What are my options if a debt buyer is re-aging my debt and reporting it to the credit bureaus?

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What are my options if a debt buyer is re-aging my debt and reporting it to the credit bureaus?

Back about 2-3 years ago, I defaulted on paying a bank money owed for overdrafting (a total of $427). I just recently obtained my credit report and it shows that I owe $403 to another company. I contacted them about it. They mentioned it was a purchased debt and that they were allowed to report it as a new debt on my report because they had just obtained it. Looking on the web this sounds a lot like re-aging debt, which if I understand correctly is illegal? What should my next steps be?

Asked on July 22, 2011 Ohio

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Many States in this country have laws prohibiting unfair collection practices by collection agencies. This could be an unfair collection practice. Was the debt you supposedly incurred for $427.00 ever paid off by you? If it was, then there should be no reference that you owe less than the original amount, $427 versus $403.

Was the $427 amount just a charge that the bank wanted you to pay and you did, or was there a lawsuit against you and a resulting judgment? If there was a judgment, was it paid off by you in full where you obtained a satisfaction of judgment for it?

In a nutshell, if the debt was paid off by you in full, the new collection company should not be seeking payment from you for what was satisfied. Its demand upon you could be illegal from a criminal standpoint and may be the basis for a civil lawsuit.

Good luck.

 


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