Ressurecting Old Debt

[jeremymorris318]

What is the name of your state? California. I had accrued some debt when I used to live in Wisconsin. The specific account in question is in reference to an old Sears credit card account. I charged up my cards as a young dumb 18 year old, and failed to pay it off. Well, I have lived in California now for 5-6 years.

This Sears account was charged off according to my credit report. The account was opened on 04/97. I just recently saw this account appear on my credit report, with that same date, and then a new DLA of 05/04. I just started receiving notices from a collections company about this account. Sears sold it to them. But shouldn't this mark be erased as it is over 7 years old, Sears charged it off. How can they now sell it, and restart the collections process? Thanks in advance for any advice! )

 

[jazzy13]

Satutues for credit reporting agencies

The three major credit reporting agencies: Equifax, Experian, and Trans Union usually show a DLA. However, they must continue to report accurate information on any line of credit reported to them for seven years from the Date of First Deliquency.

Sears, according to your cardholder agreement does have the right to sell or assign your note (contract) or take other lawfull actions according to your state laws, before thier stautues run out. The new assignee now hold all the same rights to that contract.They normally will report on your credit report about 30-60 days after receiving your account.

Your cardholder agreement terms and conditions default cluase may stipulate that they can re-age the account in this way. If it does, it means this item will continue to appear on your credit report(s) in a deliquent status-if you choose not to pay it. However, your state s/o/l may prevent the new assignee from suing you; or may not. You may need an attorney in your local jurisdiction to research your states 'contracts' laws; as the new assignee may in fact now be able to assert a new s/o/l. Either way, if the item is now on your credit report, the 'charge off date" is irrelavant. I suggest that you contact toe credit reporting agency(s) that are reprting a new DLA and write a letter of dispute demanding to know what they show officially as the "Date of First Deliquency". Per the FCRA (fair credit reporting act) the CBRA's must remove the item 7 years after this date. < hte new assignee should NOT get another 7 years-unless your specific cardholder agreement stipulates this -in which case you agreed to it.

 

[shange500]

Take a look at my post under credit reports. It may help you.

 

[Ladynred]

Excuse me, but changing the DOLA of a delinquent debt in that manner is NEVER ALLOWED. It is a violation of the FCRA to re-age a debt UNLESS a payment has been made that would reflect ACCURATE 'activity' on the account.

Dergoatory tradelines can be reported for 7 years from the date of first delinqency that led to charge-off PLUS 180 days. In most cases, this equates to 7 years from the charge-off date, as most creditors will charge-off at the 180 days delinquent mark. However, some will charge off sooner, hence the establishment of a date-certain set out in the FCRA.

Do not miscontrue the 'date opened' as the 'date of last activity'. If the collection trade-line says 'date opened' is 5/04, that is the date the CA bought your account. If it truly says 5/04 is the date of last activity, then it has been illegally re-aged and you need to dispute it with the credit bureaus as such. If you have an older credit report that shows the ACCURATE DOLA from Sears, then you have solid proof of illegal behavior.


In addition, the Statute of Limitations for legal action to enforce collection of a debt in CA is FOUR YEARS, 3 in WA. The SOL for this old Sears account has expired in BOTH states. If you want to stop the collectors from bugging you, all you need to do is send them a cease and desist letter telling them never to contact you about the debt again as it is TIME BARRED. This is perfectly legal and its done every day.