Can debt collectors re-age an old debt? 5 things to know now
While debt collectors have broad authority to pursue unpaid balances, there are important limits to know.
Old debts sometimes resurface years later, often causing confusion about whether the debt has become new again. This issue is particularly concerning now, as more people are falling behind on payments and household debt remains at record levels.The practice of re-aging old debts is generally illegal. Under the Fair Credit Reporting Act, the date of first delinquency should determine how long a collection account can remain on a credit report, and it generally cannot be reset by selling the debt to another collector.
The Fair Debt Collection Practices Act also prohibits debt collectors from misrepresenting a debt's legal status, including treating a time-barred debt as though it's still enforceable.Very often, re-aging an old debt is revealed by a mismatched date, such as a discrepancy between the original creditor's charge-off date and the date reported by the current debt collector.
Sometimes, debt collectors may try to get borrowers to make a small payment on an old debt, thinking it will restart the statute of limitations. However, the statute of limitations varies by state and the type of debt, so it's important to understand the specific laws in your area.If you find a re-aged debt on your credit report, you can dispute it with the credit bureaus.
They are required to investigate the issue within 30 days. You can also send a written debt validation request to the debt collector, forcing them to document the debt's actual age and ownership. By being diligent and understanding your rights, you can prevent old debts from being improperly aged and protect your credit score and borrowing options.
Written by urgent.news from CBS News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
