How to Stop Debt Reaging
Information in a credit report can determine whether or not someone gets housing, a loan, insurance or even a job. Negative information about an unpaid debt or collection account typically remains on a person's credit report for seven years, or 10 years in the case of bankruptcy. In many cases, debt collectors buy a delinquent account from the original creditor for pennies on the dollar in hopes of collecting some or all of the debt. Unscrupulous debt collectors often attempt to "re-age" a debt as a way to keep it on the credit report in hopes of collecting.
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Things You'll Need
- Copies of credit reports from the three major credit reporting agencies: Equifax, Experian and TransUnion.
Instructions
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Obtain copies of your credit report. Consumers in the United States are entitled to receive one free copy of their credit report each year from the three major credit reporting agencies; Equifax, Experian and TransUnion.com. You can find instructions on obtaining free copies of your credit report at www.freeannualcreditreport.com.
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Verify that a debt collector is not attempting to re-age old accounts. According to the Federal Trade Commission, information about a credit account is reported from the date of last activity. For a delinquent account, the date of last activity is typically 180 days from the time the account became delinquent.
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Dispute information older than 7 years or that is otherwise being reported incorrectly with each of the three credit reporting agencies. In most cases, you can dispute incorrect information online via the reporting agency's Web site, although occasionally you may have to download a dispute form and submit it by mail.
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File a complaint on any debt collector who attempts to re-age a debt by contacting the Federal Trade Commission as well as the Attorney General in the state where the debt collector is headquartered. The FTC has an online complaint form accessible at www.ftc.gov. Most state Attorneys' General have online complaint forms as well.
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Tips & Warnings
Remember that any arrangements you make with a debt collection agency regarding payment of an old debt will restart the collection clock and allow the debt collector to report the delinquency for an additional seven years.
