Old Collection Account

[steve2327]

I have a friend who is trying to purchase a home. 8 or 9 years ago she
> had a car repossessed. it was turned over to a collection agency but no
> payments were made on the account and it came off the Credit Report earlier this
> year. The account has been sold to a different collection company who is now reporting it on her credit report.

This account is past the 4 year California Statute of limitations. Can they do this legally? How can we have it removed from the Credit Report

It can be reported for seven years but cannot be collected if it is past the SOL in the state where the debt was made or where you live.

The length of time derogatory information may show in your credit file is established by the Fair Credit Reporting Act at 7 years. If a creditor were to change this date it would be a violation of the FCRA

Protest it with the credit report companies and they will normally remove it. Sue the collection agency in small claims if need be.

I went to the Internet and found many complaints against NCO Financial Institution and many other NCO co. across the nation for misconduct on credit reports. Just like they did to me.

The new collection agency was required to send, via mail, a notice of the debt and put in writing the alleged owner of the debt had 30 days to dispute the validity.

Secondly, because the statute of limitations has run out, the item has been fraudulently inserted on the Credit Report.

Send a letter to the collection agency who has it listed and ask them for VALIDATION (not to be confused with verification) of the debt. This means they have to prove who the original creditor is, which they will not be able to do, since they bought the debt from a previous collection agency. Send the request certified, return receipt requested (you can find sample letters if you google sample validation of debt letters), and do NOT sign the letter. Simply type your name after "regards", or "sincerely". Never give collections agencies your actual signature. Go to the post office with the letter unopened, and write the certified number on the letter, then seal it in the envelope and mail it certified.

They have 30 days to respond. If they do not respond in 30 days, by law it must be removed. Also, write to the Credit Reporting Bureau(s) where the item is listed and inform them of your actions and what steps you are taking to have this debt validated.

You may also wish to contact a Consumer Protection attorney, many of whom will take on cases pro bono, meaning they get paid only if you do. You CAN sue this collection agency if they refuse to remove this item after it has been proven that it must be removed by law.