"Re-aging" old debt

[Breckbuster]

What is the name of your state?What is the name of your state? PA

I posted this question at the end of a different thread. I thought others may want to give their opinion.

It reguards collection agencies, and the practice of "re-aging" old debt that is uncollectible because they are beyond the sol. This "re-aging" looks like active current debt on your credit report and can destroy your credit just as its getting better!!

My question is about student loan debt. While they cannot be (easily) discharged through bankruptcy, the question is..

1) Is there a statutory period when they become "uncollectible"

2) How does FCRA apply to collection agencies who keep "re-aging" this type of debt. (with reguards to reporting?)??

Any thoughts?

 

[zippysgoddess]

I just had a similar experience with the reaging of two student loans. I filed a fraud dispute with the CRA telling them the dates the loans were defaulted and that I had not made any activity on the account since the year applicable. They contacted the agencies and of course they couldn't prove their dates of last activity were valid so the CRA removed them.

Make sure you are looking at the Date of Last Activity though, and not just a date that they placed it on your report, or the date they last updated the information. It is only the DOLA that is relevant here.

Just as with any other debt, they are limited to 7 years on your CRA.

They do however have the right to try to collect forever, there is no SOL on student loan debt regarding collection activity. They can try to collect forever and if you someday find yourself with a good job, they will want their share of your money.

Bankruptcy can only discharge them if you can prove total and undue hardship, if you have to make the payment. Since most agencies will work with you and take very small payments, just to try to recoup some of their money, this is almost impossible to prove.

They can also be discharged through full, and permanent disability. However, you have to be unable to work or attend school/training, ever again for this to apply.