# Can charged-off debts be bought and pursued again? **URL:** \ **Category:** Factual Questions\ **Created:** [February 22, 2006, 5:29am UTC](https://boards.straightdope.com/t/can-charged-off-debts-be-bought-and-pursued-again/345597 "2006-02-22T05:29:08Z")\ **Posts on this page:** 5\ **Page:** 2
**Author:** ![Gary\_Robson](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/gary_robson/32/3448_2.png) [@Gary\_Robson](https://boards.straightdope.com/u/Gary_Robson)\ **Post date:** [February 22, 2006, 9:04pm UTC](https://boards.straightdope.com/t/can-charged-off-debts-be-bought-and-pursued-again/345597/21 "2006-02-22T21:04:00Z")
> [@DrDeth](#): > > However, it’s 7 years from the time where you missed your payment/went late and thus SOMETIMES a credit grantor will try to “restart” the 7 years all over again if you start paying a very old debt. I ran this question by the vice president of our local branch of a large (American) bank. He said that it’s actually fairly common for a collection company to resell a charged-off debt a few months before the 7 years runs out. The new company then makes an attempt to collect, and reports it to the credit agencies as a new debt, starting the 7-year clock over again. The 7-year period, according to him, is from the last “activity” on the account. ---
**Author:** ![Gfactor](https://avatars.discourse-cdn.com/v4/letter/g/9de053/32.png) [@Gfactor](https://boards.straightdope.com/u/Gfactor)\ **Post date:** [February 22, 2006, 9:25pm UTC](https://boards.straightdope.com/t/can-charged-off-debts-be-bought-and-pursued-again/345597/22 "2006-02-22T21:25:01Z")
> [@InvisibleWombat](#): > > I ran this question by the vice president of our local branch of a large (American) bank. He said that it’s actually fairly common for a collection company to resell a charged-off debt a few months before the 7 years runs out. The new company then makes an attempt to collect, and reports it to the credit agencies as a new debt, starting the 7-year clock over again. The 7-year period, according to him, is from the last “activity” on the account. Sadly, he is wrong. > [@](#): > > © Running of reporting period. > > (1) In general. The 7-year period referred to in paragraphs (4) and (6)(2) of subsection (a) shall begin, with respect to any delinquent account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, **upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and loss, or similar action.** [http://www4.law.cornell.edu/uscode/html/uscode15/usc\_sec\_15\_00001681---c000-.html](http://www4.law.cornell.edu/uscode/html/uscode15/usc_sec_15_00001681---c000-.html) The statute was amended in 1997 to prohibit just this type of thing. > [@FTC Opinion Letter](#): > > 1. Is the reporting period extended if (A) the original creditor sells or transfers the account to another creditor, (B) the consumer responds to post-chargeoff collection efforts by making a payment on the debt, or © the consumer disputes the account with a CRA? Does it matter whether the 7-year period has expired when any of these events occurs? [http://www.ftc.gov/os/statutes/fcra/amason.htm](http://www.ftc.gov/os/statutes/fcra/amason.htm) The seven year period begins 180 days after the delinquency that led to the chargeoff. It does not restart. ---
**Author:** ![Gary\_Robson](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/gary_robson/32/3448_2.png) [@Gary\_Robson](https://boards.straightdope.com/u/Gary_Robson)\ **Post date:** [February 22, 2006, 11:00pm UTC](https://boards.straightdope.com/t/can-charged-off-debts-be-bought-and-pursued-again/345597/23 "2006-02-22T23:00:35Z")
> [@Gfactor](#): > > The statute was amended in 1997 to prohibit just this type of thing. He must have been going from obsolete information. Thanks much. ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [February 22, 2006, 11:04pm UTC](https://boards.straightdope.com/t/can-charged-off-debts-be-bought-and-pursued-again/345597/24 "2006-02-22T23:04:43Z")
> [@Gfactor](#): > > Sadly, he is wrong. > > [15 U.S. Code § 1681c - Requirements relating to information contained in consumer reports | U.S. Code | US Law | LII / Legal Information Institute](http://www4.law.cornell.edu/uscode/html/uscode15/usc_sec_15_00001681---c000-.html) > > The statute was amended in 1997 to prohibit just this type of thing. > > [http://www.ftc.gov/os/statutes/fcra/amason.htm](http://www.ftc.gov/os/statutes/fcra/amason.htm) > > The seven year period begins 180 days after the delinquency that led to the chargeoff. It does not restart. However, some creditors _do_ try this, and Experian \*et al \* won’t do anything about it unless you dispute the “derog”. Another reason why you have to check your credit report every so often! ---
**Author:** ![Mr.Slant](https://avatars.discourse-cdn.com/v4/letter/m/c57346/32.png) [@Mr.Slant](https://boards.straightdope.com/u/Mr.Slant)\ **Post date:** [February 23, 2006, 12:15am UTC](https://boards.straightdope.com/t/can-charged-off-debts-be-bought-and-pursued-again/345597/25 "2006-02-23T00:15:48Z")
DrDeth is dead on. Some collectors DO illegally report incorrect dates in their reporting. They open themselves up to civil litigation by doing so. I reckon all you have to do is prove that their improper reporting of said tradeline stopped you from getting a lower-rate refi on your mortgage, and sue for the difference in interest payments over thirty years. [Previous page](https://boards.straightdope.com/t/can-charged-off-debts-be-bought-and-pursued-again/345597.md?page=1)