Re-aging is a very serious violation of the Fair Credit Reporting Act. Re-aging credit accounts causes older negative accounts to look more recent which can ruin your credit score.
Do not ignore any evidence of account re-aging.
No matter how many times a delinquent account transferred or sold to another debt collector, the FCRA Compliance Date cannot change.
The FCRA Compliance Date determines when the clock starts on the 7-year reporting of a delinquent account.
A debt collector re-aging an account can cause serious damage to your credit files. Re-aging would allow a collection account to remain on your credit reports in perpetuity. Take the following steps if you believe you are a victim of re-aging.
Step One
Request documentation from the credit reporting agencies if you believe an account has been re-aged. This will not be a dispute letter. The letter should be a simple request for the FCRA Compliance Date.
Example: I am inquiring about [account name] and [account number]. Please provide me with Fair Credit Reporting Act (FCRA) Compliance Date and the month and year this account will be deleted from my credit file.
[Note: When sending the letter, mail it to an address for consumer relations, not the same address where a dispute letter would be mailed. Although you can probably call to get this information, you want a confirmation in writing for your records.]Step Two
Once you receive confirmation of the FCRA Compliance Date check the dates of the original creditor (charged-off account) and the collection account associated with that debt. The collection account must match the FCRA Compliance Date of the original creditor. If the dates do not match, and the collection agency shows a more recent date, re-aging has occurred.
Step Three
Dispute the collection account. A simple letter will suffice as this may take more than one action.
Example: I am disputing the [collection agency name] and [account number]. The collection agency has re-aged this account according to the original creditor’s FCRA Compliance Date. Please delete this account immediately. (You may include in the letter supporting documentation if you received the correct FCRA Compliance Date from the credit reporting agencies in Step1).
[Note: Never ask for a correction of a negative account, your goal is to get any and all negative information deleted].Step Four
Remember, if you have a collection account on your credit reports and it has been a while since the collection agency has contacted you about the debt, disputing the debt may renew the collection agencies’ efforts to collect the debt. Perhaps this is not a concern; however, if it is a concern, check your state’s statute of limitations on the debt. If the statute of limitations has expired, you cannot be legally sued for the debt.
Step Five
Report Re-aging to the Federal Trade Commission (FTC) as this is a serious offense under the FCRA. In 2004, the Federal Trade Commission fined NCO Group $1.5 million for account re-aging. You should also report re-aging to your State’s Attorney General. In addition to making a big stink and creating a paper-trail in case you have to file a lawsuit, reporting these violations alerts the proper regulating authorities and causes them to act. They will not know about the illegal practices of debt collectors unless you inform them. Your tax dollars go into running these agencies so utilize them.
Step Six
Take legal action if your dispute efforts have not resolved the matter. You have several alternatives in taking legal action. You may be able to sue the collection agency for violating the FDCPA and the FCRA. You can definitely sue the credit reporting agency for violating the FCRA. Should you wish to hire an attorney, www.naca.net has many referrals to consumer attorneys who handle FCRA and FDCPA violations.
Step Seven
Finally, remember should you get a collection account deleted from your credit reports, the original creditor can still report the charged-off item until 7.5 year reporting period has expired.