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skullkap22

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Can a collection agency remove a collection from report and put it back on the report
roughly 3 months ago 5 collections disappeared from my credit report. (Hospital Bills, all from the same collection agency). I was shocked because they werent due for removal from my credit report for another 2 years. My Credit score greatly benefit from this. Well 2 weeks ago they magically reappear with the original placed for collection date. And the original estimated removal date. However the date update date has changed to 2 weeks ago. Making my credit score drop over 70 points. As if it was a new collections account.

I got me a secured credit card 6 months ago and have been making timely payments slowly raising my score and now this happens and im back to square one. Is this legal or not.

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Collection Account Response

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A credit collection can close an account then reopen it whenever they choose to. I had some medical collections come off of my credit but in the same week they added them on again. The reason they would do that is ( I am guessing) to update their files with new dates so when they have one of the agents call you it would appear as a new debt to them so they will be harder on you to attempt to collect. 

When one collection company closes your account and it shows up under another account, that is because it was sold from one collection agency to another. Each collection agency buys "leads" with your information, the older the debt, the less the account costs and the more likely you would be able to negotiate a lower payoff of the debt.

One thing that will never change is the date the file went into collections, so if it is sold to a new collection company that does not mean it will be removed 7 years from that date, the debt will be removed from your credit report based on the date of last activity, which would be a payment from you. You can get the most accurate information by calling Transunion directly and asking them about any debts on your credit report and when they should come off. 

One last thing, if you are going to pay off a collection account, before making any arrangements with them you must first ask them if they will provide you with a letter saying it is paid off and also ask them to remove it from your credit report. Some companies do nothave the authorization to remove the account from your credit report and others do, they should always provide you with a letter stating the debt is paid, whether it was paid in full or not will also be discolsed on the letter, but you will need that to provide to the credit bureaus to get the item removed if the company does not remove it on their own. But it is important to ask them to give you that letter because without it they can easily say you were on a payment arrangement and failed to make all of the payments and at that point the debt will renew and be able to stay on your credit report for 5-7 years from that date.

I hope this helps some of you. Good luck.  

Reply by
theonlyladya7

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Helpful to 1 out of 1 people

Enter Your Replyi am a specialist for credit repair. Please read and learn the credit laws. No matter who the accounts are sold to, they cannot leagally restart the time on the debt..7 to 10 years depending on the debt....and maybe less depending on the state you live in. Don't settle for that. There are laws that protect consumers....if you need more help or would like help with questions, message me on Facebook . Aisha Cansler or the company page Anything's Possible. I answer all questions for free because its all public information. Be safe everyone.

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This is can reinsertion and reaging of account. There are plently of resources here and on other credit forums that go into great detail about how this can be done, when it is illegal, and when it's a violation of the Fair Credit Reporting Act. Did you dispute the original tradelines with the Credit Bureaus? If so, they should have notified you in writing that these entries were being reinserted.

Reply by
JoshRupp81

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I have had the same thing happen to me. I disputed online with all three bureaus. It was all taken off. My debt is over a decade old! So my score went up greatly. I purcesed a credit card to help out. A couple months later a new collector with the same old bills reposted on my account. It droped my score again now Im back to sqaure one! I do not recall a letter in the mail from the Bureaus but I did recive an email. But my main question is how can they come back with the same bill just different collectors? Now I am trying to figure out how I will get a home for my family. This suck!

Reply by
williewifi

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It is called a reinsertion.  This site has good recommendaitons:

http://rebuildcreditscores.com/what-to-do-when-a-deleted-item-is-re-inserted/

I'm going to try disputing with the credit bureau in the way suggested by this site.

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Old debt reappeared

Helpful to 0 out of 1 people

Can a creditor remove a debt, which was 6 months ago, only to have it return back on my credit report but under another collection agency name? It dropped my credit score dramatically! Can they do this?

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