Can a collection agency reset theSOL and update my credit reports to reflect this for another 7 years?
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Can a collection agency reset theSOL and update my credit reports to reflect this for another 7 years?
I refused to pay a collection agency for an old utility bill I had years ago. The account kept billing after I moved out of apartment. In any case, it was scheduled to be removed from my credit reports in 2 months. However, after pulling a recent copy of my credit reports, I found that the same collection agency has reset it as recently being opened and it will be reported for another 7 years. Can they do this? I have not called them. But I may have sent them a letter with a settlement offer when I was cleaning up my credit. Could that be the reason?
Asked on August 19, 2011 Illinois
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Yes it can. Once an agreement to re-pay is made that re-starts the SOL. And unfortunately for you, you put this in writing. If this is the case then there really isn't much that you can do except wait another 7 years. Or work out a re-payment plan and negotiate that as part of the plan they clear you credit report. They will tell you that they can't but they can, or they may say yes but not do it. So get it in writing.
There is also the chance that what happened here is that they sought to illegally "re-age" your debt. This occurs when a collection agency tradeline on your credit report is reporting a newer one than your actual original creditor tradeline. This allows that negative information to remain on your credit report for longer than permitted by the Fair Credit Reporting Act (FCRA). However, since this all happened right after your settlement offer I would surmise that that is what triggered things.
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