How long can a bad debt stay on one's credit file?

[AlexInCali]

What is the name of your state (only U.S. law)? California

My life-partner has a bad debt on his credit report that's something like 12 years old. It seems that it keeps showing up because the debt has been sold to different collectors several times. I won't go into the details too much of the original debt, but I'm sure that legally he did/does owe the money. He wasn't able to get the original creditor/merchant (one and the same) to take the defective product back. All those years ago, I'm sure he should have found some way to force them to accept the return. The product (computer) NEVER worked.

The collection agency with which the debt currently resides calls us 8 to 10 times per day. I just don't answer the phone any more when I know it's them.

I told him to send a cease and desist letter.

Is it legal for this thing to still be on his credit report? I thought bad debts had to be removed after a certain number of years (I thought it was 7)? Does the fact that the debt is sold to a new collector start that clock all over again?

If he sends the cease and desist letter can he still be sued for the debt? It seems like they would have tried to sue him by now if they were going to!

It doesn't seem to be affecting his FICO score that much, but it's still a negative item on his credit report.

Thoughts?

 

[cosine]

Dispute the item with the credit reporting agency. If they re-age it to put it back on, sue the collection agency that put it there.

 

[AlexInCali]

Dispute the item with the credit reporting agency. If they re-age it to put it back on, sue the collection agency that put it there.

Thank you very much for your response. I'm sure he wouldn't go as far as trying to sue the collection agency, but I do have a question: on what grounds should he dispute the listing on his credit file? Because the debt is too old, or for the original issue of the non-working item?

Thanks again! I really appreciate it!

 

[JETX]

on what grounds should he dispute the listing on his credit file?

He doesn't need 'grounds' to dispute a reported debt.

The FCRA (Fair Credit Reporting Act) stipulates the amount of time that various debts can be reported.
www.ftc.gov/os/statutes/031224fcra.pdf

A good sample 'dispute letter' can be found online at: Sample letters for use in credit repair, debt consolidation, credit disputes

 

[AlexInCali]

He doesn't need 'grounds' to dispute a reported debt.

The FCRA (Fair Credit Reporting Act) stipulates the amount of time that various debts can be reported.
www.ftc.gov/os/statutes/031224fcra.pdf

A good sample 'dispute letter' can be found online at: Sample letters for use in credit repair, debt consolidation, credit disputes

Finally, someone offering some actual real information. Thank you. Unfortunately, the FTC site must be down. I've tried going to ftc.gov and even tried via google, but to no avail. Argh. I'll try again later. No big deal!

OK, so we know debts must be removed from one's credit file after being inactive for 7 years. Here's the issue though: this particular debt shows as recent, even though it is not. I assume this is showing as the date that the collection agency bought it. The original creditor does not show up, only the new collector. Would there need to be some kind of proof from the debtor's side? I mean, the credit bureau isn't going to just take someone's word that "no, that debt is actually much than it says, please remove it."

Thanks for providing some real information. I appreciate it.

 

[JETX]

this particular debt shows as recent, even though it is not. I assume this is showing as the date that the collection agency bought it. The original creditor does not show up, only the new collector.

What you are describing is called 're-aging'... and though it is often done (by unscrupulous debt collectors) it is NOT allowed without your permission or specific actions.

Rather than repeat a lot of already existing information, go to:
Reaging of debts and delinquent accounts
Debt Collectors Re-Aging Accounts - How To Protect Yourself :: Alabama Consumer Law Blog

The CRITICAL date for reporting a debt in a consumer file is set in the FCRA at:
§ 605. Requirements relating to information contained in consumer reports
(c) Running of Reporting Period
(1) In general. The 7-year period referred to in paragraphs (4) and (6) of subsection (a) shall begin, with respect to any delinquent account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and loss, or similar action.

Would there need to be some kind of proof from the debtor's side?

The 'proof' is supposed to be required from the reporting creditor, but it is often not provided or is not sufficient. Your dispute must be done in WRITING and I suggest you send them some of the accurate information (name and dates of the ORIGINAL credit account) for each account you are disputing. You should also include that this debt is being re-aged without your action or approval. Provide as much information as you feel is needed to support your claim.

I mean, the credit bureau isn't going to just take someone's word that "no, that debt is actually much than it says, please remove it."

Correct... but the FCRA requires that they investigate a consumer dispute when received.
Look at the FCRA:
§ 611. Procedure in case of disputed accuracy

BTW, I just checked the FTC website and it is working. Go to:
http://www.ftc.gov/os/statutes/fcradoc.pdf

 

[AlexInCali]

JETX:

You have provided some excellent information that will prove to be a great help. It's folks like you that make these forums worthwhile and helpful.

Thank you so much.

Incidentally, I can now get the FTC site. Must have been a temporary glitch!

 

[JETX]

Thank you so much.

Of course, you're welcome.
Another satisfied 'customer'.