Credit Reports

If a debt is sold to another company for collection does it take another 7 years from the transfer of the debt for it to come off your credit report?

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Wiki User
2009-10-13 04:22:31


Yes, it does. When it is sold, or they talk to you or a

payment/s are made it starts the 7 yrs over again. Also it depends

on the State you live in as to how long is the statute of


It seems that there is a lot of money to be made on old

collections. We will be seeing more and more people complain about

this as more and more collections appear on their reports.

The best thing to do is to try and settle on an amount that is

agreeable to you and to the collection agency. Get it in writing

with a signature from the person authorizing the settlement. The

letter should also have your name or the name on the account, and

the account number that is being settled. When you get that

letter--DON'T EVER THROW IT AWAY. Send your check with a COPY of

the letter registered mail. Your proof that you sent it.

Follow up in a few days to make sure they got your letter--once

you get confirmation--Keep that too. You need to play "collector"

and call until you have in your hand that they accepted the

settlement and will be submitting that information to the 3 credit

repositories. You may have to call several times before you get

such a letter. ( You can have them fax it first but always get the


Keep your "cool" during your conversation no matter what

happens--this does tend to aggravate the collector. Just as when

they call you and you get aggravated.

When you have that letter, you can do one of two things--wait

and see in 2 months that your credit refects that no balance is

owing OR you send a copy of the letter to all 3 repositories and

get it corrected right away instead of waiting.

You will keep all your originals -- "my opinion" -- for several

years. Unfortunately sometimes, these things keep popping up on the

credit--may times because the accounts get sold over and over.

I disagree. Once an original creditor sells the account to

collections they do not have another 7 yrs of reporting.

They can only report from, basically the date of last activity

on the ORIGINAL debt. yes you will get collectors that try to

re-age the account but it is illegal and you should call them on

it. If the original answer was true, you could never, ever "turn

over a new leaf" Hope that helped... btw, NEVER pay an old bill

without an agreement to delete the tradeline. IF, and I stress, IF

you pay them then that becomes the date of last activity and they

CAN report for 7 yrs from the last payment. DO NOT PAY WITHOUT an

agreement to delete the tradelines. NEVER agree to them marking as

"settled" its almost as bad as not paying for your score. Please

read other credit sites before you do anything.

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