derrogitory account on my report. Please advise!

<{POST_SNAPBACK}>

 

Have you sent a Debt Validation letter to the CA which recently put the account back on to the report? Re aging an account, by the way, if they are guilty of that, is worth $1000 to you if you approach it the right way.....

[chiron]

In 1998... collections for $107.00... purchased by another collection agency...

1. If this account went to collection, then every time the account is re-sold, it can and will change the date of last activity, thereby resetting the 7-year clock. I am not aware of this being in any way illegal, nor do I know of a statute of limitations on such things. Since "how recent" has a half-life in terms of credit damage, a collection account riding from the dead will really slam your score (50-80 points is common) for the first few months after being resurrected.

 

2. However, the above is moot if you paid, settled, etc the collections account in '98 or since. For $100 or so, personally I would have paid it off long ago - maybe you did, too, but it seems unlikely... why would it have been resold as an active collection if you'd paid the bill? If it's your bill, pay the low-dollar thing, and get on with your life - otherwise it could indeed come back into perpetuity, and the potential problems you may have obtaining financing on a home, car, etc are certainly offset by a measly C-note.

 

3. In any event, waiting 7 years is not necessary for it to get dropped from your reports. Presuming you have not settled this account, I recommend you do so, and - this is the important part - try to negotiate with the current collections agency to receive a paid in full letter as part of the settlement.

 

4. However you go about settling the debt, once this is done, go grab a sample dispute letter from About.com or the FTC, etc, and dispute the item on your report(s). The collections accont ought to come off with some patience, though it might have left a many-years-long trail of destruction in its wake. Dispute each item on a one-item-per-letter basis, and I would imagine that in a few rounds of bureau cycles and possibly multiple letters/item, you'll be partying like it's 199... uh, 1997. It beats waiting another seven years.

 

5. If you don't feel confident or have little time to devote to removing this item from all three bureaus yourself, grab a credit repair firm (disclosure - I have a heavy bias towards credit repair) and for $200-500 depending on who you go through, this charge-off/collection info should wipe from your report in 4-6 months.

[flyboy]

In 1998... collections for $107.00... purchased by another collection agency...

1. If this account went to collection, then every time the account is re-sold, it can and will change the date of last activity, thereby resetting the 7-year clock. I am not aware of this being in any way illegal, nor do I know of a statute of limitations on such things. Since "how recent" has a half-life in terms of credit damage, a collection account riding from the dead will really slam your score (50-80 points is common) for the first few months after being resurrected.

 

2. However, the above is moot if you paid, settled, etc the collections account in '98 or since. For $100 or so, personally I would have paid it off long ago - maybe you did, too, but it seems unlikely... why would it have been resold as an active collection if you'd paid the bill? If it's your bill, pay the low-dollar thing, and get on with your life - otherwise it could indeed come back into perpetuity, and the potential problems you may have obtaining financing on a home, car, etc are certainly offset by a measly C-note.

 

3. In any event, waiting 7 years is not necessary for it to get dropped from your reports. Presuming you have not settled this account, I recommend you do so, and - this is the important part - try to negotiate with the current collections agency to receive a paid in full letter as part of the settlement.

 

4. However you go about settling the debt, once this is done, go grab a sample dispute letter from About.com or the FTC, etc, and dispute the item on your report(s). The collections accont ought to come off with some patience, though it might have left a many-years-long trail of destruction in its wake. Dispute each item on a one-item-per-letter basis, and I would imagine that in a few rounds of bureau cycles and possibly multiple letters/item, you'll be partying like it's 199... uh, 1997. It beats waiting another seven years.

 

5. If you don't feel confident or have little time to devote to removing this item from all three bureaus yourself, grab a credit repair firm (disclosure - I have a heavy bias towards credit repair) and for $200-500 depending on who you go through, this charge-off/collection info should wipe from your report in 4-6 months.

<{POST_SNAPBACK}>

 

 

 

Dear Chiron,

 

I'm a newbie too but IMHO from everything I've read, the fact that the debt is sold on should not reset the 7 year clock. The 7 year starts from the month of first default to the OC. Vets feel free to correct me if I'm wrong

 

Do you work for a CA by any chance?

[IHateSherman]

In 1998... collections for $107.00... purchased by another collection agency...

1. If this account went to collection, then every time the account is re-sold, it can and will change the date of last activity, thereby resetting the 7-year clock. I am not aware of this being in any way illegal, nor do I know of a statute of limitations on such things. Since "how recent" has a half-life in terms of credit damage, a collection account riding from the dead will really slam your score (50-80 points is common) for the first few months after being resurrected.

 

2. However, the above is moot if you paid, settled, etc the collections account in '98 or since. For $100 or so, personally I would have paid it off long ago - maybe you did, too, but it seems unlikely... why would it have been resold as an active collection if you'd paid the bill? If it's your bill, pay the low-dollar thing, and get on with your life - otherwise it could indeed come back into perpetuity, and the potential problems you may have obtaining financing on a home, car, etc are certainly offset by a measly C-note.

