Reselling of collection accounts

by Robin
(Phoenix, AZ)

I have several entries on my credit report from accounts where the first date of delinquency with the original debtor was well over seven years ago but the account has been sold in some instances several times to other collection agencies who list the date at which they bought the account as the date of the debt. I live in AZ and I didn't think this was allowed to "reset the clock" on the debt. Please help.

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Jul 05, 2010
 old collection accounts on credit reports
by: Gerri & Mary

Robin,

Collection accounts may be reported for 7 1/2 years from the date you first fell behind with the original creditor. This is true regardless of whether the collection account has been paid, and whether it has been sent to a new collection agency while your credit report may list the date of last activity or the date was placed for collection, it must also list the original date of delinquency. If it does not, or if the account is being reported after the 7 1/2 year time period, then you should definitely dispute it.

You will find instructions on our page:

How to Dispute Credit Report Mistakes

In addition, According to our sources, the statute of limitations for most consumer debts in Arizona is six years. So in addition to these accounts potentially being too old to appear on your credit reports (which is a matter of federal law), they may also be outside the statute of limitations under state law.

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