Re: Gulf State Credit - What's the worst they can do?

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Posted by Bob on June 06, 2001 at 17:18:13:

In Reply to: Re: Gulf State Credit - What's the worst they can do? posted by Zeus on June 06, 2001 at 13:49:53:

The statute of limitations (i.e. the time limit for filing a lawsuit) is based on the date of the original delinquency with the original creditor. It does *not* become a new debt when a collection agency later buys it, and the clock is *not* re-set.

Also, the FCRA time limit for listing this item on your credit bureau reports is also based on the date of the original delinquency with the original creditor, and is *not* re-set when a collection agency buys the debt.

The fact that the debt is so old is the reason why it was sold (at a deep discount) to bottom-feeders like Gulf State Credit. They paid a small percentage of the face value, because they know that the chances of full recovery are low, since there isn't much they can really do to you at this point.

But be careful - some collection agencies have been known to submit very old debts to the credit bureaus, with deceptive dates (e.g. the date they bought it), making it appear to be more recent, and within the reporting time limit. So get copies of your credit reports every six months or so (check our the *Credit Reports* link at the left side of the screen to request them.) If this item appears, you can submit a dispute with the credit bureau, explaining that it is bogus.

Check out the link below, and read the Collection Agency FAQ (Frequenly Asked Questions) article, for advice on dealing with third-party collection agencies, including your legal right to order them to stop contacting you...

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: The statute of limitations (i.e. the time limit for filing a lawsuit) is based on the date of the original delinquency with the original creditor. It does *not* become a new debt when a collection agency later buys it, and the clock is *not* re-set. : Also, the FCRA time limit for listing this item on your credit bureau reports is also based on the date of the original delinquency with the original creditor, and is *not* re-set when a collection agency buys the debt. : The fact that the debt is so old is the reason why it was sold (at a deep discount) to bottom-feeders like Gulf State Credit. They paid a small percentage of the face value, because they know that the chances of full recovery are low, since there isn't much they can really do to you at this point. : But be careful - some collection agencies have been known to submit very old debts to the credit bureaus, with deceptive dates (e.g. the date they bought it), making it appear to be more recent, and within the reporting time limit. So get copies of your credit reports every six months or so (check our the *Credit Reports* link at the left side of the screen to request them.) If this item appears, you can submit a dispute with the credit bureau, explaining that it is bogus. : Check out the link below, and read the Collection Agency FAQ (Frequenly Asked Questions) article, for advice on dealing with third-party collection agencies, including your legal right to order them to stop contacting you...

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