 

3. In any event, waiting 7 years is not necessary for it to get dropped from your reports. Presuming you have not settled this account, I recommend you do so, and - this is the important part - try to negotiate with the current collections agency to receive a paid in full letter as part of the settlement.

 

4. However you go about settling the debt, once this is done, go grab a sample dispute letter from About.com or the FTC, etc, and dispute the item on your report(s). The collections accont ought to come off with some patience, though it might have left a many-years-long trail of destruction in its wake. Dispute each item on a one-item-per-letter basis, and I would imagine that in a few rounds of bureau cycles and possibly multiple letters/item, you'll be partying like it's 199... uh, 1997. It beats waiting another seven years.

 

5. If you don't feel confident or have little time to devote to removing this item from all three bureaus yourself, grab a credit repair firm (disclosure - I have a heavy bias towards credit repair) and for $200-500 depending on who you go through, this charge-off/collection info should wipe from your report in 4-6 months.

<{POST_SNAPBACK}>

 

That's some lousy advice.

I say dispute as "not mine". If it stays on, call the CRAs and find out when it's supposed to fall off and proceed from there. Don't pay them anything!

Edited March 1, 2005 by IHateSherman

[CargoJon]

In 1998... collections for $107.00... purchased by another collection agency...

1. If this account went to collection, then every time the account is re-sold, it can and will change the date of last activity, thereby resetting the 7-year clock. I am not aware of this being in any way illegal, nor do I know of a statute of limitations on such things. Since "how recent" has a half-life in terms of credit damage, a collection account riding from the dead will really slam your score (50-80 points is common) for the first few months after being resurrected.

 

2. However, the above is moot if you paid, settled, etc the collections account in '98 or since. For $100 or so, personally I would have paid it off long ago - maybe you did, too, but it seems unlikely... why would it have been resold as an active collection if you'd paid the bill? If it's your bill, pay the low-dollar thing, and get on with your life - otherwise it could indeed come back into perpetuity, and the potential problems you may have obtaining financing on a home, car, etc are certainly offset by a measly C-note.

 

3. In any event, waiting 7 years is not necessary for it to get dropped from your reports. Presuming you have not settled this account, I recommend you do so, and - this is the important part - try to negotiate with the current collections agency to receive a paid in full letter as part of the settlement.

 

4. However you go about settling the debt, once this is done, go grab a sample dispute letter from About.com or the FTC, etc, and dispute the item on your report(s). The collections accont ought to come off with some patience, though it might have left a many-years-long trail of destruction in its wake. Dispute each item on a one-item-per-letter basis, and I would imagine that in a few rounds of bureau cycles and possibly multiple letters/item, you'll be partying like it's 199... uh, 1997. It beats waiting another seven years.

 

5. If you don't feel confident or have little time to devote to removing this item from all three bureaus yourself, grab a credit repair firm (disclosure - I have a heavy bias towards credit repair) and for $200-500 depending on who you go through, this charge-off/collection info should wipe from your report in 4-6 months.

<{POST_SNAPBACK}>

 

This advice is absolutely horrible. Frankly it sounds like someone who works for a CA. They CANNOT keep re-aging it, re-reporting it, etc. Do NOT pay it, as it's long past its statute of limitations...

Frankly, #4 is the only answer that doesn't contain heinous inaccuracies. And frankly, it's horribly incomplete at best. If you follow the advice put up by long-time members of this board, you'll be fine. Lots of information in the newbie section, as well as many capable folks here to give you some real advice. Unfortunately, 1-5 up there isn't good advice at all.

[flacorps]

http://moneycentral.msn.com/content/Saving...debt/P74812.asp

[keepmine]

Sounds like Chiron was advising NCO.

 

http://www.ftc.gov/opa/2004/05/ncogroup.htm

 

The provision helps ensure that outdated debts – debts that are beyond this seven-year reporting period – do not appear on a consumer’s credit report. Violations of this provision of the FCRA are subject to civil penalties of $2,500 per violation.

 

The FTC charges that NCO reported accounts using later-than-actual delinquency dates. Reporting later-than-actual dates may cause negative information to remain in a consumer’s credit file beyond the seven-year reporting period permitted by the FCRA for most information. When this occurs, consumers’ credit scores may be lowered, possibly resulting in their rejection for credit or their having to pay a higher interest rate.

[pryan67]

In 1998... collections for $107.00... purchased by another collection agency...

1. If this account went to collection, then every time the account is re-sold, it can and will change the date of last activity, thereby resetting the 7-year clock. I am not aware of this being in any way illegal, nor do I know of a statute of limitations on such things. Since "how recent" has a half-life in terms of credit damage, a collection account riding from the dead will really slam your score (50-80 points is common) for the first few months after being resurrected.

