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DMCenvy

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Paying off collection accounts and reinstating other collections?
I am looking into paying off some collection accounts, but I have several accounts with the same creditor. They've been idle for a few years now, meaning, the collectors haven't hassled me about them for a long time and there are no judgements or collection attempts. Regardless, I want to get my credit back into shape and am wondering, if I start paying the accounts off one-by-one, more than likely by attempting a delete-for-pay, will all my collection accounts be re-aged and re-opened again if I tackle one collection account at a time? My fear is if I start sending DFP letters and payments to the collection agency that they will reinstate all of the accounts and start trying to collect on all of them and seek judgement, and I just don't want to wake the dead on all this right now. Any insight?

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You must be very careful when deciding to pay off collectors because you WILL re-age the accounts.  Check your state laws for statute of limitations to see if the creditors still have a right to bring suit, every state is different.  

The key date is the date of last activity - when was the last time you made a payment on that account?  Accounts can only remain on your report for 7 years from the date of last activity, so if you paid them today, then the 7 year "clock" is re-set for today.  If these accounts are nearing the 7 year mark, then just wait it out, they'll fall off your report.  

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DMCenvy

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Okay, thanks for the reply. I noticed I have a couple other accounts with different collection agancies. If I start with them and settle those accounts, do you think there would be any chance of the other agancy finding out and reopening those accounts, maybe through a credit inquiry or anything like that? I noticed on my recent credit report that some of the accounts have been recently "reported", one as recent as 12/2013, even though the account went into collections back in 04/2011. I'm guessing the date of 12/2013 would refresh the statute of limitations, and I would have to wait another five years (in my state) from that date?

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