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View Diary: How to Deal with Collection Agencies, if you must (77 comments)

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    JerryNA

    It sounds about right in my experience:

    If they are right

    1. Clock starts on each tradeline (original after last payment- I think)

    2. After sale a new tradeline pops up (to a CA)

    3. This does not affect tho the SOL (selling the debt, I hope I am not confusing if say the SOL is 5 years, it doesn't matter if I sell in year 4, they still should only have 1 year to collect)

    a credit report shows all of your current credit accounts and your payment history on each..

    each entry is called a tradeline, and negative tradelines, can stay on your report for 7 years, like with a past due bill you paid late from 2003.

    But, something like Federal Judgements can stay on indefinately, especially in cases of criminal activity that caused the problem, or in the cases of Bankruptcy which can stay on as long as 10 years.

    one thing to keep in mind. a creditor normally has 7 years to collect on a debt, before it ages off your report.. In most cases the original creditor makes a few attempts over the next 6-12 months to contact you regarding your debt. If they don't get anything during that time, then the debt is sold to a 'collection agency' who;s sole mission in life is to take money from consumers that do not know the law..

    so, then a few months later you start getting calls from someone claiming to be from the original creditor, and as soon as they have verified you are the chump they are looking for, then they open a new tradeline and the collection clock starts all over again, and even though that bill you should have paid in 2003, would have dropped off in 2010, now you have a new line for the same debt, but this one started in 2005, so now you have 2 times the damage to your report, and another 2 years to put up with the calls. Every time that debt is sold, a new company will try to wrangle some cash out of you, and the moment, the very second they confirm you are who they are looking for, BINGO.. a new tradeline appears on your report, and the 7 year collection clock starts all over again.

    realize one thing.. NOTHING YOU DO AT THIS POINT WILL MAKE THIS A POSITIVE LINE ON YOUR CREDIT.

    even if you paid the line in full now, it would go to the collector that bought the debt, not the original creditor, and that COLLECTIONS line will still be there..

    stop talking to people about your debts over the phone,

    make every payment on time, every time.

    do all of your business in writing,

    the only reason you should ever be calling any creditor is to get a contact persons name, mailing addrss and direct dial telephone number.

    It is always easier to avoid new tradelines being created than it is to get a collection agents tradeline removed once it hits your file..

    give no info out over the phone unless you made the call and have an established relationship with the person you are calling. If they call you, or you arent sure if the person you are talking with can help you resolve the problem at hand, then HANG UP THE PHONE!

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