 

 

 

what have you been smoking? it does NOT allowed to be reset...the CA you seem to work for is likely breaking the law when they do this (not surprising) If you don't work for a CA...I apologize...and you need to read a LOT more here

 

2. However, the above is moot if you paid, settled, etc the collections account in '98 or since.  For $100 or so, personally I would have paid it off long ago - maybe you did, too, but it seems unlikely... why would it have been resold as an active collection if you'd paid the bill?  If it's your bill, pay the low-dollar thing, and get on with your life - otherwise it could indeed come back into perpetuity, and the potential problems you may have obtaining financing on a home, car, etc are certainly offset by a measly C-note.

 

it would have been resold because many CAs don't follow the law...

 

and do NOT pay ANY CA unless they can FULLY validate...it's the law...THEY have to folow it

 

3. In any event, waiting 7 years is not necessary for it to get dropped from your reports.  Presuming you have not settled this account, I recommend you do so, and - this is the important part - try to negotiate with the current collections agency to receive a paid in full letter as part of the settlement.

 

a paid in full letter will do NOTHING for your credit report...all it will do is make it so it's marked "paid collection", which will likely hurt your score more than if you DON'T pay it

 

4. However you go about settling the debt, once this is done, go grab a sample dispute letter from About.com or the FTC, etc, and dispute the item on your report(s).  The collections accont ought to come off with some patience, though it might have left a many-years-long trail of destruction in its wake.  Dispute each item on a one-item-per-letter basis, and I would imagine that in a few rounds of bureau cycles and possibly multiple letters/item, you'll be partying like it's 199... uh, 1997.  It beats waiting another seven years. 

 

or, follow the instructions here...do NOT dispute only one at time...that serves no real purpose, other than taking more time and money...don't use form letters...write your own using sample letters as a template...

5. If you don't feel confident or have little time to devote to removing this item from all three bureaus yourself, grab a credit repair firm (disclosure - I have a heavy bias towards credit repair) and for $200-500 depending on who you go through, this charge-off/collection info should wipe from your report in 4-6 months.

<{POST_SNAPBACK}>

 

 

DO NOT USE A CREDIT REPAIR FIRM!!!!! Perhaps you work or DID work for one, that would explain your bias which I appreciate you disclosing....HOWEVER...if so, please let me know which one it was, so I can steer people away from it, since you've given TERRIBLE and WRONG advice here...

[CargoJon]

I was hoping to God Pryan would see this thread...

[Marty716]

TransUnion recently started (late Jan) using a field which reads "Estimated date that this item will be removed".

Might order one direct from TU to see whats being reported.

<{POST_SNAPBACK}>

I don't see that field on my TU report, dated 2/20/05.

[flyboy]

I was hoping to God Pryan would see this thread...

<{POST_SNAPBACK}>

 

Me too - I'm a newbie but have already noticed that Pryan (along with a couple of others) can always be depended upon for straightforward, no nonsense advice. (belated congrats on the 10K posting Pryan)

 

Keep up the good work!!

[Pavlov]

I was hoping to God Pryan would see this thread...

 

Pryan sees everything....like....like....GOD! lol! What in the world would we do without him? A truly valuable resource for all of us.

 

This Chiron poster has been silent since the now infamous posting. S/he has only one post. I wonder if Chiron will ever sign on again?

 

I am pleased we have all the expert advice to contradict the rubbish Chiron posted. I am going to stay out of it, but it seems like the advice might have been the worst I have ever seen about " credit repair ". Unless, of course, I include the stuff some CRA's put out there into the minds of the public.

Edited March 1, 2005 by tallsaltlake

[CargoJon]

I was hoping to God Pryan would see this thread...

 

Pryan sees everything....like....like....GOD! lol! What in the world would we do without him? A truly valuable resource for all of us.

 

This Chiron poster has been silent since the now infamous posting. S/he has only one post. I wonder if Chiron will ever sign on again?

 

I am pleased we have all the expert advice to contradict the rubbish Chiron posted. I am going to stay out of it, but it seems like the advice might have been the worst I have ever seen about " credit repair ". Unless, of course, I include the stuff some CRA's put out there into the minds of the public.

<{POST_SNAPBACK}>

 

Breeze, LKH, or Radi8 oughta trace that IP from Chiron and see where it came from....

[Pavlov]

Breeze, LKH, or Radi8 oughta trace that IP from Chiron and see where it came from....

 

I wondered if that was possible. It seems like a good idea to find out more, since we are getting so much publicity the past couple of months.

[hoapres]

In 1998... collections for $107.00... purchased by another collection agency...

