How long can a creditor wait to report a bad debt?

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How long can a creditor wait to report a bad debt?

Can a small loan installment company report a charged off account after 6 year? The account was charged off and not reported then because the company was to small at the time of C/O. They have since been bought out and want to report it now. Can they?

Asked on May 16, 2012 under Bankruptcy Law, Oklahoma

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

It may be too late but do not (absolutely do not) reconfirm or affirm the debt. Immediately contact the credit reporting agencies on which this debt has been reported (you get one free credit report each year from the three credit reporting agencies). File the dispute instantaneously online and indicate that this debt is not owed and statute of limitations has run. Usually these types of disputes are resolved pretty quickly but be afraid if this company then sells your debt to another company, who tries to collect on the debt again. Immediately file another dispute. You may have to do this a while before it stops completely.


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