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Question By
ewest305

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Extending the 7 year itch - collection agencies
I can't seem to get a straight answer for this question. If an account is sent for collections to a collection agency, a new account shows up on your credit report. I find this completely unfair but it is what it is. Does the new account inherit or extend the 7 year life span of the bad account?

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It's common, but completely illegal, for collection agencies to re-age debt merely because they've just acquired it. You can fight this: http://collectionagencydebt.blogspot.com/2012/01/collection-agency-re-aged-derogatory.html

One of the terrible flaws in the credit reporting system, however, is that if you contact the collection agency and agree to pay the debt, at that point they can legitimately re-age it, keeping it on your record much longer, even after you've paid it off.

Keep fighting. Send an "I'll sue you if you don't correct this" letter to the collection agencies themselves. Keep after the credit bureaus. If you can't get satisfaction that way, take your case to your state attorney general or even the federal government's new consumer protection agency. And good luck.

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More info

I am asking this question because I have tried to have a few collection accounts removed to no avail. The collection agencies effectively re-created the account and told the credit reporting agency that it was legal to do so. The credit reporting agency then puts a response that it follows the fair credit reporting act and that is was disputed by me. These are old accounts dating as far back as 2002. It seems collection agencies buy these bad debts and ruin your report in spite of the time that elapsed. It's unfair that the credit reporting agencies side with the collectors. They seem to be in the gutter together making lives miserable for the fun of it. :)

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