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When a debt comes off your credit report, the time is up, and it comes off,

is it legal for the collections company to sell that debt to another company?
We had a debt come off our reports in the beginning of Feb. But today a different collections company called. I didn't think it was legal!! Problem is, we are set to close on a house in a matter of 3 weeks, and if it goes back on our credit report, and they check it again, we will be denied the loan. Our agent told me today it's a possibility they will re pull the report. She told me before I got the message on the machine, I did not talk with the company. I'm glad I looked it up to see who it was before I called them back. I put the question in this section, even though it will probably be moved, because there is so much traffic here. I'm so freaked out!!!

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Asked by Anonymous at 6:25 PM on Mar. 25, 2011 in Money & Work

Answers (9)
  • It's a gray area. They are not allowed to sue you for the debt, but if they can convince you to make even a single payment of 1 cent on it, you start the 7 year timer all over again. They make their money from people who don't understand the law or their rights, and they make millions doing it. Tell them to pound sand, and tell them if they contact you again you'll report them to the Atty General's office (and if they do, follow through). They'll move on to an easier target.

    Answer by NotPanicking at 6:30 PM on Mar. 25, 2011

  • As long as the debt isn't paid anyone can buy it and report it on your credit. That best way to go about it is to settle the debt one way or another. or it could haunt you the rest of your life.

    Answer by meandrphoto at 6:31 PM on Mar. 25, 2011

  • Yes, they can sell it and that can go on for years.. You can try to have them "prove" it is your debt. If they can't prove it is yours they must remove it.. You can also dispute it through the credit agencies once it is back on your credit report.. Same thing, if the new Co. can't prove it is yours, it will be removed.. Do not agree to pay them anything or acknowledge the debt.. Even if you pay it will still show up as a collection on your credit.

    Answer by midnightmoma at 7:42 PM on Mar. 25, 2011

  • Sooo...what, it was a debt you owed and didn't pay? Yep, perfectly legal, pay your debts.

    Answer by Anonymous at 8:51 PM on Mar. 25, 2011

  • Anon, since we are military, and they were trying to charge us for breaking lease due to military PCS orders when they legally cannot, then NO, I will not pay it. We do not have to:) But, thanks.

    Comment by Anonymous (original poster) at 9:19 PM on Mar. 25, 2011

  • Yes they can sell it but check the statutes of limitations for your state. If you have not made a payment on the debt in a length of time longer than that Statutes of Limitations then you can send the new owners of the debt a letter stating the S. of L. are up and to stop contacting you and to write it off. You can find a copy of the letter online if you just google it. When they receive the letter they should send you one telling you they recognize the debt is no longer due. Make sure the Credit Report folks have a copy of that letter.

    Answer by admckenzie at 11:24 PM on Mar. 25, 2011

  • If you are military and had to break your lease, print out the law, and send it to the company requesting that they remove it from your report, and it is not a legal debt. Send a copy of your orders to show that the lease was broken due to a PCS.

    Answer by laird6372 at 7:39 AM on Mar. 26, 2011

  • since we are military, and they were trying to charge us for breaking lease due to military PCS orders when they legally cannot, then NO, I will not pay it. We do not have to:

    You need to contact them and tell them that. You will have to explain that to them or it will stay on your credit for another 7 years OR you can order your credit reports and dispute it, it will also allow you to put explaination on that debt as to why it is on there.


    Answer by matthewscandi at 8:33 AM on Mar. 26, 2011

  • It can't stay on there another 7 years. We haven't made a payment, haven't acknowledged the debt, and it's way past the SOL. The law is on our side. I am only worried it will cost us buying this house, as they mortgage company may pull our reports again just before closing. That's it. However, them putting it back on our reports is illegal. I have done research on this by now, and talked with our agent. I'm not as worried anymore. I know why it was sold, and what they are trying to do. Also, Clark Howard talked about this just this morning. And he said that in this case, the individual (like us) would be able to turn around and sue the collection agency if they put it back on the credit report, after we send them a letter. Which is what we are going to do.
    I know many get nasty towards those who owe debt, some debt should not be charged in the first place, AND I told the rental ppl of our orders in the first place. K?

    Comment by Anonymous (original poster) at 1:06 PM on Mar. 26, 2011

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