1. If this account went to collection, then every time the account is re-sold, it can and will change the date of last activity, thereby resetting the 7-year clock. I am not aware of this being in any way illegal, nor do I know of a statute of limitations on such things. Since "how recent" has a half-life in terms of credit damage, a collection account riding from the dead will really slam your score (50-80 points is common) for the first few months after being resurrected.

 

2. However, the above is moot if you paid, settled, etc the collections account in '98 or since. For $100 or so, personally I would have paid it off long ago - maybe you did, too, but it seems unlikely... why would it have been resold as an active collection if you'd paid the bill? If it's your bill, pay the low-dollar thing, and get on with your life - otherwise it could indeed come back into perpetuity, and the potential problems you may have obtaining financing on a home, car, etc are certainly offset by a measly C-note.

 

3. In any event, waiting 7 years is not necessary for it to get dropped from your reports. Presuming you have not settled this account, I recommend you do so, and - this is the important part - try to negotiate with the current collections agency to receive a paid in full letter as part of the settlement.

 

4. However you go about settling the debt, once this is done, go grab a sample dispute letter from About.com or the FTC, etc, and dispute the item on your report(s). The collections accont ought to come off with some patience, though it might have left a many-years-long trail of destruction in its wake. Dispute each item on a one-item-per-letter basis, and I would imagine that in a few rounds of bureau cycles and possibly multiple letters/item, you'll be partying like it's 199... uh, 1997. It beats waiting another seven years.

 

5. If you don't feel confident or have little time to devote to removing this item from all three bureaus yourself, grab a credit repair firm (disclosure - I have a heavy bias towards credit repair) and for $200-500 depending on who you go through, this charge-off/collection info should wipe from your report in 4-6 months.

<{POST_SNAPBACK}>

 

As probably everyone will tell you, on the items above

 

1. Sorry, the 7 year clock does not re-set when the account is sold. The 1997 FCRA amendments actually set in stone the beginning of the clock.

 

2. Sounds like preaching. The simple fact is that if the account is over 7 years old then the account should not be reported. You may have to go through the hoops to get an improperly re-aged account off your CR.

 

3. Forget this advice. If I had a CA after me then at a minimum I would do a DV.

 

4. Dispute as obsolete which is immaterial to you paying the debt.

 

5. Do it yourself, you don't need a credit repair firm.

[amszyh]

If the debt is yours, I would settle it, but get a Pay for Delete before you send any money.

[joshbgosh]

If the debt is yours, I would settle it, but get a Pay for Delete before you send any money.

<{POST_SNAPBACK}>

 

 

Why are you offering advice and you don't know what you are talking about?

 

YOu and Chiron must work for the same company.

 

DO NOT take this advice or the advice of Chiron neither have a clue what they are talking about, that or they work for CA's

Edited March 1, 2005 by joshbgosh

[chiron]

This Chiron poster has been silent since the now infamous posting. S/he has only one post. I wonder if Chiron will ever sign on again?

Hi all - I meant no harm in my post, and therefore my apologies for offering what consensus has declared was very poor advice. My silence to date has in part been to allow others to give their opinions and assistance to the poster, that being the point, as opposed to distracting the knowledgeable among you with further ad hominem attacks on a self-confessed newbie. I've got no choice but to assume responsibility for a bad post, and am glad the original thread was answered with better and more complete advice from the rest of you.

 

While your responses as concerns me and my "help" were not terribly positive, in taking the good from them, it allows me to learn and grow with this forum, which I perhaps incorrectly assume is part of its purpose. Obviously I will in the future attempt to better-research any "advice" I provide, so that I don't come off as a glaring salamander again - lesson learned.

 

Feel free to trace my IP - it's not cloaked or anything, and you'll find I don't work for a CRA/CA if you really care enough to dig into my personal life, which I assure you is quite dull.

[Pavlov]

If the debt is yours, I would settle it, but get a Pay for Delete before you send any money.

<{POST_SNAPBACK}>

 

 

Why are you offering advice and you don't know what you are talking about?

 

YOu and Chiron must work for the same company.

 

DO NOT take this advice or the advice of Chiron neither have a clue what they are talking about, that or they work for CA's

<{POST_SNAPBACK}>

 

This is becoming interesting. I am wondering if we have some new collectors in our midst....again? Can we also trace amszyh?

Edited March 1, 2005 by tallsaltlake

[amszyh]

If the debt is yours, I would settle it, but get a Pay for Delete before you send any money.

<{POST_SNAPBACK}>

 

 

Why are you offering advice and you don't know what you are talking about?

 

YOu and Chiron must work for the same company.

 

DO NOT take this advice or the advice of Chiron neither have a clue what they are talking about, that or they work for CA's

 

Someone please BAN these two trolls!

<{POST_SNAPBACK}>

 

I haven't done anything wrong or called anyone names; I have just given the best advice IMHO. What's wrong with paying of your debts if they're yours?