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Can collection agencies buy "old debt" and reknew them?

Discuss the role of Credit Reference Agencies

Can collection agencies buy "old debt" and reknew them?

Postby franklynn » Sat Aug 20, 2011 11:01 am

My husband and I have old debts that should be falling off our credit report.I noticed 2 of them were purchased by a collection agency so the same debts showed up on our credit reprot twice as negative information.Capital one was purchased by midland collection mgt i think its called and they say the debt was reknewed in 2010 when in reality the debt was charged off i 2005 and 2006 so it should e due to fall off at any time now. TMobile was purchased by an afni and they are basically stating the same thing. Both companies are offering settlemnets to be honest I am thinking about taking them, but at the same time isn't this unethical of them to reknw an old debt that would otherwise fall off our report in the next 6 months?
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Can collection agencies buy "old debt" and reknew them?

Postby mackinley » Sat Aug 20, 2011 11:04 am

There's half truths in what they say. What collection agencies do is well... collect bad debt. It showed up twice on your credit report because it was first reported as delinquent by cap one and the 2nd time as being sent to a collections agency. its not really renewed. cap one already "sold" your debt to the collection agency. That's what they do. they buy debts from financial institutions and try to "collect" from you sometimes masquerading as bank representatives. If you're going to settle with them take into consideration that the amount that collectors give you would be the amount you owed cap one with interest PLUS any fees that they want to tack on to it. That's where they earn money so be wary in dealing with any collection agencies that might contact you.
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Can collection agencies buy "old debt" and reknew them?

Postby mil » Sat Aug 20, 2011 11:16 am

It is supposed to fall off after 7 to 7 1/2 years of you doing nothing, no matter what they do. However, it can be shown 2 (or more) times until then. Also if you do anything, such as accepting a settlement, then the time period can start again from zero.

Do not accept a settlement. If you are not willing to pay the entire amount owed, without accepting a settlement, then do nothing until 2013. If it is still on your credit report in 2013, then dispute it in 2013 on the basis of it being more than 7 1/2 years since you last did anything yourself.
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Can collection agencies buy "old debt" and reknew them?

Postby chlodwig » Sat Aug 20, 2011 11:20 am

It is supposed to fall off after 7 to 7 1/2 years of you doing nothing, no matter what they do. However, it can be shown 2 (or more) times until then. Also if you do anything, such as accepting a settlement, then the time period can start again from zero.

Do not accept a settlement. If you are not willing to pay the entire amount owed, without accepting a settlement, then do nothing until 2013. If it is still on your credit report in 2013, then dispute it in 2013 on the basis of it being more than 7 1/2 years since you last did anything yourself.
This is True. But is is not unethical for you to not pay a dept no matter how long ago it was? As for your question about the renewing of old dept. Each state is different so I can not really give you an answer.

Take a look at these links. It looks like dike dept can follow you for ever if it is not charged off in a Bk 7/13(bankruptcy) But the sites could be wrong. worth a look.

STATUTE OF LIMITATIONS
http://www.carreonandassociates.com/articles/sol.htm

And then

http://www.bankrate.com/finance/debt/old-debt-can-follow-you-forever.aspx
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Can collection agencies buy "old debt" and reknew them?

Postby chane » Sat Aug 20, 2011 11:21 am

If it's past the SOL, do nothing but wait it out. If they still call, just call your phone co and have them put a block on the calls. If they send you letters, just black out your name and address and write " Return to sender".
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Can collection agencies buy "old debt" and reknew them?

Postby neo » Sat Aug 20, 2011 11:24 am

- Bad debts can stay on your credit report for up to 7.5 years, starting from the original date that you defaulted. This time period can never be restarted, even if you later make a payment on the account, or if a new collection agency buys the account. If this debt was charged off in 2005, then it will remain on your credit report until sometime in 2012....so they could put a notation on your credit report for the remainder of this time period....up until 2012. What they cannot do is "restart" a brand new cycle of bad credit by claiming that this is a brand new default and keep this on your credit report for another 7.5 years.
- The statute of limitations is a totally separate time period that refers to how long a creditor can successfully take you to court.Once the SOL expires, the debt becomes time barred and you don't have to pay it back. This time period ranges from 3-6 years for all most all states and this time period starts on the date of the last payment...it cannot be restarted by a new collection agency buying the account.
More on the SOL at this link: https://sites.google.com/site/creditdebtadviceonline/statute-of-limitations-on-credit-card-debts
- Midland is a notoriously awful firm, watch out: http://www.budhibbs.com/collectorpages/midland_credit_management.htm
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Can collection agencies buy "old debt" and reknew them?

Postby alai » Sat Aug 20, 2011 11:30 am

Debts age off your report 7.5 years from the date of default (your last payment to the company) You still have 18 mos on one and 12 mos on the other approx. Paying these old debts is NOT going to improve your credit score, and they are both most likely past the SOL to sue you, so really, unless you are trying to buy a house or get a loan for something and the lender is requiring you to clean up old debts, I wouldn't bother even with settlements, and IF you were to do a settlement, on the TMobile, I would try to get a Pay for Delete. The Capital One debt cannot be negotiated to be deleted since it was a revolving account. But, since both are so old, you may be able to start at about 25% of whatever the debt is and see if they would accept that as full payment. Realize though, that paying these is not going to change your credit score. The damage was done the first 2 years these accounts were in collections. All it would do is mark these 2 things paid. You would need to re establish credit in order to get your score to climb if you have not done that already. YOU actually have more of the power here than the collection company since they probably bought this old debt for pennies on the dollar. So, 25% is a pretty generous offer I think. NO, they cannot re age the debt and turn the clock back ... once this debt is 7.5 years old, and still showing you can dispute it with whatever credit bureau is showing it.

Again, unless you are trying to buy a house or get a loan, I would leave it be until it ages off. Put that money in the bank. LOL
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Can collection agencies buy "old debt" and reknew them?

Postby webb24 » Sat Aug 20, 2011 11:31 am

yes they can. Your Capital one date is now 2010
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