For Northern Virginia consumers and business owners, protecting your credit history is vital. A clean report helps you secure loans, finance large purchases and even qualify for certain jobs. When you see an old, unpaid account lingering on your report longer than it should, it is natural to feel frustrated and misled.
Reaged debt, or stale debt, is a problematic practice. It happens when a creditor, collector or debt buyer illegally attempts to keep an old debt on your credit report by changing the date the debt first became delinquent. They do this to extend the time they can pressure you into paying it. However, this practice is wrong and it violates federal law.
The truth about reporting time limits
The Fair Credit Reporting Act (FCRA) strictly limits how long most negative information can stay on your credit report. It can only stay on your credit report for seven years from the date of the first delinquency. For nearly all collection accounts and late payments, the date of first delinquency is the date of your first missed payment that ultimately led to a delinquency. It should never change, even if a debt is sold to a different collection agency.
When a creditor “reages” the debt, they are essentially resetting that seven-year clock by reporting a newer date of first delinquency. They do this to make the old debt appear fresh and keep it on your report longer. This artificially damages your credit score and gives them illegal leverage to continue collection efforts. They hope you’ll pay just to get the inaccurate item removed.
How can you prevent a creditor from reaging your debt?
Regularly reviewing and checking your credit history is the single best way to protect yourself from errors like reaged debt. We urge you to review your reports to ensure old debts are not staying on your file longer than legally required.
To look for reaged debt, you can:
- Access your free reports: Every consumer can get a free copy of their credit report once a week from each of the three major credit bureaus (Equifax, Experian, and TransUnion) by visiting AnnualCreditReport.com. There is no need to purchase the report from the credit bureaus. In fact, you should avoid purchasing the report or score from any of the three credit bureaus. You only need the free credit report.
Check the dates: Look closely at any negative accounts, like collections or charge-offs. Verify the “Date of First Delinquency.” If that date is older than seven years, or if you suspect it has been manipulated to be more recent, you may have a reaged debt case. - Finding your score: While you can get your full reports at AnnualCreditReport.com, many credit card companies, banks and financial websites offer your credit score for free as a regular service.
Consumer protection against illegally reaged debt
If you discover an illegally reaged debt or any other errors on your credit report, you don’t have to deal with the problematic creditor alone. An experienced consumer protection lawyer can help you correct credit report errors, get the debt removed from your credit report and take swift action against the creditor who violated your rights. At Thomas R. Breeden, P.C., we represent victims of fraud and work hard to protect consumers against unfair collection and reporting practices.
If a collector or credit reporting agency has broken the rules, we are ready to hold them accountable. Contact our Manassas office today to schedule a consultation.