Credit Facts

If you have the time, could you assist me on understand the state of limitation, sold/transfer to collection agency, charge-off, and re-aging?

This was left in my inbox. Anybody wants to volunteer?

Hi whytedaises

Sure I'll help you with what I have :) First of all welcome to the Credit Magic Community.

A Statute of Limitations means the number of years certain debts can be pursued by a collection agency or an original creditor. You can get a better idea from here

fair-debt-collection.com/statue-limitations.html

You have a debt with a creditor. When the creditor decided to give away your account to another third party in return of some money as settlement, it may be considered a sold off. The creditor has then old off your account to the third party which is the collection agency. This collection agency will then pursue the debt. You will no longer have anything to do with your original creditor once your account is sold off.

A charge-off means that you have not paid a debt continuously for a period of 180 days or 6 months. It is then charged-off by the creditor. However, this does not, in any way mean that you don't owe the debt anymore. You still do owe it. If you pay a charge-off, your report will shoe 'charge-off paid' or 'charge-off settled.

Say you haven't made nay contacts with the collection agency or your creditor about a debt you long owe them. Say the SOL in your state 4 years and you have only 2 months to cross the SOL, but suddenly you send a DV letter to the creditor or send a minimum payment to the creditor for the harassing calls they have been making to you. This means that your SOL has been reset from the day you last made a payment or last acknowledged your debt. This is called re-aging.