When a debt in collection is transferred to a new collector or lawyer does that become the new date from which it takes 7 years to remove?

Answer 1

Yes, sorry.

AnswerI disagree with the first answer. If that was the case then nothing would drop off from anyone's cred it after 7 years. A collection agency could just sell the account back and forth. 7 years and it's done. AnswerI disagree with the first answer and I definitely agree with the second answer. It's done with at 7 years. Whoever answered the question the first time, probably did not read the question correctly. AnswerI agree with the second and third answer. 7 years is the total time it takes for the item to come off. If on collection agency buys it from another, they have 7 years total to get this debt collected. Answeradd on to the 2nd 3rd and 4th answer, it is from the original date the item first went in to collection. For example if the date is 1/2000 original date of collection with the first company the date that it comes off will be 1/2007 plus 180 days.

The statute of limitations for credit accounts (varies by state) starts on date of last transaction with original creditor (not the collector). If you make a charge on Feb 2, 2000 and make no other transactions, statute of limitations begins 2/2/2000 (this begins the clock when original creditor can file lawsuit against you) and so original creditor or collector would be time barred from filing lawsuit to collect after Feb 2, 2007 (if s/l is 7 years).

A number of companies have purchased records of old debt from original creditors and attempt to collect AFTER statute of limitations has expired to file lawsuit. Any debt transaction older than 7 years cannot be listed on your credit report under the Fair Credit Reporting Act.

*Last caveat-if you make a payment on an old debt (i.e. the 2/2/2000 debt above), the clock is reset and the creditor then has an additional 7 years (depending on the state law) to file a lawsuit AND the debt can be listed on your credit report for an additional 7 years.