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The debt being dropped from the credit report has no bearing on the collector's rights to pursue recovery of monies owed. The creditor/collector can contact the debtor seeking payment for as long as they choose. Also, state SOL's for debt(s) apply only to lawsuits, not collection procedures.

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18y ago
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12y ago

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Q: What legal right does a collection agency have to collect a debt after 7 years if the debt is no longer on your credit report?
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Where do you pay collection accounts that are reported on your credit report when the company is out of business or no longer handles the account that was reported for collection?

You pay the collection agency.


If a creditor uses a collection agency to collect on a debt do you still have to receive some kind of statement?

No. The collection agency will validate the amount for you if need be, but the creditor no longer owes you the courtesy of a statement.


Can a collection agency for a non-credit card-type bill hurt your credit rating?

Yes Once a collection account is reported to your credit history, its origin no longer matters. If money is owed and it gets listed with a credit reporting agency as a collection account, it affects the main factor in your credit score: Payment history. See www.myfico.com/CreditEducation/WhatsInYourScore.aspx for details of a FICO score.


If you refuse to pay a doctor referred by a 'if we do not win you do not pay' lawyer who took a car accident case will it hurt your credit?

Is the doctor going to turn the account over to a collection agency? A collection account would hurt your credit. Is the collection agency going to sell the account to another agency, thus extending the time period it shows on your credit report? If they do, it could hurt your credit for an even longer period of time.


Can a credit card company or debt collection agency sue you for an unpaid debt if you no longer live in the country where the debt was incurred?

Yes


What is the time limit imposed on a collection agency to validate a debt?

If you legally incurred the debt then you are responsible for it until it is paid. A company other than the company to which you were originally indebted may purchase the rights to your debt and you are responsible for paying them. There is no time limit on that debt. A collection agency can legally pursue you until the debt is paid in full. However, there is a time limit on the negative consequences of not paying the debt. In most circumstances that limit is seven years. Seven years from the time you became delinquent with your original creditor. Whether or not your debt was purchased by a collection agency, it should not be reported on your credit report or affect your credit score after seven years. The only time the debt could reappear is if you take an action on it. For example: In 1997 you applied for and received a store credit card and charged $1000 in merchandise. You did not pay the bill and after their attempts to collect the debt fail, the store sells your debt to a collection agency in 1998. That agency sells your debt to another agency in 2000. In the meantime, you pay all your bills on time and have an otherwise spotless credit history. In 2004 your $1000 debt will no longer appear on your credit report and your credit score will be higher because the old debt is no longer figured in the calculation. The collection agency is not doing anything illegal by contacting you regarding your debt. But it is no longer affecting your credit rating. In 2007 you pay $500 toward the debt. Your credit report would reflect you have a $500 debt to the collection agency and your credit score would drop. I hope this answered your question.


If a collection account was sold to another collection agency is it correct that they should both show up on your credit report as late payments?

When a collection agency sells your debt they no longer have any claim to your debt. It's like selling a car, once it is gone it is gone.


To file a bankruptcy do we input the credit card information or the collection agency information?

The safe way is to enter the credit card issuer information and under "additional parties" or "other notice," enter the collection agency info. The debt may have been sold to a collection agency, in which case the original creditor no longer owns the debt, but the new owner rarely notifies the debtor of the change, even though the law requires it.


How do you pay credit card charge-offs?

I am a professional debt collector and would say the best answer would be to either contact your credit card company and see to whom they sold the debt, as they no longer own the debt and therefore can not help you rectify the situation. The other option would be to pull a credit report on yourself and check to see if the collection agency is on your report, or if there was an inquiry on your report from a collection agency.


If you have already made an agreement with collection agency can you later renegotiate a lower payment amount due to income changes?

You can try, however if they agree then this will change the date on your credit report. Meaning: It will stay on your credit report even longer.


What happens if a debt collection agency can not validate a debt and they send you a letter hat they will no longer attempt to collect the debt?

Hello,Keep that letter safe somewhere and enjoy.You no longer owe that debt to them. :)Thanks!This is not Legal advice:)Make a copy of that letter and keep it in a safe place, also check your credit reports to make sure the debt is not listed on your report. If it is, send a copy of that letter to the credit bureau asking for that item to be removed as it is not valid.


Can a credit card company or debt collection agency sue you for an unpaid debt if you no longer live in the state where the debt was incurred?

Yes. Moving does not eliminate your legal obligations. If you could, you would not be able to use a credit card outside the state you live in.